Union Cabinet has decided to close Bharat Gold Mining Limited (BGML), CNBC TV-18 has learned from sources. Bharat Gold Mines Limited (BGML), an erstwhile public sector undertaking was incorporated in April, 1972 under the administrative control of the Department of Mines with its office at Kolar Gold Fields (KGF), internationally famous now with the box office hit KGF Chapter 2.
The Cabinet had taken a decision in the year 2006 to dispose the assets through a global tender with the first right of refusal in favour of the ex-employees society. Due to the passage of time, various changes had taken place and various issues emerged and the decision of the Cabinet could not be implemented. Since the company was shut down, the demand for its revival has remained alive. Many state and union ministers have been pitching to reopen the company too. However, the centre has made it clear in 2021 that there are no proposals to.
Pralhad Joshi, Union minister for mines, coal and parliamentary affairs, who represents the Dharwad Lok Sabha constituency, clarified clarified that there is no such proposal anymore.
Replying to a Lok Sabha question, he said, “Bharat Gold Mines Limited (BGML), a Publ Sector Undertaking was incorporated in April, 1972 under the administrative control of the then Department of Mines with its office at KGF. It was engaged in mining and production of gold mainly in KGF and a few smaller operations in Andhra Pradesh. As its operations became economically unviable, the orders for winding up were issued on June 12, 2000. Operations at BGML were stopped effectively from March 1, 2001. The Union Cabinet on June 27, 2006, approved the sale of assets of BGML through an open global tender. The matter went into litigation and a Supreme Court order dated July 9, 2013 permitted the centre to proceed with the global tender as per a decision taken by the cabinet.”
“All the mining leases of BGML have expired and the application for renewal of mines in Karnataka is pending whereas the Andhra Pradesh government had terminated all three mining leases. Besides, as per the recent amendment of the Minings Act, if the mining lease is not determined then the mining lease will expire in 2023,” the minister added.
Earlier this year, Union Cabinet approved the setting up of a new government-owned firm for pooling and monetising sovereign and public sector land assets. The National Land Monetisation Corporation’s (NLMC) main objective was to undertake monetisation of surplus land and building assets of Central public sector enterprises (CPSEs) as well as government agencies. The firm helps carry out monetisation of assets belonging to public sector firms that have closed or are lined up for a strategic sale.
BGML is strategically located at 90 km from Bengaluru airport, 260 km from Chennai Port, and 314 km from Krishnapatnam port. BGML, which operated KGF and was closed in 2001, has about 12,000 acres of land.
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