20000402

Bharat Gold Mines

closure just

a matter of time

NEW DELHI: The last of the nails is being readied to strike into the coffin of the once-famous and now comatose Bharat Gold Mines Limited (BGML) at Koler whose closure is only a matter of time.

Around 4,300 workers appear to have exhausted all their resources in trying to stall the inevitable. "The workers are irritated and angry. This is a sensitive subject and their emotions are understandable," concedes BGML Managing director R. Gupta.

On February 1, the government of India did what the workers most feared: At a hearing of the BIFR, the government stated it has no objection if the BGML is wound up. Worse, the government said from April 1, 2000, it will not be extending financial aid to the BGML. And, finally the government offered voluntary retirement to the last of the company's employees.

Since 1992, the Centre government had been subsidising the gold mines. With almost next to nil production, the goldmines were on ventilator, with the sole lifeline being the Centre's assistance. Last year, the government gave Rs 250 million.

The last nail is expected to be struck on May 16 when the BIFR will hear a show-cause notice it has issued asking why the gold mines should not be closed. "With the government making clear its intention, the options are limited for BIFR," said Gupta.

Once BIFR confirms the closure, the case will come up before the Kanataka High Court. Since the government has washed its hand off BGML, the high court will most likely ratify BIFR's decision. A liquidator will be appointed to oversee the shutting down of the BGML for good.

The goldmines last made profit in 1975. Since then, it has continually made losses leading to the present position.ÑAPP