STUDY REPORT IN GOLD MINING

Item

Title
STUDY REPORT
IN GOLD MINING
extracted text
Goha h- BiT. 1 V

July 2001

monthl
y
-

’ny: Kfif upo
______ '
i: Volume.’ g

Issue.- 7

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AN ANGLO-INDIAN ENTERPRISE

Rs- 3 DO

YOUR FRIENDLY NEIGHBOURHOOD NEWSPAPER
NEWSPAPER

WHAT WILL KILL
KGF QUICKERB|
/

| CYANIDE DUST AND LACK OF
WATER, OR CLOSURE OF BGJ^L ?
about positive results.
water. Secondly the dry cyanideSesidue
heavy winds prevailing, and polluting foodgrains veselnbles
feel that these
probes
kiij

are stn,8g,ing for even a few pots of
h 6 inaSS,Y! dumPs around KGF is^lifting with the
1,10 PUbHC ’

■*

■C i •
WaV.
Water at what cost

The most acute problem

means

"“*.•<1 • the’"—

-

'We an^

of ' conveyance.

UK transport ^.pou^-t to v People with pots,travel all the

scarcity of water. The worst, from < ’
hit being the mining area and onty-the £ei
the mining colonies. p

lahr8e "umber of people
x alleged
that
with
iit’s of waler,and ^ome^wer^wn
determination to shut dov...
SGML the management is'
absolutely unconcerned about
the plight of it’s inhabitants
who are left to suffer. rw(
have to travel for miles just
get a few pots of water'for convenience
T
hiuddy and a .<§1 low ish colour
household use.
For 'the' XTT/nf.
>mostofthe“
procurement of water people people take their"S hv^h*
The complaints of the public
are using cycles, -.ir^s,
| aftemoo^i^ K.6 wh®n
by the Press
are
nutonkshaws.
mopeds. N;1g;,r ‘ ,IU|
if| ^.L J* V™1
water is hot fit for
’ .sc<
^^.QKycles and other
fa 4J0

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Lentils and dhals • cannot be comment and would, have to X
boiled in it, and soap does not consult with the physician
the
lather. Even,after it is boiled
Over a hundred years
for a long time, a large quantity the Britishers had established a ’’ '
of white sediment is left at the project -and pump-house at
bottom.Bethamangala lake to provide
Tbe num ng people say that KGF with water.
if they get borewell water Although the Bethamangala
pumped through their pipelines ute
:. works
... 1 'is still
'■ operation.,
water
even twice in a* week it is a it is
:: not
/-t running as efficiently ' ‘
miracle which they must be ias in the British days when
thankful for. Many people there; was no scarcity. Today .
'have to pay money to get ttarilH
the Bethamangala lake is dry.
water, per pot oiiper can.
And shallow/
shallow. AwcHw-J
And no steps
The outcopS of this water have .been taken to dredge
---- or
scarcity-■■ifc.^U>at.--Tbere is an desHtTmcHfeeperrt
desilt and deepen the lake to
impending dan^erof epidemics increase it’s storage
~ J capacity.
V
breaking, dut‘;-ip KGF at any
The
KGF
The
K.GF
UPDATE
time
because.
lljie
toilets
in
the
interviewed
first
the
• - •
■■■ h'v ...w. ..w..vm nisi me Junior
mining areas-'have .not been Engineer of the Water Works
n-u ■'

...j. ..
• .................. i
flushed since
,'the month
of Department
in
KGF
I
March 2001. '• Already there Mr.V.Narayana Reddy,
and
have been some reports of then the
the’ Asst. Executive
Cholera and*'^yphoid.


The Engineer at Bethamangala Mr.
District
burgeon
\___ Kariyappa to try to determine
when
' contracted ,-6y: the i . UPDATE
Where the problem lies. The
, said ~ she
‘ was not ^able to first thing that was staled is that
“7‘n ’’

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Water pipe. IcikbiR while K U.K

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THE KGF UPDATE

July 2001
2
always to filter
water to
Bethamangala
(drinking
The
,
second'fezard
has been spreading is such a
no
, Jfcai__ is the'
drink or cook.
Even after way 'that vehicles passing
[it^.fr%ater could be dust from the • <Mill Tailing
cooking we cannot eat our food through Ashoka . nagar cannot
jmid because the lake was
Dumps" all afound KGF.
..H..
AM-.--j. wear
js comjpg qh |be
peacefully.
We *cannot
,-Thjt KGF people are being locally
called:/ “Cyanide
good clothes and come out.
opposite direction. Vehicles
water from seven Dumps” because'^f.it.'s content
EDITOR :
Nearly 5 to 6 people in our area
borewelfc in Gosinakece .which of “Cyanide” used* to extract
rea ^e using head lights during the
(4,h Block) are affected 1b.v wniy to avoid accidents.
GLENN B. EARDLEY
is in Bethamangala-limits. The the gold.from theore.
typhoid due to inhaling this
I
request the concern
Department further states that ,vuc
uic v |wav
.11)Ua
Due to the
heavy <n
winds
failing in KGF "the 'sand ' dust. We just cannot go to the authorities to take' help from
HON. EXEC. EDITOR
market to purchase vegetables.
(Name Withheld)
BEML Fire Service and
water per day, but onk 5 to 6
dumps i$ lifting and
We are scared. to buy any Robertsonpet Fire Service/ To.
lakh litres,can be supplied due spreading all around the
foodstuff, even grains. The
water the Cy'naide dump every
to the short supply of surrounding areas, in theJvfG.
REPORTERS:
solution to this ' problem is that alternate days. This rs not a
electricity. And there is no Market in Robertsbnpet. It is
Hasmukh Jain
water has to be sprinkled temporary problem it’s a life
alternative.
The
Asst. mixing with the fobdgrains and
L.V.Pradeep
regularly ’ n\ er the dymps to long process. So they should
-Executive
Engineer
Idntils.
and
covgipg
all
the
R.S. Mathew
settle them but this is do something permanently.
Mr.Kariyaappa said that to/
vegetables and' meats on
Daniel Magesh
temporary. The permanent People who are coming from
sotyp the water problems sr display for sale.'■•ft'is covering
solution for this problem is tree outstation condemn KGF b’coz
propo
sal
was
submitted
to
yAM
MrJFi.ratel tne previous -etne^
.
of this situation.
Ms. Rama KR.
MinisteHjut it got no response.
If this continues we will
Sheshadri
Again a renewed proposal had
stage a Dhaijia in front of
been presented to the present
Municipal office.
OFFICE & DTP :
Chief Minister the Hon’ble
V. Megnathan.
Mrs,. Suganthy Raghu
Mr.S.M.Krishna but still no ‘
President KGF City Yuva
response is forthcoming.
Janata Dal (S).
OFFICE ASST.
In addition, to solve the
Extid
from
a
report
entire
water
problem
in
KGF
a.
L.V. Pradeep
sum of Rs.15 crores is required
presented by Mr. A Rajan Babu
to lay new pipelines, new
a Scientist from NIRM (
pumps, motors, machinery etc.
National Institute of Rock
Still, if one takes a walk
Mechanics ) gives us aVi insight
■taiiMaiilinlliWliril
around KGF one can see
into the impact of these “Mill
leaking pipelines in certain
K.G.F cyanide dumps
Tailing" dumps or “Cyanide
spots gushing precious water ■
dumps” on KGF, as under.
the shops' and houses with a plantation;
Jnto the dry ground.
And
The glory of world
film of dust which is harmful to
repeated complaints to the
First Grade College (KGF)
health.
The KGF Update are providing free plants and famous Kolar Gold Mines is
Water Works Department KGF
interviewed a section pf people, even the environmental society already fading in the records of
to come and repair them gets
gold production and is at the
and here are their comments :no respdnse at all. The KGF
for human care of India which
verge of complete closure.
OK Hair Saloon
UPDATE as an experiment
is in Kolar provides plants free
However the impact of earlier
Pilchard! Road,
made several complaints about
of cost.
The concerned
mining activities cannot evade
Jeaking pipes ip the Pipeline
authorities-can get plants from
Robertson pet KGF
/rbm potential threat of causing
.uad'area next to the office,
and plant to solve this
Di|i to l^e opst dr t£S?Cyanide them
hazards , in
problem. Bit there is'fy) water , environmental
btit nobody from then Water
dumps we ar^. facing a big
today’s life and the long years
to grow them.
Works Department even came
problem for the customers and
to come in the future. Ever
to inspect the sports. One of
R.Purushotham MC. since the production of gold
the workers in our shop
the reasons for water pipes
25th Jain .Ward, 4th Block R,pet
because of the wind. The dust
was started in large scale, the
Jeaking all over KGF on mud
KGF. And L.Thirumurugan, mine wastes in the form of rock
is accumulating within our
*•..(roads is the passage of heavy
KGFCity Yuva Janatha Dal fragments and .mill tailings
shop. Cleaning has become a
lorries laden with granite
Gen. Secretary, have been stacked in huge piles ■
big problem, everf Scissors are
stones
and
building
and heaps at different parts of
being rusted due to the residue
construction materials.
•The employees who worked the leasehold area. The volume'
of cyanide.
Another problem that the
underground
have
been of these wastes has _____
. Rs. 20/- per column centimeter
steadily
Venky.
uncording to the variable size of public alleges is that some
affected by silicosis diseases, increased every year and today
well-to-do people have water
Now the people who don’t it is occupytng-abouf* 15 to 20% )
yourAdvL
Children and elders are highly
pumps in their houses which
work underground i.e, mtning of the leased land.
RS.460/- .• : 1/^Page
suck the water directly from the affected by the dust. We-just and
non-mining
general
Rs.'96O/- * v Quarter Pag'd*
cannot go to the market to ' peoples of all age groups have gradeThe extraction of highmain line and the people
Rs. 1850/.- Half Page
5 ore through milling and
purchase vegetables because been affected by the cyanide
around them do not get any
'Rs.3750/: Full Page
heap leaching of low-grade ore
you
can
find
this
cyanide
dust
supply.
Rs. 100/- . for
any
pop­
dust which is spreading all over essentially uses the highly toxic
all over them.
All over KGF there are One
KGF. We
" just can’t go the sodium cyanide (NaCN). The
commercial “Readers Adverts"
The concerned authorities
hundred and ten mini water
of reasonable size, only:
:
tanks, out of which only 65 are !
Rs. 50 /: ^for reader’s
functional and 45 are broken this problem.
settled all over, I suppo^U---process of leaching gold from
classified adverts.
' ■ *•7
Previously it was effecting
and leaking. In Oorgauinpet
only
silicosis
but
evep the ore as a gold-cyanide
Note: Ad^'ertlsenivnt on the the Overhead Water Tank is only the workers of BGML.
unknown diseases, will effect complex. Large quantities of
Rack Page will be charged badly leaking as it is damaged
But, now it, has • started
the peoples.
alkaline water are cycled
50% extra.
j
and people are afraid to. walk effecting tltfiavaeneral public.
So J# request the concern during the milling and heap
___ it. The maximum action Kolar
p
-Fields
has
’near'
aJ
authorities to take immediate leaching
process
that
SPECIAL OFFER
the Water Work^ Department becomingbr the
. Cynaide
action on this issue. Normally potentially consists of NaCN,
has taken is to display a public j Fields. no rat'9£ '
Indian life span is short. By free cyanide and metal cyanide
notice saying “Danger. Stay
KGF peoples dp' not’ have
Rs. 200/- for Front Page
inhaling this dust it will complexes.
The cyanide
Away

..
When
contacted
by
fresh
air
to
inhale.
..
C orner Panels
become very short.
containing water bodies are
the
KGF
UPDATE
they
say
It
is
my
humble
request
to
liirihs, Deaths, and Person ‘
Two years ago K.Rajedran highly hazardous to the human
that they plan to demolish it, the District. Commissioner of
Missing »w7/ be printedfree.
Janath^ ^Dal
State
Gen. life and other living beings if •
they had given a proposal to Kolar and the Commissioner of
Photo willfe chargedfor.
Secretary’'“Labour Cell (S£). not properly managed. In this
the Govt, two years ago for it’s Municipality, to take, some
Met the BGML MD and they paper an attempt is made to
broughtt mud from ai nearby emphasize the hazards of
Hy Advertising in. our Neivs repairs, but there has been no necessary steps with regards to
this issue, f ?village
Paper you .can efficiently get response.
village .and spreaded all1 Iover cyanide from milling and heap
The people of KGF feel
directly into ■tontacL.wilh ytfur

Suresh Babu.
the Cyanide Dump. But it was leaching process mitigation
a District __
potential customers right here that they are given
Gen.Secretary, Yuva , ttemporary—*
Noitf- the w.
situation measures to control them.
*
in KGF and Kolar District. stepmotherly treatment by the janathaDal.
of BGML is not good, So 1 HAZARD POTENTIAL
. •<
Our rates'.'are, absolutely the state because KGF has a
request the Kolar District
THE
MINE
of Tamils
residing Yes, Youngsters and
antf elders are
lamns icbiumg
—...........
oom
lowest you- ivill find anfwhere majority oi
Commissioner
and uic
the vuy
City FROM
here. They say it is obvious highly affected by.fhe cyanide
Municipal Commissioner of WASTE AND MILL
in the- World
f
Robertsonpet
KGF to take TAILINGS AT KOLAR
Rights. for accepting or ^rom the way the State .is dust. Aged people eyes are
i, in
...
bacj|y affefctcil.-’ Xnd next
immediate action.
If this
rejecting advertisements are treating development* work
GOLD FIELDS (KGF)
-rfp/KGF
in
every
way.
we are suffering from throat. , problem persists it will affect
reserved and are the dlser:'t...,.
One major source of ?
pain due to this dust. We have
the public very badly. The dust
hazard to the human and other .

STAFF

i

i^

THE STIFF
OF THE KGF
UPDATE
CAN BE MET
EVERY
WEEKDAY
BETWEENz
9.30 AM. > -yd

TO
. I2NOOY.

ADVERTISING
RATE LIST

"J*—« » - StX.’KSSSX gU&TST'b

1

/
, /
* .THBKGFtfrDXTE
are a known.source of drainage* lakhs lo.KEB'. Due to this KEB
. living beings in and around songbirds were found dead in
everywhere else around the1/.^
blockades, t
has slopped the power to the
KGF is from the dusts of stored the immediate Vicinity of gold
country (mainly the Southern
CONCLUSIONS
waler
works
qf
BGML.
When
1
mill tailings. During windy mine heap' 'leach extraction
• part of India) the-monsoon has
not showed its face in this poor ,
/
• Over many years, the approached
Mr.Sampath
- days dust particles, are found to facilities and tailing ponds
mans land. The worst hit are.: - • \
of cyanide Kumar the acting Managing
be deposited on every part of assumed to have drunk cyanide
hazardous "Tuence
infli
tailings Director of BGML he said we
the town and the layers of dqst contaminated water (Clark etal.
contaminatat mill
the people residing in the mines \

'heaps att have got only 2 lakhs and we
up to 30 mm is noticed' on 1991). It is reported that the
stacked in, huge
locality, where to fetch a pot of
different parts of KOF has been don’i have the remaining 10
rooftops.
exposed death rales of birds w^re high
drinking water they have to
when the tree cyanide levels neglected. The s'tudies carried ntord lakhs io’ pay them. So I
windowpanes,
doors, etc.
walk miles together, but hey!
Frequent accidents due to poor are 0.12 mg I-I in air, 2.1-4.6 out elsewhere-on the topic’ accepted to pay them. Usually
Hold on I Getting it is a
visibility are reported. The
The mg kg-1 body weight vig acute concerned ,v have
_
different story altogether, ‘coz
resealed here in other places 5 hp
riiotors are been used to pump
dust particles are a main source oral exposure, and 1.3 mg kg-1 significant '■’health hazards
only the fortunate do get it. .
5 t0
administered
of water pollution too. The administered
intravenously ■ human ■ life
and
serious water. Where* as. in mining
The rest of course have to
dust is. mostly made up of (Eisier 1991). The domestic influence on birds, mammals

••I?'*

silica, which was identified as a chicken is however classed’ etc. the deteriorating sittiations
carcinogen to "humans by the under cyanide-tolerant species. noticed for maintenance of •
!
international agency for Cancer ft i$ also reported that birds that these heaps of mill, tailings is1
Research. Recently the agency feed predominantly
‘lly" on ■flesh
n—uis
-- causing serious /environmental
has decided to change the more sensitive to cyanide than concern at KGF.
ft is
classification to “Carcinogenic those feed mainly on plant suggested .to. conduct
a
to Humans” [Ronald Eisier material.
scientific study to assess the
The
deadly
etal. 1999.].
Huge numbers of reptiles, influence of mill tailings on the
disease Silicosis, is a serious amphibians, birds etc are human life and other living
*
health hazard and may cause . reported to be killed by cyanide beings in and around KGF and
death in a short period of time.
poisoning
at
cyanide- ‘-----’------at‘ suitable ----to arrive
remedial
The danger from silica extraction, gold mine mill measures. •
dust is.not confined
to the tailings and heap leach ponds
•\
work force directly *|Vedl6n in « California, Nevada, and •' The Cyanide compounds have
>________
- .the mining activities but hhsfa Arizona. • The victims also allegedly
penetrated
the
strong influence oh yll those i included domestic dogs. cats. goound and water table and the
Bethamangala lake
who are exposed to it. It is I cattle' scluirrelI etc .(Eisier borewell water KGF is how
areas they use 15 hh motors. I compromise with the available
ft
pertinent to mention that a 1999).
I. is.
... reported that
using may be contaminated
spent Rs. I lakh and drilled a borewell water which is salty
survey on the silica dust accidental acute poisoning in with it to some extent.
And
non-consumable
borewell riexi io Sampath and
humans
is
rare
and
no
cases
of
hazards to the human life in
Therefore with the water
Mosiac and it is functioning abviously unhygenic.
and around JCGF has to be illness or death due to cyanide shortage on one side, and
I hope the gods show some
properly lot of people all'over
immediately taken up to in water supplies are known poisoning from the “Cyanide
the place are gelling that waler/ mercy on this poor man’s land
generate a data bank, It is (Towill etal. 1978). However dumps” on the-other, it may
There arc. 2 horcwells in and grant us some heavily
known that so far. no such skin ulceration has been hot be just the closure of
ParanUahalli in which, through showers.
exclusive survey has been reported from splash contracts BGML that will kill KGF I
Forbidden Soul of Golden
one horewcll. the waler is
carried out. ’ However some with cyanides.
flic KGF UPDATE contacted
Citv. Cyber Planet. Raj.
supplied to KGF.
There
are
no
records
of
data on the general dust survey
the MLA MrJJakihavachalam
Regarding the Cyanide dust
and impact on the mining any loss to human life or cattle on the phone and ibe following ' problem I spoke to the mining
workers are available in limited . due to cyanide poisoning at are his . icinafks regards the jnanagemdnl. and -even a1'.
records.
political leaders'spoke io tficTi.
•On I3,h June 2001 one
Certain diseases like viral
'
at leiisi id pu^wiiicr or to pm Mrs.Badmamma
45
years
0
fever especially among the
■ ■ • the •dump*) resident of Kamakondahalli
.mud
.wci.
Mr.Sampath Kumar acting
children during windy days.-went with her family to Mysore
s | Managing Director of BGML
increasing patients of Asthma.
to attend a marriage. . While

;
said they don’t—have the
Bronchitis,
Head
qches,
returning sjie had came to the
\ .. j amount even to provide diesel
Weakness.
Eye
Eye
related
Robertsonpet old bus stand to

J
to
vehicles
to
do
all
this'.
Due
to
problems. Stomach disorder
|
catch a bus to return to her
.
Ithe
dust
there
are
chances
for
etc., gives an alarm for the
village, but the bus was full

}
Silicosis
disease.
1
spoke
to
the
impending danger through dust
with passengers, she was
• Deputy Commissioner of Kolar carrying a I year baby with her
and other pollution at KGF.
| to solve this problem , he said
Biologically.
cyanide
and a suitcase. While she,was
( very shortly he is. going to struggling to get inside the bus
does not present in soils us it Is
. ji. solve it. . •
either complexed by trace
with her baby and suitcase, one
’ - i "Regarding the ’mining issue unknown person had told her
metals, metobolised by various
there
was
no
rations
lor
the
last
microorganisms,
or ■ lost
that he would catch a seat for
----- months and I ttpoke to th.
and tnok her
wi[h
through volatilization, (Towill
concerned
«uthortties
and
tin>,;„■>
opj ...
cn. ;!|
■ the bus.
him and
went
inside
Sh»j>kecpcr* wcuring kvrchk-r« to
et al. 1978: Marrs and ,
moblh •thev.’are ^oing to issue Then when Badmamma
protect from tknl
Ballantyne. 1987).
The
------ —......a came
KGF. However several cases waten supply and the Cyanide
contents of cyanide are not
.•ms.
of dead cattle at or near the mill pi oblei
retained or firmly absorbed on
is . no water : in
tailings
or
cyanide- "‘ There
*•':
• soils but it is known to leach
Next
contaminated water has been Bethamangala
to
into the groundwater. The soils
reported from time to time. So Bethamangala there is a’ pond
■containing cyanide salts are
far no exclusive study was where a very small quantity ol
reduced to nitrates or to certain
carried out to examine the waler is available.-So to solve
form of complexes with trace
cases of loss of life to cattle. the KGF Water problem I
metals
under
aerobic
to
People have often blamed upproached the Govt
conditions. On the other hand
’.J ,.vt
snake poisoning and J
did
not sanction some amount. Under
under anaerobic conditions if
the mini water lank scheme 'he
think from other possible
[
escapes to the atmosphere in
A Govt
Govt, has sanctioned Rs. 80
causes of poisoning,
the form of gaseous nitrogen
scientific study to establish the lakh to Kolar Distiict. tinder
compounds. The living beings
actual facts is now an that Rs. It) lakh to KGF.' only
freshly exposed to cyanide are
the day Ix-loic vesiei'day* the
immediate requirement.
adversely affected at 03 mg
HCN kg-1 and the balancing
Poor maintenance of the district has appro cd Rs. 5
develops when they become
huge
heaps
of cyanide lakh. By next week I will get
acclimatized to the atmqspheric
contaminated mill tailings and still 5 ini>rc l:ikhs.*And I spoke
' inside the bus. to her surprise
conditions.
large-scale erosion during rainy io the Govt, io sanction 2 more
the man whom she had given
Scarcity of Water in
season is beepming a serous lakhs, that this might not be
Cyanide is noujd to be a
her suitcase had disappeared.
of
environment sufficient. I- want to increase
respiratory poison due to its concern
KGF
She immediately informed the
pollution, The dust particles the number of mini tanks as
affinity for the cytochrome
(A plea to the Lord)
Robertsonpet police station and
settle in the agricultural lands much fa’l possible to solve this
oxidase complex of the
Sir,
Sub
Inspector Shanthappa
and
render
them.
infertile
for
P
rob,cm
mitochondrial respirator}’ chain
It seems even the Indian
registered a case.
In her
plantation
and
cause
lossof
Regarding
^thc
mining
area
s
(Eisier 1999). It is reported
Gods have turned out to be suitcase she had kept her gold
waler
problem,
the
mining

""
that several thousands of birds crops,. The eroded mill tailings
greedy politicians b’coz though chain, necklace and 5 silk
management has to pay Rs. 12
mostly
waterfowl
and
its ranning cats and dogs sarees.

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Suitcase Stolen
v at Bus Stand

£
RL

H
I
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•RS

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Letters to Editor

- ’SV. 16

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monthly

fSTHEKGFUPDATE
I Shi,1‘SetJohn'
[|‘---------

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AN ANGLO-INDIAN ENTERPRISE_______________________ ______________
iiH

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Issue’.9*

Rs

YOUR

NEWSPAPER

ARE CHILDREN FORCED INTO
CHILD LABOUR IN KGF?
W Here in KGF itself children are working for daily wages instead of going to school. If you take

walk through the back streets of KGF you can see
in workshops, garages, liquor bars etc.
According
to
the own KGF that dozens of young
Constitution of India under children are Working in hotels,
article 24 no child below the age cyclemarts,
garage’s,
fish
of 14 years shall be employed to market, meat shops, welding
work in any factory or engaged shops, bars (liquor shops) saw
in
any
other
hazardous mills, residences
(as maid
employment. This article is servant) day and night in
intimately related to a Directive unhygienic unsafe and health
Principle of State Policy which hazardous conditions while
calls upon the state to enforce being tortured" mentally and
compulsory and free primary physically by their employers,
education to all children in the
Anand is a 10 year old
country upto the age of 14 years, boy staying along with his father
Employment of children is an as his mother had passed away
uncivilised and even 'inhuman when he was 4 year old. He has
practice, it is exploitation, ft 3 elder and 2 younger brothers
stunts their growth, oorrupts who are also working in various
their morals and even drives, fields in and around KGF. He is
them to delinquency. Inspite of living in a small house in
the existence of several laws Andersonpet and. he works in a
.t-.-_t.___i.*
{h*5 protection
Pritchard. barroad,
which
seek to---provide
the
children
against Robertsonper KGF to clean the
to
exploitation this evil still liquor glasses, tables and floors.
While speaking to the
remains in our country in many
KGF UPDATE he said “1 would
forms.
rag ' \ kcr.
The efforts so far made Jove to go to school but how can gets the salary of Rs.300/- per He (Aii.' ed) proudly says thfit he
He stays along will) his
borrows textbooks from his
tiiio JuwtivA
by thec Gt.vi.
Govt, in this
direction are.
are J go to school when my younger mOnth.
mother and 2 younger sisters as
'■•v timidity rather than brothers are working in a cycle
His father accompanies uncle’s children’s to read when his father had disappeared when
month to’coilect his he is free in the night. He says
determiu.ition where we can see mart. If <
’ icll my father that I him
he firs?
joined
he
he was 8 >ears old- He along
"
J ‘

small
children
5selling ,want to go to school he will beat salary. The -most
. pitiable part of that when 1
■ due

with his 2 sisters scavenge •
could
not
clean
fish
properly
newspapers and other items at me clack and blue and chase me Anand’s story is his father stays
traffic signals running in the out of the house”. He further at home drinking, practically t0 d16 unhygienic smell that almost the entire KGF. What is
emitted from the fish-waste but considered as waste, good for
middle of the road from one proudly adds that he had learned living on his children’s salary.
ft has’ become normal to nothing, and is thrown away by
vehicle to another to sell their how to write his name from his
Ahmed is a 13-year-old now
newspapers and for begging.
sschool-going friends. He says
. boy. When he was 10 year old him to clean fish for the most people is “life” for children
---like Muruga for their food. Their
It is not worth talking that while working in the bar he he had lost his parents. Now he customers.
Muruga
a
10-year-old
hfe starts every day early in the
about child
labour which
ininvii io
‘ is harassed and ...
is
ill-treated uj
by mv
the (g
js Slaying
staying Ul
at 1113
his IHUICI
father’3s U1UUIVI
brother
auvui
viiiiu
lawui
---------- o“
_
■ the " <• "ng on
“i the streets with a
happening some where else in drunkards who come to the bar home he works in a fish shop in boy stays with his family in
King
George
hall gunny-bag (sack) on their back
George
King
Sivakasi or in the big cities like to drink and he has to toil from 6 m.G.Market where he cleans "P’bn
,und and leadt the life nf a and ends UP evei v cveninein the
Bangalore. One can sec in our a in bLi11 10 p m in the bar and he fish and cleans the fish shop and


------------------ ---

-----------------

s

j The eyes of the Lord a re-in every place

dumps the fish waste in the
dustbin. He has to cycle 2 Kms
to get water for the shop.
While speaking to the
KGF UPDATE he says “when
my parents were alive I was
looked after nicely and was sent
to school but after their deaths in
an accident 1 was left alone.
Later my uncle took me to his
house and I had to stop my
education and joined in his fish
shop as a cleaner for daily wages
because I don’t want to be a
burden to my uncle. Now I give
my wages to my uncle, in turn
he gives me food and shelter”.

INSIDE
MINING ASSOCIATION DEFRAUDS
PUBLIC?

FREE HEALTH CAMPS
SALARIES NOT PAID
SHIFT BUS STAND?
BANK DEFRAUDED
MARRIED WOMAN RAPED
15,h AUGUST BLACK DAY
HISTORY OF KGF
Prov. 15:3

SEPTEMBER 2002

| THE KGF IIPDATE

2

]

young age work instead of going even used as bus, lorry, and m ini compensate what they have
to school is all in one way van cleaners. For many of them bribed,
commonly because their father a lorry, mini van or bus is their
What is the use of the
most of time stays in the house house. It is a pity that these freedom from the Britishers that
and drinks instead of working children spend their entire life on we got 55 years back when these
and lives upon their salary, and roads inhaling polluted air with young innocent children are not
GLENN B. EARDLEY
iPthey don’t do as he says they blackened greased faces hands free from child labour but arc in
and their mother get beaten up and legs. They look 60 by the the clutches of their drunkard
by him..
time they become 30.
parents and workshop owners,
SUB EDITOR
Another thing very and are toiling day and night at
H.G.Huntely
noticeable in many places all this young age to give money to
over KGF at Temples, Churches, their fathers for alcohol which he
Schools, Markets and bus stands loves more than his very own
REPORTERS:
are young children, most of them child. These tender hands which
L.V.Pradeep
girls found begging from should hold pencil and paper are
Daniel C.N. Magesh
passersby by falling at their feet holding knives to clean fish
or touching many parts of the waste, an old cloth to swab the
Hasmukh Jain
body. All these happen in the floor and table, liquor glasses in
s ■
presence of the parents who are bars, and heavy tools in
OFFICE & DTP:
living on the money collected by workshops. What sort of
Daniel C.N Magesh
these young children and spend independence and freedom is
very little money on the children this ?
& L.V.Pradeep
themselves while the parents
spend the rest of money on
.
liquor.
When
the
KGF
THE STAiFF OF1'
even we are humans when we
These above are the sad UPDATE met a few Govt Dr.B.D.JOSHI’S
THE KGF
iI go to pick rags, dogs chase us stories of just a few child Primary School head masters
SERVICE IN
bite us”. We are not robbers labourers. There are many others regarding child labourers in
UPDATE CAN and
even dogs are more fortunate like them who work hard with KGF, they said that every year at
KGF
BE MET
than us. When asked whether he their small hands and get small the time of reopening of school
knows
about education and has salaries. There are hundreds of all teachers of Govt, school’s go On the 3rd September 2002, the
EVERY
gone to school he asks what children working in welding in search street by street to get Karnataka Dalitha Prajasene has
WEEKDAY
education means and asks, “if I shops,workshops and other children’s below 14 years who sent a letter to the Hon’ble Chief
to school will any one feed establishments. The owners are working instead of coming to Minister, Govt, of Karnataka
BETWEEN 9-30 go
school. After finding them the Vidhana Soudha that the Dalits
my family?”.
employ thes| young children for
teachers put fear into their of KGF are disappointed about
AND 12 NOON
jRaniyama is 12^years their
profit
;Js
they
extract
---more
to send their children to the transfer of Dr.B.D.Joshi.
old and
with her work
^ uivov
these iiuw
little iiaiiua,
hands. •parents
----- is staying
----•>
vvuin. froi
iiuuv
,
.
nere
parents, 1 brother and 2 sisters in feed than
leftovers, and pay T00’:( Wh
' they will get free they say that being a surgeon his
Bowerlalpet. She comes'all the £
__ ipeagre salaries. A walk education including notebooks service is absolutely necessary in
them
uniforms etc,) that if they do not KGF. they say that there are
ADVERTISING way to Pipe Line road first ctoss through
Ji
the
lanes
of send them to school and to work vacancies for doctors to be filled
not
to
attend
school
but
to
clean
____
RATE LIST
Robertsonpet will show many
will be taken in the Government Hospital
utensils, wash clothes, swab mOre young children working in instead, action
*by the
•’ Govt.■.
KGF, but surprisingly, an
against
them
houses,
—’ fetch iyat^’ change cycle shops, garages, workshops
Rs. 20/- per column
The frightened parents efficient surgeon got a transfer to
centimeter according to the diapers and do other households —J welding shops doing send their children to school for some other place, which is a
work.
dangerous jobs without even
variable size of your Advt.
Being bom to a wearing an eye shield and many few weeks. And later stop them great loss for the people of KGF.
Rs.460/- : 1/8 Page
from school and again send them He was a great help to the
drunkard father she works in 5 of than are mentally disturbed.
Rs.960/- : Quarter Page
to work.
downtrodden and the needy folk
houses from morning till
Rs. 1860/-: Half Page
Rich kids parents make
And in the course of of KGF. Therefore, the DALITS
evening.
Raniyama’s
two a hue and ay over school
Rs.3750/-: Full Page
investigation by the UPDATE it want the service of Dr.Joshi
any younger sisters are also working children carrying loads of books
Rs.
100/- for
was alleged by some child- (Surgeon) and his transfer to be
u
'
__
L,
as
maid
servants
and
much
of
on
their
backs
and
they
quarrel
noncommercial
Readers
workers and public that once in a cancelled immediately.
adverts of reasonable size the hard earned money of these wj(}1 school teachers regarding
while an officer from the child
Also, the BGML mines
only.
labour commission visits KGF hospital has been closed, which
Rs. 50/-: for reader’s
with his deputy, takes the photos was a saving grace to the poor
classified adverts.
of child labourers working in the folk of KGF. The private
Note-, advertisement on the
are
exceedingly
shops, and later they threaten the hospitals5
Back Page will be charged
shop owners to bribe them or exorbitant, that the people of
50% extra.
else they will register a case KGF cannot a fiord to pay.
SPECIAL OFFER
The
congress
against them. So they will have
Rs. 200/- for Front Page
to attend court and pay heavy < eminent has always been a
- Corner Panels
fines. The frightened shop source of p'^e J? kA?
Births, Deaths and Person
owners pay them bribes, and downtr cn
Missing will be printed
only if any one refuses to pay the Hence, they request the Hon’ble
free.
officer registers a case against Chief Minister to retain Dr.Joshi
Photo will be charged for.
back to KGF to help the needy.
them.
By Advertising in our News
The copy of the letter
So
due
to
this
the
Paper you can efficiently
was also sent to the Hon’ble
owners
ill-treat
the
young
get directly into contact
children and torture them Health Minister, The Director
with
your
potential
Health and family welfare
customers right here in young hands goes for the liquor this. But they refuse to notice all mentally and physically and service. Bangalore, the chief
make
them
work
hard
to
KGF and Kolar District.
Secretary
which their father consumes all those young children who carry
Our rates are absolutely the time. If they refuse to give heavy bricks in construction
the lowest you will find the money to their father he sites, work In bakeries or carry
anywhere in the
threaten! them that he will beat baskets of green leaves and
Rights for accepting or | their mother, so the helpless vegetables on their heads
rejecting advertisements
children hand him their salary.
shouting at the fop of their
are reserved and are the
While
the
KGF tender voices and roam almost
discretion
of
this
UPDATE made this survey of every street of KGF to sell their
newspaper
child labourers it was found that wares.
what made these children at this
Child labourers
are

STAFF

EDITOR

back yards of M.G.Market
bargaining to sell their collection
at a good- price sometimes with
tears rolling down their, tender
cheeks as the money earned for
their whole days collection will
not fetch them a single square
meal to eat. While speaking to
the UPDATE Muruga says

H

DALITHS
WANT

Letters to the Editor which do
not have the full name and
address of the sender, will not
be published

fear, I am with you

Isaiah 41:10

■ S u

,

aQ t

1’V

monthly

JANUARY 2003

ITHE KGF UPDATS r

F And you
vou shall |i
the
truth,
know
the
truth
» and
shall set you free". L

AN ANGLO-INDIAN ENT I RPRISE

I —

Volume: i

___________

“*

R3.3.00

VOUR FRlENbi-V NEIGHBOURHOOD NEWSPAPER

DANGElFOFEProEMK
IN MINING COLONIES

Issue

3

the kgf
UPDATE

AS TOILETS OVERFLOW FOR
MONTHS

celebrates

10
YEARS

)

The public toilets in the BGML Mining Col^
sa,aries from
i few months because the casual labour
completely blocked so much so
February 2002. The 0"‘let
e"lreta and people are unable to enter them.

OF
fearless
REPORTING

-in KGF. The Govt, seems to be turning
are left
I alone to face the disaster.
Since
the
BGML the residents of mining areas
management announced the could not use the public
closure of mines from toilets as they were
March 2001 all the mining overflowing and they could
operations
have
been ■not enter into the toilets. In
stopped
including
the this situation the residents of
maintenance of Sanitafy and mining
colonies
had
Waterworks. In the entire complained about their
mining areas of KGF the problems-to the mining area
residents of mining colonies Municipal Councilors and
from
Marikuppam
to all
the
mining area
Coromandel have to carry councilors
went
and
pots on their cycles in search explained the problems
The public which were faced by the
of water. which
was
Lavatories
casual resident to the KGF MLA;
cleaned daily by theworking
• • . He
Mr.M.Bakthavatchalam.
labourers who were
BGML told them he will raise a
under
^ie
the Assembly.
management (450 'workers) voice at
v
’ » Govt, of
have been stoppedI as they According the
receiving salaries Karnataka had asked the
were not
RGML The 7-iblic
public BGML management to hand^
hand
from
Uvatories at the mining over the i..
maintenance
—--------- of
been blocked Sanitary and Waterworks to
colonies have I
and started to overflow due the City Municipal Council
to lack of maintenance.

On I5*h February
2002 the KGF City
Municipality Robertsonpet
made an agreement with the
BGML Management for
taking over the water supply
and Sanitation of BGML
area
for
which
the
Municipality will get a
payment of 25 lakhs for
water supply and 25 lakhs
for Sanitation works from
the central govt, every year.
Acting M.D Mr.,Sampath
Kumar including the BGML
officers and City Municipal
President
Mr.Das
Chinnasavari
with
his
councilors and municipal
commissioner Mr.Ramappa
signed the agreement. The
following points
were
agreed by both the groups:ag
The CMC will take over
the water supply system

th. plighAf the miners who

I- :

Bi

- LAVATORIES OVERFLOWTING -

and sanitation system of
BGML area.
water
supply
2. The
system including pumps.
-j tanks and
pipes, masonry
to
steel tanks connected
cc
existing water supply will be
handed to CMC and BGML
will provide mobile water

tanks to meet immediate
necessity.
3. For
employees
of
contract labourers casuals
engaged for water supply
and sanitation. The wages
will be borne by CMC with
effect from 01 -02-2002.

PROTESTERS LATHI CHARGED


jta r ■,

il

- pig AD BODY OF J AG APISH_______ .

Cali unto me, and I will answer thee.

Bethamangala police station
limits was married to Susila
On 28th December 2002 at
of kgp enquired with some
hmi
of the Batarayapalli village
around 3:30 p.m a male of
police personnel as to what
several years ago with the
35 year old/Was brought for
was the reason for his death
passage of time Susila gave
emergency treatment to the
they simply replied that'it
birth to 3 children’s and
Robertsonpet Govt. General
was a suicide case. Only
later on a quarrel between
Civil Hospital. By the
much later it was learnt it
husband and wife became a
Bethamangala Sub Inspector
was a custody death. Later
daily routine. Due to this
of Police Mr.Jagadish, circle
the Dy. Superintendent of
Susila took her .children and
inspector
Mr.Kudhur
Police Mr.Reddy visited the
went to live with her father
and other police personnel
hospital. According to police
’ Nadasana.
On
28
after
checking,
after
sources it was learnt that
December 2002 at 11 :a.m
checking
the
doctors
Jagadish a 35 year old
informed the police that the
6 A page >Q
resident of Kothur within
patient was brought dead.

Jeremiah 33:3

J

,

JANUARY 2003
THE KGF UPDATE

4. Water charges and
sanitation charges will . be
collected by CMC from the
public.
5. Some machinery and §
materials purchased for new
GLENN B. EARDLEY
pumping schemes will be
handed over to the CMC for
HON. EXEC. EDITOR -< completion of left out jobs.
6. The BGML authorities
(Name Withheld)
handed over the BGML
water supply department to
REPORTERS:
the CMC in which 6 water
tanks included.
L.V.Pradeep
.'’’J
It is a well known
Daniel C.N. Magesh fact that BGML was
PITS OVERFLOWING ON THE ROADpreviously
having
a
Hasmukh Jain
commendable record of not Councilor K.C.Murali.
colonies
are
suffering
producing the yellow Oorgaum area Councilor
without salary for the past 8
OFFICE & OTP: only
metal but also flourished in Kulasegar, Nundydoorg area
months first announce at the
Daniel C.N Magesh & maintaining a well planned
meeting when you are going
Councilor Kumar.
L.V.Pradeep
township. After the closure
to provide them their
In the meanwhile
of BGML the civil amenities Mr.Dass
salaries and then you can
Chinasavari
"V provided by BGML were municipal president made a
continue the meeting till
THE STAFF OF stopped and inhabitants of project report to solve the then I will not allow the
i BGML have been deprived water problem of BGML
meeting to continue”. He sat
THE KGF
of many basic needs even area. He proposed to build a
on the floor in front of the
UPDATE CAN • the ■ Bethamangala
mini dam at Nagavaram lake
City
Municipal
supply
was stopped
by
the- at the cost of 50 lakhs. The
Commissioner
Mr.
......
*'
**
*
BE MET
, Bethamangala
authorities KGF CMC asked for the
Chandrappa and protested,
EVERY
stating that BGML has a due agreement money from the
along with him mining
of Rs. 6.5 Crore to them.
councilors
BGML management so that
WEEKDAY
colonies
After the closure of they (CMC) can begin their
Mr.Shiva
Mr.^Wilson,
BETWEEN 9-30 mines the Sanitation worker work
but
° ECML
BGML
Babu,
Kumar
(alias)
AND 12 NOON stopped, cleaning the BGML management refused to pay Mr.K.C.Murali,
Joyce
I* ’P f •
ii
' area stating their salary was the agreement money stating
and
Inbarani,
Sarala
not paid by the BGML from that the central govt, had not
Mr.Dayalan also sat down
on the floor and joined
ADVERTISING
Kulasegaran in the protest.
RATE LIST
Immediately city municipal
. president
Mr.Das
Rs. 20/- ’ per column
Chinnasavari
and
the
centimeter according to the
commissioner
municipal
variable size of your Advt
discussed
Mr.Chandrappa
Rs.460/- : 1/8 Page
the matter as to what to do,
Rs.960/- : Quarter Page
they have
and then
j ^Rs.1860/-: Half Page
on
announced
that
•! 1*5.3750/-: Full Page
November 1* 2002 two
Rs.
100/- for an)’
months salary will be given
' noncommercial Readers
to the employees and in the
adverts of reasonable size
mean time they will discuss
only.
this
matter with
the
Rs. 50/-: Tfbr reader’s
I
Government
and
then
they
classified adverts.
- GUTTERS BLOCKED WITHGARBAGE
will say when the rest of the
Note-, advertisement on the
amount will be issued.
September 2001. So due to given any money to them.
Back Page will be charged
to this' Mr.Das
On 29th October
this agreement between Due
50% extra. ,
2002 a letter has been sent to
BGML Chinnasavafi stopped his
and
SPECIAL OFFFyR 4 , CMC
KGF
MLA
........ 1 (ho BGML project work duo to shortage
the Municipality KGF from of
Rs. 200/- for Front Page, .........
management
Mr.M.Bakthavatchalam, the
of money and even the
Govt,
of
Karnataka
stating
7

people
were
happy
that
-Corner Panels
mining colony sanitary and
salary for water supply
that at any cost the KGF city
Births' Deaths and Person CMC will solve their water
water works employees
sanitation
workers
were
not
municipality
should
not
Missing will be printed and sanitation problem. The
blocked
the
Soorajmul
spend any amount to BGML
CMC councilors of BGML paid from February 2002.
free.
But still the casual
colonies. This letter was sent circle, Robertsonpet KGF
Photo will be charged for.
area removed the old iron
and staged aa dharna
by Directorate of Municipal
By Advertising in our News pipes/motors and reinstalled labourers were working at
the
the
city
areas
without
Administration Govt, of demanding
Paper you can efficiently plastic pipes. But public mining
municipality KGF to pay
salaries
expecting
they
will
get directly into contact alleged
Karnataka
when
the
KGF
that
they
with
your
potential (Councilors) removed old be paid by CMC. And on 9th
UPDATE asked Mr.Das that their salaries as they have
been working in the mining
customers right here in metal pipes installed by October 2002 when a city
you have agreed in the
areas for more than lu
KGF and Kolar District. Britishers and reinstalled municipal council meeting municipal meeting to pay
months without salaries.
Our rates are absolutely poor quality PVC pipes and was held at municipal
two months salary but you
Immediately the message
the lowest you will find sold the metal pipes for huge council hall Robertsonpet did not do anything about it.
was sent to the Kolar
anywhere in the World.
KGF.
The
ADMK
councilor
amount and shared the
He (DASS) said “I have
Deputy
Commissioner
Rights for accepting or
and
standing
committee
agreed and wanted, to pay
Mr.D.N.Nayak
.. by\
rejecting advertisements money among themselves.
chairman
Mr.Kulasegaran
,
These works were
the workers •from the •. Robertsonpett
circle
are reserved and are the
stood
up
and
said

the
Mr.Puttamadiah
inspector
discretion
of
this 'led by Marikuppam area sanitary and' water works municipal* amount' Rs.' ’ 7
Councilor
Wilson,
lakhs which I have separated
the
protest,
regarding
' newspaper
employees
of
the
mining
^Champion
Reefs
area
Reefs
but
the
municipal
contacted
Mr.D.N.Nayak

STAFF
EDITOR

t-

r

I.

2
commissioner
Mr.Chandrappa
did not
agree with me to pay the
salary and moreover the
commissioner said if the
govt, gives me an order to
pay 1 will proceed. So
immediately 1 have written a
letter to the Govt, of
Karnataka Directorate of
Municipal Administration
requesting to pay the salaries
to the water and sanitary
workers of BGML. And I
have received a letter from
him stating not to spend
even 50 paise”. 'When the
KGF UPDATE asked what
is the situation of the
workers as they have
worked for 10
months
without salary Mr.Das said”
I wrote a letter on 30-102002
to
the
BGML
management asking them to
pay Rs.50 lakhs immediately
to pay the salaries to the
casual labourers, and if not
the municipality will stop
the maintenance of water
supply and sanitation from
04-11-2002”.
On
11*
November 2002 KGF MLA
Mr. M .Bakthavatchalam
staged a dharna in front of
Suvama Bhavan Oorgaum
KGF demanding the BGML
management to pay Rs. 50
lakhs
to
the
city
municipality Robertsonpet
KGF according to the
agreement and again on 12*
November
2002
at
Robertsonpet Gandhi circle
the MLA sat down on the
road and protested to pay the
said amount. So the acting
Managing
Director
Mr.Sampath Kumar sent a
message to the MLA stating
that the BGMI. management
is paying Rs. 12 lakhs for
the time being and regarding
this he (Sampath Kumar) is
discussing the issue with the
higher authorities at Delhi.
On 13* December 2002 at
11: a.m under the leadership

id

' ■

■ J

1

The Lord shall be unto thee an everlasting light.

i|M|g

Isaiah 60:19

]

JANUARY 2003

KGF UPDATE
the good things, and action
toilets do not keep their door
Bangarpet
Tahsildar
on corruption, who are
and windows open. The
Mr.Y.B.Krishna and asked
people of BGML area go to
involved irrespectful of
him to speak to the MLA
fields and to the Cyanide
their post, and daring
and settle the matter. So,
dumps to ease themselves.
publication in your news
Bangarpet Tahsildar rushed
The worst suffers are the
to KGF Robertsonpet at
papers. Many of your news
women folks who have to
1:30 p.m. the KGF MLA
items have reached the
wait till nightfall to go to
explained the situation to the
State
and
Central
ease themselves near the
Tahsildar, immediately the
Governments. Keep it up in
bushes.
Tahsildar spoke to the
;your future ^days also.
The unbearable foul
Deputy
Commissioner
Further we request you to
smell of garbage, gutter and
through
telephone
and
kindly
extend
your
assured the MLA that the toilets are increasing day by
valuable co-operation to
salaries will be issued to the day. The fear of epidemic is /
the citizens of KGF for the
workers. Later the MLA growing in the minds of the'
betterment
and
public.
They
are
alleging
spoke to the workers and
improvement of our city
that 14 councilors have been
withdrew the dhama.
which remains in your
When
KGF elected from the BGML area
hand.
alone
but
the
municipality
UPDATE
contacted
We assure our co­
Mr.K.C.Murali councilor for does not bother to clean the
operation and extend all
mining area (Champion BGML area, that they used
our help to you to achieve
reefs) and asked him that the : the BGML peoples vote to
become councilors, but now
casual labourers
were
our goal jointly and firmly.
stopped their work at mining they arc not bothered.
We pray to God
When contacted by
areas as they have not paid
Almighty to give you a
their salaries and what is the the PRESS they alleged that
brave mind, good health
present situation at the the municipal commissioner
and wealth and better
Mr.Chandrappa
is
very
mining
area.
He
improvements in your life.
irreguiar to office and even
(K.C.Murali) said the pul
With kind regards
toilers
oilers have been filled and
a
if he comes he looks drowsy
and best wishes
started to overflow and they and does not give a proper
*■ (A.POONDIRAJ)
collected 2 rupees from each reply to the public. When
Gen.Secretary.
house and then cleaned the the
KGF
UPDATE
Janata Dal (S)
toilets. This happened 3 to 4 contacted him regarding the
times and how many times BGML CMC agreement he
they themselves have to did not give any proper
clean. The city municipality answer but he said “1 am not
have agreed to pay the responsible
for
the
salaries and foiled to do it agreement made between
At the Bethamangala Fisher
and are blaming the BGML CMC and BGML”. At that
Department complex tank
management It is the duty time
the
municipal
the dead body of an
of the city municipality to commissioner
was
approximately 80 yr old
pay the salaries every month Mr.Ramappa and not me. He
male wu found on 29‘‘,
and then collect it from said that ho refuses to
December 2002. He was
BGML management
answer any further questions
wearing a white shirt and a
So from the month from the PRESS because he
white dhoti. His name and
of September 2002 the has to get permission from
address are not known. The
sanitary workers stopped his higher-ups to talk to any
body was sent for post
working, stating that their one. There are widespread
mortem to the Bangarpet
salaries for the past 8 allegations that he is
Govt
Hospital
and
months were not paid and absolutely
uncooperative
Bethamangala police have
due to this the BGML area and arrogant with the KGF
registered a case and further
was not cleaned, mountain public.
investigation is going on.
heaps of garbage’s can be
Nearly
around
seen all over the area which I 70,000 people of the BGML
TWO DAYS
emits foul smell throughout area are living in the fear of
WORKSHOP
the BGML area gutters are 4 epidemic
due to the
blocked every were and uncleanliness of garbage,
FOR SCHOOL
even garbage is mixed in the gutter and public toilets,
DEVELOPMENT
gutter water. Due to this the Previously BGML Hospital
On 10th and 11* December
gutter water overflows into was there for the families of
2002 a two days special
residential areas and in the BGML employees but even
workshop for the school
middle of the road emitting that has been closed and in
development
and
an unbearable smell. The the Govt/ General (Civil)
maintenance
committee
BGML toilets are in the Hospital there are not
(SDMC) was conducted at
most unbearable conditiop. sufficient doctors to treat
Cluster Resource Centre
Toilets have not been patients if their is an
(CRC)
KGF
by
the
flushed with water and epidemic.
education department. The
cleaned for the past several
workshop was attended by
Letter to the Editor
months and due to this the
KGF
circle
school
toilet basins are overflowing
Happy New Year
development
committee
with filth and excreta and Sir,
members (Social workers,
even the toilet pits are
On behalf of our
parents, volunteers of each .
overflowing, no public can party and KGF citizens we
school
locality
are
enter inside these toilets wish you a happy and
members);
even if they are in a hurry to prosperous New Year
The programme
ease
themselves.
The 2003.• We appreciate your •
was conducted by the DEEP
residents who live near the
Co-operation in publishing

UNKONWN
BODY
FOUND

He that cometh to me shall never hunger.

I am the way, the truth and the life.

]

3
(District Primary Education
Programme) Co-ordinator
Mr.M.Bellarappa,
Block
Education Officer (BEO)
Mr. S. Padmanaban,
education
Co-ordinator
Mr.B.V.Babu
Janardhana
Naidu and Sumithra CRC
Co-ordinator.
The
education
department office bearers
explained
the
responsibilities of SDMC
members , in developing the
schools.
Mr.S.Ramamurthy
of CRC welcomed the
gathering
and
G.S.Shanthakumari rendered
vote of thanks.

EXCHANGE
PROGRAMME
On 12lh December 2002 an
International
Youth
Exchange Programme was
held at Sri Lanka by
Rotaract
club.
Various
Rotaract club members from
Asia were invited to
participate. From India 4
members have participated
i.e two persons from Goa,
one person from Maharastra
and one from Karnataka

CASH
STOLEN
On 18th December 2002,
Prasanna Kumar of Dooddur
Karupanahalli village was
carrying Rs. 1,60,000/- in
cash in a bag and was taking
the bag to remit it to the
agriculture producers and
marketing
committee
(APMC) at
Bangarpet.
When he was proceeding
near the P.W.D office at
Bangarpet some unknown
person threw chilly powder
on his face and immediately
snatched the bag containing
the amount from him and
fled from the scene.
Bangarpet
police
have registered a case at
Bangarpet police station and
further investigation is going
on to nab the culprits.

Mr.Raju from Rotaract club
of
represented
KGF
Karnataka.
programme
The
was held for 15 days and
was organised to enlighten
others about the culture and
traditions of each country.
At the programme it
was discussed to organise a
project
on
“Aids
Awareness” for the year
2003 in the entire area of

FREE EYE
CHECKUP
CAMP

AYYAPPAN
JYOTHI

On 7* December 2002, a
free eye checkup camp was
conducted at the KGF City
Municipality
Auditorium.
The free eye checkup camp
was organised by the City
Municipal
president
Mr.Dass Chinnasavari.
Doctors
from
Agarwal
Hospital,
Bangalore had participated
in the camp, many poor
patients from all over KGF
attended and had their eyes
checked.
Mr.
Dass
Chinnasavari had arranged
vehicles for the patient’s
conveyance
and
many
patients were given free
spectacles.

INTERNATIONAL

ROTARAC TER RAJI'

Asia.
delegates
Other
have come from Hong
Kong, Singapore, Malaysia
and Texas in USA.

On 14th December 2002 an
Ayyappan Jyothi function
was held in a very grand
manner at KGF. The jyothi
(light)
procession
commenced from Prasanna
Venkataramana
Swamy
temple, Dr.Rajkumar Circle,
Parandhalli
road.
Sree
Ayyappan temple, Vivek
Nagar,
Geetha
Road,
Soorajmull circle, Gandhi
circle, Pritchard road and
culminated at Ayyappan
temple. Hundreds of women
devotees had participated in
the jyothi procession. Every
year at January 14th the
Mahara Jyothi is held at
Ayyappan
temple
at
Shabrimalai, and one month
before that the procession is
taken out at KGF.

YOUTH
John 6:35

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dwellers homeless. He said that before the closure the company provided all the basic necessities
but now everything has stopped. The problem of the workers also increased many fold when
the affected didn’t get any alternative jobs. Mr. Babu told the people present there that all the
18 trade unions there have registered their protest against the violation. He finished by saying
that “Women of Kolar field who have given gold to the world now do not have gold for their
MANGALASUTRA” and asked for mm&P’s help & support^

,
‘S
k
T8 illUmini'e in it
is ^ioactive, though Government
d S, mt‘TobUt 11 *S 5,111 Illega'ly mined- Mr- Rayan added that people organized
v^nt and.P,r0,“ted- “e even nanated the incident at Perumandal village where police turned
violent and beat up the members of his group including Mr. Rayan. This happened when
people were peacefully demanding the release of their colleagues.

Mr. Mahesh Lakhera, Academy for Mountain Environics, Uttranchal
Mr. Lakhera, straightaway pointed his fingers towards the corrupt officials by saying that
Kataldi village is the best example of corruption. He said that his village has become the victim
of limestone mining and the nexus between the mining, politicians and bureaucrats is ruining
the village resources. The villagers who opposed the mining have been charged with false
cases against them. The poor villagers are unable to fight such cases levied against them and
seek mm&P’s help. Mr. Lakhera added that if the present trend continues the village will be
extinct. He informed the participants that the mining is done in the Van Panchayat land that
spreads across thirteen acres. But the map presented to the government doesn't show the
existence of Van Panchayat and the villages. In his concluding sentence he said “Save Himalayas
to save the environment in India.”

Mr TSS Mani, Human Rights - Tamil Nadu Initiative, Tamil Nadu
tha‘ n° bUSintSS 15 Pr°fl,able in their area exceP'sand mining, as the
r verherfs
df
WhlCh 'iCenSeS haVe been issued for mining near
mafia an i ‘aTjPor)Constn!c,1°n PurPose^
mining industry, he said, is controlled by the
for rev r
,Ven
(D1StriCt ReVenue Officer) was beaten up by the goons
forregistenng a complaint against sand mining. He informed that the Tamil Nadu Women’s

to theCcoVmeneren.Wef

°rdered ‘he DiStrict CoIlector t0 lo°k in

and

Z heZ 7
WOmC;S C011eCtiVe'1116 DC Started the investigation but most of the
time he would never listen to them.

Mr. Rajendra, Society for Environment, Education and Rural Development, Uttranchal
Mr. Rajendra highlighted the issue of soapstone mining in Almora and Pithoragarh districts of
Kumaon region. He said that in 1996 a study was conducted on soapstone mining but the
report of the study was never made public, though they asked for it several times. He said that
the mining companies adopted different methods to resist people from going against them,
sometimes they try to bribe them and if this failed they even threatened the villagers all in an
attempt to fulfill their own selfish motives. They even tried kidnapping their leader in Haldwani.
He again said that the government didn’t care for the environment and gave the example of
their negligence towards the environment by stating the name of a Canadian firm. Pebble
Creek, which was been given the lease in Hashkot region to do mining of copper and gold. This
company does not have a very clean environment record. Further he stated how the contractors
were exploiting the local villagers, by buying limestone at the rate of Rs.2 and selling the same
for Rs.20.

are on the verge of extmct.on; even fishes are dying due to these disposals. He informed the
participants that in other countries the businesses of these chemicals have been banned He
also accused Sterhte of buying the politicians and jeopardizing the movement against them
IlZ
r" PreSSUr‘Zed ,he bish°P of that area ‘hut the movement can sto^. Mr. Mani
to sZfo h TZ
8 Sh°Wn St3r TV the C°mpanieS arebusy acclulrlngland
fisher folks sh^lZ8 bUS;neT He concluded his Presentation by demanding that the coastal
fisher folks should be declared as sea based tribals.

Mr. S. Rajbabu, Kolar Gold Fields People’s Movement, Karnataka
Mr. Rajbabu started his presentation by giving a brief background of Kolar Gold Field (KGF)
He said that in 1880, one Mr. John started the gold mines. These were the oldest gold mines
and were shut down on 31» March 2001 rendering 32000 unemployed. Most of the affected
Andbra PradeSh 3nd Tami‘ Nadu' He lnformed ,he Pa«iciPants that so far
o e than 6000 miners have died in the mines. He also said that the retirement benefits were
inadequate and recently 3200 workers were retrenched. He then discussed the plight of the
KGF workers and said that after the closure of KGF their township collapsed rendering the

Mr. Kunal Deb, Uthnau, West Bengal
Mr. Kunal giving the background of the present movements said that earlier in the movements,
violations of the rules and regulations (law) was the mode of operation of any movement but
now the situation has changed and at present movements all over the world are calling for
obeying ihe laws which the government implements. Kunal raised the issue of stone quarrying

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o

K.-. .F -PEOPtLS LIBERATION f'lDVEi')E\T
STUDY REPORT
IN GOLD HINING AREA AFTER CLOSURE OF BGML.
J.TUDY
1.

REPORT BY P.SUjAI RAO

BOHL.Mines was closed witn Qffect

from

BABU,^

1.3.2001.

2. From 1.3.2001 to till thers is no salary disbursement
to the SGML.Employeas.
3. Under the Administrative of BGML.i’lana ^ement, BOHL
Hospital and uispensaries were closed oown.

4. BGML. area sanitary ano water supply system was completely
stoppea. Later the same was hand over to the City
Municipality ? ror maintenance of the same.
Due to non allotment of fund by the State Government
the Municipality Authorities stopped the maintenance
Uater supply and sanitation works in SGML.Areas.
5. Due to financial crisis 6 to 8 ^DSrQ^school students
were forceabily stopped by theri parents in each anc
every colonies in BGML.Area.
6. 5OA of the school students werei not able to pay their
mtonthly Feas to thair respectiva schools.
of' tho parents would like to provide
7. The most imajoirty
w
studies upto 3SLC to their children and arter oassino. c
.
y.

failing the said students were sent

for temporary

Due to the above effects the KSr.is
for Child employment Centre-

became a centre

jobs.

9 s ■r, .'i ny
In the accidents of mines and silicosis d 1 £• t?

.f?
ti';
emoloyeds were lost their life so uhftf.y.•
witnows increasoo cons - '• a i ably o
r
maintained their families by the way of po^ty ar*up I).i:u
Selling of eataules, vegetables etc. i n t n e i n t a n 1.1 u r *
to save their children* ^ovj oua to non payment to the
□GML.employees purely depend by these widows tj e r e
blinking to save their children.

Inspite of the bud situation of K^G.r., said widows
are working as a nouse servent, labourer in ^cul-pitcs
t ree depots etc., ano sending their young male aplL?
female children to work at Malur and other short rf 1 stanco
places just to save their families.
9,

to non payment to BGi’lL.employees salary fully necenued
the Ant op Lckshau dr.iv^rs spa onv? •'u’lor-u
it ‘‘is reduced to 65>.
Most of the aut or U.-:shuriv-rs
sieeducated and unemployment problem the: tvyed to ‘earn
oriving of au-orickshaw for their lively hooo»»

uue

K.G.F- Bossiness is totally dead., since 24 crores of
SGML.Employees salary was blocked triereby there is no
bussiness at all since 2 years.

H - ’3'5^.



>

/

2

i
I

I

10.

in K.G.F. there is 1000 numbers of Degree holder
in Different groups.

11.

Diploma holders, National Apprenticesship ano ITI
holders are at present 18,000 Nos.

12.

SSLC Passed - l%le and Female strength is 8,700 Nos.

13.

SSLC Failad - Hale and Female strength is 13,000 Mos.

14.

Bangalore - K.G.F. Daily Travellers strength 8,000 Nos.

15.

Karnataka Small scale industry at Muskam, last 8 yrs
back about 1200 workers were employed and 41 units are

in running.
L
At present only 8 units are running due to New Economic
Policy.

- “ - , was set up for the peoples of
BEHL. Factory in K.G.F.
3 and
65/
*
— q of other
K.G>F.
IUhereas
_______ 35>
Ilf of K.ij.F. workers

16.

employment chance.
District and state persons were Lgiven
.
7,,v»
The Vww..
Youngsters wereJ in the ambition to join in the
BEML.Factory, finished their ITI and MAC, crossed their
age 40 yrs. and above, but no employment in BlML,K.u.F#
which is provided ror the peoples or K.G>F.
The youths whc born in K.G.Faulty ate fully belongs to
These
were getting
temporary
SC community.
------- youths
,
7
.z
. 4.

17.

jobs in Bangalore only in the entire State ot narnatana
thera is no job opportunity to them ano which is wantedly
boycot by the casteesm officials or Karnataka.
120 years of gold mining life 6000 employees I°st L’leii
life in various accidents ano yeilc more than 800
‘ of gold at the cost of Rs. 45,000 Crores.
Now the K.G.F.peoples or having their one time meals as
againxt three times per day.

Due to non payment of BGHL.Employees since 1^ months, •
workers -were starved for food and much worries 29 BGi’lL.
workers lost their life but there is no any action from
the Government#
Ex.Employees of BGHL who were attacked by Silicos .nd
finding Difficult for their treatment since the BbiiL.
Hospital was closed uown ano these patients are blinking
in the street without any treatment any ehre.
There is 10 LacrTons,of cyanide dumps are deposited
a round K.G.r# during heavy winu these cyanide muds are
occupy most of air and became air pollution throughout
K.G.F^ Apart from this During rainy seasons these cyanide^
muds mix with the rain uatar ano passing on all the cultivated
land and spoiled the growth of any kind of plants in the

cultivated rieldd.
Old shafts which was abanded are kept open in the
dwellings areas - No any .action to cover or sealed the
area by the dGi’it .••ianayement which is dan. ger to any -ivss.
After all these problems HX facing by the peoples or K.b.F.
there is no any action from Local Party/in the power of
n; , i'lLA/ota.eiU^-t Government or Central Governments.
i'

3

total k.g.f.population

.. &.1^cco

total k.g.f.voters
i’HNING AREAS - 4 Divisions

MARIKUPPAM

1. ’A’ Uost Block
n
2. S ou t h
3. C.A.
4.

•A’

37.

Cracxers model house

tl

38.

Battlers

II

j9. Smith Rond Qrs.

n

5. Old B'

7. Carpenters M
8.

20th Model house

9.

2 P.O.

Block

10. I.P.O.

ti

11.

R.O.

15.

5a>t

"
line

16. Model house
Drivers

line

line

18. Revitters

19. Andhra

line

20. Aoove Bazaar Block
21. Cyanide line
22. Cricket block

23. Honcocks block

24. Stable block
25. Uatchman line
26. F rank & co.

27. riission olock
North Gilberts

2

Sau mill line

2

2. C.

w

3. 0

II

A.Tila

block

n

6. Coston block
7. rialayalfce

3. Gosha

line

line

9.

f.

Block

10.

G

ii

11. H

ti

12.

I

it

13.

K

it

14.

N

it

15.

3

it

16. 5

ii

17. i'l

ii

u

18.

P

19.

0

ii

20. H

n

21.

Hospital

20

South Gilberts

22.

Telugu block

23.

Siv ipaj

ntsgar

24.

Alberts

jquare

25.

L Block

26.

Married qrs.

compound

ii

31. Malayalee line

32. Krishnagiri line
33.

I

B. Block

5. C.Tile

U.

30.

r eef

II

Neu Quartine n

1

1jt

4.

13.

29.

CHAMPION

II

Chellies

12. Cox

17.

line

40.

ti

6.

28.

36. Sunnambu line

Pancaram line

34. Mysore hall urs.
Itelian Mess qrs.

27 . u. file block
28. Gosha line (Upp:Lemetry)

• w. 0L OC(<

president Harish Babu and Secretary AA Y Khan are seen.

on M

Fake naxalites held
in Pavagada taluk

i

t
1

Pavagada (Tumkur dt), dhns:
They were suspended from
Pavagada police have arrested 4 that faction later for their befake naxalites who were al- haviour, police added.
legedly trying to steal rifles on
They had planned to steal
Monday night.
the rifles and get money by sellThe arrested have been iden- ing them, it came to light after
titled as Obanna, Narasimha, interrogation. But it is said that
Pathalingappa and Narasappa. they were not connected with
They had hatched a plan to the theft of rifles.
steal rifles from Talavalli
Sources said they had
Kerekodi in the taluk, police camped in the taluk from a few
said.
days back to steal rifles. They
FoUowingt^^finitftlijrifQr- tfcdd^isuA activities had been
mation,
' >DorteS*v|^y^eir arrest.
Inspector Krispharfaandtiiefr
Further’ inv&tigations are
team conducted an operation on under the guidance off Suand arrested the accused.
|eri|^endent of rPolice PMuThe accused, earlier associ­ ^jis/aip^, Addkfonal Superinated with the People
. ’s War LWraeiit jf Police Sudhakar
Group (Ganapathi faction), be- Hegde and Deputy Superintenlong to Andhra Pradesh.
dent of Police Hoogar.

BGML worker commits suicide
Koi^ar Gold Fields, DHNS: A cial benefits after the closure of
Bharath Gold Mines Limited the company forced him to end
(BGML) employee committed his life.
suicide by hanging himself
He also noted that he was
here on Thursday
distressed as he was unable to
In a suicide note, the de- meet the family expenses and
ceased Raja (45), a resident of fees of school children as the
Uncocks Block of Champion government has not finalised
Reefs, explained that the long the VRS scheme and hence, he
delay in settlement of his finan- could not get benefits.

HEART DISEASE

Avoid Anffiopla^y, Angiography & Bypass Surgery I

-jJOOO Patiems success fully treated » 20 Lacs more beneHtted |
how much exercise, what medicines, what is wrong w ith
.....wv; T ”/''
“vn“ u‘^«ibc.' ftjiow an uiese iron) Dr

*
author. Spend two hours. Entry Fee Its.20A Mhi-ta0lls
■ Vijaya Nagar: Sri Jagajyothi
Cross, lltli Main, IV Block on
Basaveswara Kalyana Kendra
18thOct..(Mon)at 5:30 pm
No. 105. 17th Cross (near Tele. ■ Mysore : The Institution of
Exch ). Magadi Chord Road on
Engineers (India), J.L.B. Road on
16th Oct.. 04 (Sat)at 5:30 pm
19th Oct, 04 (Tue) at 5:30 pm
■ Malleswaram: Gokhale Hall. East " Quan’s Road: Institution of
Agricultural
Technologists, No. 15
Park Road, lltl) Cross on 17th Oct.,
*

~
Millers Tank Bed. Queen's Road on
04 (Sun) at 10.30am
20th Oct., 04 (Wed) at 5.30pm:
■ Indiranagar: East Cultural
Association Club. No. 8. 100 Feet
Road on 17th Oct.. 04 (Sun) at
5.30pm
■ Jayanagar: Pai Vijay. 530/58,33rd

He will also conduct a 3 day g
workshop for heart patients from 23rd |
to 25th Oct, 04. Lecture VCDs & «
other material available at the venues. |
5

Cont: Mrs Ramani/Ajay : 36736554 (Mo) Tel: 56993797,23462869



SI 5-0

president Harish Babu and Secretary AA Y Khan are seen.

Fake naxalites held
in Pavagada taluk

i

t
i

Pavagada (Tumkur dt), dhns:
They were suspended from
Pavagada police have arrested 4 that faction later for their be­
take naxalites who were al- haviour, police added.
trying to steal rifles on
They had planned to steal
M°nday night.
the rifles and get money by sellarreste<i have been iden- ing them, it came to light after
tjfied as Obanna, Narasimha, interrogation. But it is said that
Pathalingappa and Narasappa. they were not connected with
They had hatched a plan to the theft of rifles.
steal rifles from Talavalli
Sources said they had
had
Kerekodi m the taluk, police camped in the taluk from a few
said.
l_
‘ to steal rifles. They
days 'back
Fonowin^apfinitfWg&rsuA activi
activities had been
mation, Insp^t<5fealleSi2^-*>MrWvIfii|iheii
leir arrest.
Inspector Krispnappa and theft'
Furtb^^im/^>1stigations are
team conducted an operation on under
und^r the euk
guidance off Suand arrested the accused.
lerinfendent of ^Police P MuThe accused, earlier associ­ jis/aTO AdtIdtffonal
.......... ...Superinated with the People’s War ______
twflaent of Police uuunanm
Sudhakar
Group (Ganapathi faction), be- Hegde and Deputy Superintenlong to Andhra Pradesh.
dent of Police Hoogar.

BGML worker commits suicide
Kolar Gold Fields, DHNS: A cial benefits after the closure of
Bharath Gold Mines Limited the company forced him to end
(BGML) employee committed his life.
suicide by hanging himself
He also noted that he was
here on Thursday.
distressed as he was unable to
In a suicide note, the de- meet the family expenses and
ceased Raja (45), a resident of fees of school children as the
Uncocks Block of Champion government has not finalised
Reefs, explained that the long the VRS scheme and hence, he
delay m settlement of his finan- could not get benefits.

heart disease

Avoid Angioplasty Angiography & Bypass Surgery
^7iQQQ Pa!ienrs succe$sfulfr Heated • 20 Lacs more benefifled
modem

T*1-.

mUch exercise’what m^'cines. what is wrong with

author Spend two hours. Entry Eee Rs.20/special!st &
■ X ijaya Nagar: Sri Jagajyothi
Cross, lltli Main, IV Block on
Basaveswara Kalyana Kendra
18th Oct., (Mon) at 5:30 pm
No. 105. 17th Cross (near Tele. ■ Mysore : The Institution of
Exch ). Magadi Chord Road on
Engineers (India), J.L.B. Road on
16th Oct.. 04 (Sat) at 5:30 pm
19th Oct. 04 (Tue) at 5:30 pm
■ Malleswaram: Gokhale Hall. East ■ Queen’s Road: Institution of
Agricultural
Technologists, No. 15
Park Road, 11th Cross on 17th Oct
p <•1■
V
■ v* ■ .
^’,.leIs Tank Bed’ Queen’s Road on
04 (Sun) al 10.30am
20th Oct,, 04 (Wed) at 5.30pi>m;
■ Indira nagar: East Cultural
Association Club. No. 8. 100 Feet He will also conduct a 3 daylg
kBM 'll.. J
Road on 17th Oct.. 04 (Sun) at workshop for heart patients from
23rd
5.30pm
to 25th Oct, 04. _____
Lecture VCDs & 8
■ Jayanagar: Pai Vijay. 530/58,33rd other material available at the venues, |

Mrs Rai

'36554

1:5699:

r, 23462869

EOi
(3, »vA

-aA o

-ffW-o «0

Cown

Gorv-,

BGML

INDEX
1.

PREAMBLE

2.

CLOSURE IMPLICATIONS

3.

SWOT ANALYSIS

4.

SUMMARY OF THE PROPOSAL

5.

GOLD FROM MINES

6.

GOLD FROM TAILINGS

7.

WORKSHOPS

8.

PROJECTS

9.

WAGON MANUFACTURING

10.

POWER (ELECTRICITY)

11.

CLOSURE vs. REVIVAL : IMPLICATIONS

12.

WHAT LED TO DECLINE

13.

GOVT. ARGUMENTS FOR : A REBUTTAL

14.

ORGANISATIONAL SUGGESTIONS

15.

THE UNIONS

16.

BIFR OBSERVATIONS : A RESPONSE

17.

SOME QUESTIONS FOR BIFR & THE GOVT.

18.

SUMMARY OF PROPOSALS

02 MAY, 2000

f
BGML

PREAMBLE
This report is not an appeal for mercy for the survival of BGML
Instead, it outlines a plan of action with operational, financial and organizational
suggestions to restore glory to an erstwhile proud, world-class company in mining
and extraction of gold, and take it towards pre-eminence in the industry.

And restore it we must, in the national interest. India has enormous reserves of
gold, with geological similarities to South Africa and Australia. They just lie there
unexplored and untapped. Besides an enlightened Government policy, it will need
skills and experience to extract gold, as much as possible, to counter an everincreasing drain on foreign exchange. It is possible, in the foreseeable future, that
gold imports will be the largest component of India's imports, even exceeding crude
oil.
BGML, despite serious depletion of skills and resources, still has the critical mass
to live upto the country's needs.
There have been gross errors of policy and judgement, and acts of omission and
commission, since nationalization of BGML to bring it close to its closure today, with
serious consequences for India, and for about 2 lakh people of KGF. The purpose
of this report is not a witch-hunt into the past, however interesting it may seem to
many. An analysis of the past must provide lessons-do’s and don'ts - for the future.

Keeping these lessons in mind, the employees ( Officers, Supervisors and
Workers ) of BGML, with the aid of reputed technical and management consultants,
have prepared this actionable report, detailing plans for the next 3 years.
Profitability of a higher order will continue for decades thereafter.
The proposal not only employs the current work-force in its entirety but suggests
growth in numbers and skills and, at the same time, maintains good profitability.
Also it does not ask for any subsidy from the Government. Infact the financials of
this proposal will cost less than the closure of BGML, the operations, as outlined,
will contribute handsomely to the country's exchequer. It is requested that, in the
national interest-both human and economic-this report should provide the basis for
an expeditious, objective discussion, and prompt implementation.

The single key to BGML'S future success lies in an enlightened, experienced, and
participative management.
It is easy to close BGML. It will be virtually impossible to recreate another one like
it.

02 MAY. 20(X)

BGMl.

CLOSURE IMPLICATIONS
Closing down of BGML, as proposed by the Government, has the following
implications, assuming that all the employees exercise the VRS option.
01.

HUMAN ASPECT :

* Directunemployment,

4,000+ persons,

* Indirect impact on dependents and the
township of KGF,

2,00,000 persons,

02.

Payment of VRS by the Government,

Rs. 115 Crores,

03.

On-going expense of maintaining
skeleton services at BGML,

Rs. 2/Year.

04

WRITE-OFFS ( As of 31 3.2000 )

GOVERNMENT OF INDIA
* Plan Loan,

Rs. 81.08 Cr.

- Interest,

97.65

II

* Non-plan Loan,

103.15

"

76.96



- Interest,
* Penal Interest.
* Misc. ( IT, Excise, PF )

2.89

* Sundry Suppliers / Creditors,

7.45 “

Total,

02 MAY. 2(MX)

162.16 ”

Rs. 531.34.Cr.

3

y

BGML

CLOSURE IMPLICATIONS
* GOVT. OF KARNATAKA :
- Misc.
- Power Bill,

- Water Charges,

* GOVT. OF ANDHRA PRADESH.
HZL Loan.

- Interest.
NALCO Loan.

Rs. 31.37

' 18.20
0.77

Cr.

Rs. 3.21

ll

5.00
2.98

u

5.00

u

3.00

Employees / Ex-employees:
Litigation / Ex gratia.

24.25

02 MAY. 2000

II

Rs. 50.34

- Interest.

GRAND TOTAL.

Or.

Rs.625.12

II

bc;mi.

PROPOSALS SUMMARY
ASSUMPTIONS - FINANCIAL :

Treat the situation as if the company has been closed down
WRITE OFFS.

Govt, of India.

Rs. 531.34 Cr.

Govt, of Karnataka

50.34



Govt, of Andhra Pradesh.

3.21

H

HZL/NALCO.

15.98



Employees / ex-Employees
Litigation/Exgratia.

24.25

Rs. 625.12 Cr.

All assets of the company are written off to a book value
of 0 . Therefore no depreciation charges on existing assets
This excludes land.
Land to be owned by the Govt, but leased to BGML for 0 rent
for 10 years.
Karnataka Royalty to be waived for 10 years.
Shivasamudram plant transferred to BGML at 0 Cost,
and operated by BGML to satisfy its entire requirements of 25
cycle and 50 cycle power. Any surplus power to be converted to
50 cycle and sold to Karnataka at cost.
Unrefined gold to be sold by BGML at market price without any
interference by the Govt.

02 MAY. 2000

'J

BGML

ASSUMPTIONS : OPERATIONAL.

*

The core business of BGML will be gold mining. It will maximize
gold output from currently owned or leased mines, with due regard
to employment and profitability. Employment will be maximized as
long as the operation of a mine does not drop below the break-even
point.
The following ancillary businesses derived from the gold mines, or
in support of its operations, or an extension of its existing skills and
capabilities will be operated :






Extract gold from tailings,
Workshops,
Projects,
Wagon Manufacturing,

All the 5 businesses ( core + ancillary ) will operate as profit centers under
the umbrella of BGML. Besides bearing their direct costs, they will also
carry there fair share of the general / administrative overheads of BGML.

Any major investment by any of the Business Units (BU's) will require proper
justification and approval by the Management of BGML

The attached tables indicate a summary of employment, revenues, profits
and investments by various BU's over the next 3 years.
It will be noted that" Tailings " involve a large outlay of Rs. 24 Cr which is
not recovered within these 3 years. However, without any additional
investment, there is a recurring profit of Rs. 7.74 Cr. per year for more than
10 years. It is an excellent payback.

In the following chapters, there is a detailed description of each BU in terms
of its scope and various operational aspects.

02 MAY. 20(X)

BGML

SUMMARY OF PROPOSALS

MANPOWER

2001 -02

2000 -01

MINES

J______ S
1715
2156

2002 - 2003

D____ M_____
2567
2418

J_____
2774

S____
2774

D____
2774

M____ J
2774
2774

S______ D
2774

M_____
2774
2774

TAILINGS

30

30

110

110

160

160

240

240

240

240

240

240

WORK SHOPS

700

700

700

790

800

800

800

800

800

800

800

800

PROJECT

180

180

190

220

250

250

250

250

250

250

250

250

WAGONS

190

270

350

420

500

590

670

730

790

850

870

870

ADMN/ GEN.

1032

1032

1032

1032

1032

1032

1032

1032

1032

1032

1032

1032

TOTAL.

3847

4368

4800

5139

5516

5606

5766

5826

5886

5946

5966

5966

02 MAY. 2000

Os

BGML

SUMMARY OF PROPOSALS
REVENUES ( Rs. Or. )
2000 -01
(11 MONTHS)
MINES
TAILINGS
WORKSHOPS
PROJECTS
WAGONS
TOTAL

38.56
7.26
2.66
2 92
9.35
60.75

2002—03

2001 -02
56.70
32.83
5.00
4.94
18.20
117.67

56.70
43.74
5.00
5.00
26.00
136.44

BGML

SUMMARY OF PROPOSALS
PROFIT (Rs. Crs)
2000 -2001
(11 MONTHS)

2001 -2002

2002-2003

MINES

16.25

23.70

23.70

TAILINGS

0.76

6.33

7.74

WORKSHOPS

0.41

2.00

2.00

PROJECTS

1.32

2.47

2.50

WAGONS

0.88

1.71

2.44

TOTAL

19.62

36.21

38.38

LESS ADMIN/GEN.
OVERHEADS.
NET.

-15.49
4.13

-15.49
20.72

-15.49
22.89

02 MAY. 2000

BGML

SUMMARY OF PROPOSALS
INVESTMENTS ( Rs. Cr. )

2000 -01
MINES

2002 -03

2001 -02

(11 MONTHS )
5.00

8.00

16.00

WAGONS

0.20

0 50

TOTAL

13.20

16.50

TAILINGS

WORKSHOPS

PROJECTS

/6

SGML

BGML : SWOT ANALYSIS
STRENGTHS

1. Specialized skills and decades of experience in mining and gold recovery.

In
fact, BGML, through its Projects Division has been undertaking turnkey jobs for
other mines in India with a high degree of success and appreciation.

2. Dedicated
and muuvdieu
motivated workforce.
Many current worxers
workers ano
and managers are
ueuiudieu emu
wuiKiuice. iviany
third generation employees of BGML. There is a deep sense of attachment to its
success. Deep-level mining has its own hazards and difficulties. The workers
have, over the years, understood, experienced and mastered those hazards.

3. Proven reserves of nearly 3 million tonnes with a grade of 5.22 gm/tonne, which,
by industry standards, is considered to be very viable at current market price.
4. Tailings of 40 million tonnes accumulated over 120 years

The case for their

profitable exploitation has been clearly established for years.

5. Excellent infrastructure and support skills in various workshops which despite
depletion are suitable and sufficient to carry on mining operations as contained in
this proposal.

BGML : SWOT ANALYSIS
WEAKNESSES

1. Failure of Senior Management in understanding the potential of BGML and
developing the right vision and strategies for maximizing gold output through
w i new
explorations, introduction of latest technologies in all operations, finding ways to
minimize cost and improve profitability, and motivating the workforce towards
maximum productivity.

2. Lack of technical experience in deep-level mining at senior management levels.
3. Improper priorities in allocation of resources between the core operations of gold
extraction from mines and ancillary diversified businesses.

4. Lack of delegation of authority to Business Unit Heads of ancillary businesses.

02 MAY, 2000

Il
BGML
5. Inadequate attention to meeting commitments of quality and delivery in ancillary
businesses.
6. Multiplicity of unions with diverse affiliations and interests, causing lack of a
common focus on high productivity and worker welfare.

OPPORTUNITIES

1. To maximize output from proven reserves
2. To exploit gold reserves in KGF through new exploration

3. To expand its activities to new exploration in Karnataka and other States in India

4. To provide specialized services to other mines in India and improve their output
and productivity
5

At a later stage, to provide the same specialized services to countries outside
India, and earn valuable foreign exchange similar to RITES (INDIAN RAILWAYS)

6

To experiment with and apply new technologies and thus become a recognized
Center-of-Competence in its specialized skill areas

THREATS

1

Immediate threat of closure as a sick company

2. Continued lack of proper leadership at all levels and interference by the
Government without adequate technical expertise

3. Inadequate investment in new technologies, processes and equipment to
maximize output and improve productivity
4, Fall in the price of gold.

GOLD FROM MINES
PROPOSAL

1. Exploit the proven reserves in the mines as shown in the attached schedule
2. Gradually towards ultimate ore output and targeted productivity
3. Mechanization and introductions of technology at an appropriate time depending
on the level of investment required and the payback.
4. Gold will not be refined to 24 carats but sold “as is’’

5. No marketing expense on gold

02 MAY, 2000

IX
BGML

6. New exploration to be planned out indicating resources required.

7. Identify current pilferage of gold and means to eliminate it.

I

02 MAY, 2000

'

BGML

GOLD FROM MINES
MANPOWER
2000 -01

A

ND: STOPE

M
966

J
974 '

ND: EXP/DEV
CG: STOPE

563

591

CG: EXP/DEV

J_
982

A___ _ S__
996
989

0__
1003

N___
1010

D__
1017

J__
1033

1050

M_
1067

A__
1067

___

33

67

100

133

167

167

167

167

167

167

617

643

668

692

715

737

759

781

801

801

33

67

100

133

167

167

167

167

167

167

159

168

176

184

192

200

207

224

240

240

108

116

120

125

130

131

125

125

125

2042

2156

2265

2376

2418

2464

2514

2567

2567

MM
OB

140

150

OR

TOTAL

1669

1715

1824 I

BGML

GOLD FROM MINES

RECOVERY OF GOLD ( Kq/DAY )
2000-01
A
ND:STOPE

F

M

A

1.295

1.330

1.365

1.400

1.400

.125

.125

.125

.125

.125

.125

1.350

1.440

1.530

1.620

1.710

1.800

1.800

.120

.150

.150

.150

.150

.150

.150

J

J

A

S

0

N

D

1.050

1.085

1.120

1.155

1.190

1.225

1.260

.025

.050

.075

.100

1.080

1.170

1.260

.030

.060

.090

ND: EXP.DEV
CG : STOPE

J

M

.900

.990

CG. EXP DEV

.150

MM

.140

OB

.158

.175

CR

RECOVERY
Kg/day
Kg/MONTH

.193

210

.228

.245

.263

.280

.315

.350

.350

.113

.135

.158

.180

.203

.225

.225

.225

.225

2.090

2.233

2.430

2.741

2.960

3.181

3.400

3.566

3.730

3.890 '

4.050

4.200

52.25

55.83

60.75

68.53

74.00

79.53

85.00

89.15

93.25

97.25

101.25

'05

Kg/YEAR

856.79

1260

REVENUE/
YEAR (Rs. Cr.)
COST/YEAR
| ( Rs. Cr. )

38.56

56 70

02 MAY. 2000

22.31

33 00

BGML

GOLD FROM MINES

INVESTMENT ( Rs. L.) 2000 -01
___________ A
ND: STOPES

A

J

J

M

D

N

0

S

5

47

30

25

11

ND: EXP DEV I

.5

.5

.5

5

CG: STOPES

103

35 5

23

56

3

CG: EXP DEV

.5

.5

.5

.5

.5

.5

10

10

10

______________ _!

MM
OB

50

42

12

OR

9.25

6.25

6.25 :

.75

TOTAL

210.25

114.25

67.25

68 75

18.50

10.50

10.00

TOTAL

210

114

69

19

11

10

____ L
(ROUNDED)

67

J

M

BGML

PRODUCTION SCHEDULE

RESERVES :

MINE : ND

9.04

GRDE 4. 63 g/t.

LAKH TONNE

2000 - 2001
M__ TOTAL
400

N__

D__

J__

F___

340

O___
350

360

370

380

390

.56

.57

.58

.59

.60

.60

.60

.60

582

589

596

603

610

617

633

650

667

400

400

400

400

400

400

400

400

400

400

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

3.5

RECOVERY
Kg/day_______
COST ( Rs. L )

1.05

1.085

1.12

1.155

1.19

1.225

1.26

1.295

1.33

1.365

1.40

75

78

80

83

85

88

90

93

95

INVESTMENTS.
(Rs. L)

47

30

25

11

5

A__
330

S___

310

J___
320

.53

.54

.55

FACE EMPL

566

574

INDIRECTS

400

RECOVERY g/t

M___
300

PRODUCTIVITY

ORE tpd

02 MAY. 2000

J.

1

-J

100

*965

!

BGML

PRODUCTION SCHEDULE
MINE : ND EXPLORATORY DEVELOPMENT 2000 - 01
A

J___

J

M

A____
20 I

TOTAL

M

S____
30 |

0___
40

N__
50

D__
50

J__
50

F___

50

50 ’

ORE tpd

10
0.3

0 3 |

0.3 I

03

0.3

0.3

0.3

0.3

0.3 I

PRODUCTIVITY

33

67 |

100 ■

133

167

167

167

167

167 I

2.5

2.5 I

2 5 I

2 5

2 5

2.5

2.5

2.5

2.5:

RECOVERY g/t

.025

0 05 I

075

0.10

125

.125

.125

.125

.125 I

RECOVERY
Kg/day_______
INVESTMENTS
(Rs. L)
COST (Rs L)

10 0

12.5

12 5

12.5

12.5

12.5 |

FACE
EMPLOYEES
INDIRECTS^

02 MAY. 2000

___ i

!

.5

.5

.5
2.5

J
50 '

|
75 i

86 5

BGML

PRODUCTION SCHEDULE
MINE : CG

RESERVES.

20 09 LAKH TONNE

GRADE 5.50 g/t

2000 - 01
A

ORE tpd

M_
200

J__
220

J__
240

A___
260 |

S___

280

O__
300

N___
320

D__
340

J___
360

F___
380

M
TOTAL
400

PRODUCTIVITY

0.6

0.61

0.62

0 63

0.64

0.65

0.66

0.67

0.68.

0.69.

0.7 i

361

387

413

438

462

485

507

529

551

571 i

230

230

230 I

230

230

230

230

230

230

230

FACE
EMPLOYEES
INDIRECTS

333

230

I

I

I

RECOVERY g/t
RECOVERY
Kg/Day_______
INVESTMENTS

(Rs. L)
COST (Rs L)

02 MAY. 2000

I

4.5

4.5

4.5

4.5 |

4.5

4.5 I

4.5

4.5

4.5

4.5

4.5

0.9

0.99

1.08

117

1.26

1.35 ;

1.44

1.53

1.62

1.71

1.80

' 103

35.5

23

56 i
i

3

50

55

60

65

70

75

80

85

90

95

100

I

I

825

BGML

PRODUCTION SCHEDULE
MINE :CG

EXPLORATORY DEVELOPMENT
"2000 - 01
0___
' 40 i

N__
" 50

D__
50

J___
50

F

M___ TOTAL
50

~10 i

20

S___
30

PRODUCTIVITY

0.3

03

0.3

03j

0.3

0.3

0.3

0.3

03

FACE
EMPLOYEES
INDIRECTS

33

671

100

"133"

167

167

167

167

167

RECOVERY g/t

3.0

3.0

30

30 |

3.0

3.0

3.0

3.0

30

RECOVERY
Kg/Day_______
INVESTMENTS
(Rs. L)

.03

.06 |

.09

.12

.15

.15

.15

.15

.15

0.5

05 I

05

0 5 1

2.5

50 ;

7.5

10.0

12.5

12.5

12.5

12.5

12.5

A

M

J

ORE tpd

J___

A

____ i

COST

02 MAY. 2000

0.5

0.5

__ I

50

86 5

BGML

PRODUCTION SCHEDULE
GRADE

RESERVES

MINE : MM

2001 - 2002

2000-2001

A

S

N

O

D

J

A

M

50 ’

ORE tpd

M
50

J
50

M
50

PRODUCTIVITY

0.3

0.31

0.32

0.4

FACE
EMPLOYEES
INDIRECTS

167

161

156

125

40

40

40

40

RECOVERY g/t

3.0

3.0

3.0

3.0

RECOVERY
Kg/Day.______
INVESTMENTS
( Rs. L)
COST

0.15

0.15

0.15

0.15

12.5

12.5

12.5

12.5

I

(»2 MAY. 2000

10

10

10

BGML

PRODUCTION SCHEDULE

0.71 LAKH TONNES

RESERVES :

MINE : OB

GRADE:

4.85

2000 - 2001

O

J

65 |

D
’ 75

80

90

ibo‘

0.44 *
i

0 45 i

0.46

0.47

0.48.

0.49

0.5

136

144 I:

152

160

167

184

200

40

40

40

40

40

40

40

___ L
3.5

3.5

3.5 ,

3.5

3.5

3.5

3.5

3.5

193

.210 i

.228

.245

.263

.28

.315

.35

18

19

20

23

25

S

J___

45

50

55 I

60

PRODUCTIVITY

0.4

0.41

0.42

0 43 r

FACE
EMPLOYEES
INDIRECTS

100

110

119

128

40

40

40

40

RECOVERY g/t

3.5

3.5

3.5

RECOVERY
Kg/Day.

.14

.158

.175

INVESTMENTS
(Rs. L)
COST

50

42

12

10

11

13

| ORE tpd
i_________________________

F___

N_
70

A

J

M_
'40

A

TOTAL

___ 1

• i

14 i
I

15 i

16 .

184 i

BGML

PRODUCTION SCHEDULE

RESERVES : 0.14

MINE : CR

LAKH TONNE

GRADE:

5.44

F__

50 |

'50

2000-2001
TOTAL

N_

D

30

O
35

40

45

J
50

3

33

37

.4

.43

.47

“fT

•5 i

83

91

95

100

105

106

100

100 •

25

25

25

25

25

25

25

251

RECOVERY g/t

45

45

45

4.5

4.5

4.5

45

45 :

RECOVERY
Kg/Day._______
INVESTMENTS
(Rs. L)
COST

113

135

158

.180

.203

.225

.225

225

8

9

10

11

13

13

13

A

M

J
I

ORE tpd

- I

PRODUCTIVITY

’I

FACE
EMPLOYEES
INDIRECTS

02 MAY. 2OOO

9.25

6.25 i

6.25

A
25

S

0 75

I

6

8

3

BGML

TAILINGS

SCOPE

RECOVERY OF GOLD FROM TAILINGS

MARKET

INDIA :

CURRENT OPERATIONS



500 tonnes/year

PROCESS : HEAP LEACHING
MANPOWER : 30

PROPOSED OPERATIONS

02 MAY, 2000



CAPACITY : 500 tonnes/day



RECOVERY : 0 35 gm/tonne
= 175 gm/day
= 45 kg/year (Monsoon Loss 7.5 kg)



PROCESS: C-l-P (CARBON-IN-PULP)



INSTALL 3 PLANTS SUCCESSIVELY
EACH ONE OF 2000 tonnes/day.
TOTAL CAPACITY : 3 x 2000 x 300 = 1 8mt/year



INVESTMENT PER PLANT: Rs.8 Cr



MANPOWER PER PLANT : 80



RECOVERY : Kennedy : 0.62 g/t = 1.24 Kg/day
: Others : 0.50 g/t = 1.00 Kg/day



HEAP LEACHING TO CONTINUE IN PARALLEL
TILL THE SECOND C-l-P PLANT BECOMES
OPERATIONAL

BGML

TAILINGS
PROPOSED OPERATIONS
1. MANPOWER

6/2000

12/2000

HEAP LEACH

30

30

C-l-P 1

80

6/2001

12/2001

80

80

80

80

C-l-P 2
C-l-P 3

>

80

TOTAL

30

r2. INVESTMENT (Rs.Cr)

3. TONNAGE
HEAP
CIP1_____
CIP2~
CIP3
TOTAL

4. GOLD
RECOVERY (Kg)

110

160

240

8

8

8

[

6/2000 - 3/2001
1,25,000
2,00,000

3,25,000

6,00,000
6,00,000
6,00,000
18,00,000

2001-2002

HEAP

37.5

7.5

CIP 1

124

372

372

CIP 2

250

300

CIP 3

100

300

729.5

972

02 MAY, 2000

161.5

24 Cr
2002-2003

2001-2002
25,000
6,00,000
5,00,000
2,00,000
13,25,000

6/2000-3/2001

TOTAL

>

2002 - 2003

>

>

25
SGML

TAILINGS
5. Revenue ( Cr)
Costs ( Rs. Cr)
@ Rs. 200/Tonne
Profits. (Rs. Cr.)

2000-2001
7.26
6.50

2001-2002

32.83
26.50

2002-2003
43.74
36.00

0.76

6 33

7.74

I

02 MAY, 2000

1-Q

WORKSHOPS
SCOPE
1. CENTRAL WORKSHOP (MECHANICAL)
DRILL RODS



MINING EQUIPMENT

MACHINING OF RAILWAY WAGON WHEELS
FERROUS & NON-FERROUS CASTINGS

2. CHAMPION REEF WORKSHOP
.

WINDERS (MINE HOISTS)



SUSPENSION EQUIPMENT
RE-CONDITION TURBINES, PUMPS, ETC
FORGINGS

MACHINE SHOP

3. ELECTRICAL WORKSHOP


MINE LOCOMOTIVES (BATTERY-OPERATED)



LIGHT FABRICATION (CABINS, BOXES, ETC )



RE-CONDITION ELECTRICAL EQUIPMENT



MAINTAIN LOCAL LIGHTING, TELECOM, AND STAND-BY
GENERATORS ETC.

ALL WORKSHOPS SERVE TOTAL NEEDS OF SGML, AND ALSO PERFORM
WORK FOR OTHER COMPANIES TO EARN REVENUE.

2^

MARKET

UNLIMITED

MANPOWER

lOI'AL

OWN USE

OTHERS

CURRENTLY
UNDER-UTILIZED

CENTRAL

240

100

140

100

CHAMPION

250

80

170

100

ELECTRICAL

210

160

50

40

TOTAL

700

340

360

240

MANPOWER FOR “OWN USE” IS FULLY UTILIZED AT PRESENT

PROPOSAL
FUTURE GROWTH (MANPOWER)
OWN USE
OTHERS
TOTAL

FROM 340 TO 400
FROM 360 TO 400
FROM 700 TO 800

INVESTMENT -

REVENUE

Rs. I 25L/PERSON YEAR

COST

Rs. 75 K/PERSON YEAR

PROFIT

Rs. 50K/PERSON YEAR

\

2%

I

WORKSHOPS
(OTHERS ONLY)

MANPOWER, PROFITS

2000 - 2001

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

MANPOWER
OWN USE
OTHERS

340
120

350
150

360
180

370 x 380
210
240

390
270

400
300

400
330

400
360

400
390

OTHERS
REVENUE

2550/12 x 125

COST

360 x 10/12

PROFIT

Rs 2.66 Cr

x 75

Rs 2 25 Cr

Rs. 0.41 Cr.

2001 - 02 ONWARDS

MANPOWER

400 MAN-YEARS

REVENUE.

RS. 5.00CR./YEAR

COST

RS. 3.00 CR. /YEAR

PROFIT

RS. 2.00 CR. /YEAR

SGML

PROJECTS
SCOPE

TO CARRY OUT TURN-KEY JOBS FOR METAL AND
COAL MINING COMPANIES IN INDIA.
INCLUDES

: DESIGN. FABRICATION. ERECTION AND
COMMISSIONING OF EQUIPMENT
: SINKING OF SHAFTS AND
DEVELOPMENT OF TUNNELS

MARKET

UNLIMITED

MANPOWER

CURRENT STRENGTH 180

UNDER-UTILIZED

PROPOSAL

50

OBTAIN ADDITIONAL CONTRACTS THROUGH ACTIVE
MARKETING STARTING JUNE,2000

REMOVE UNDER-UTILIZATION @ 10 PERSONS/MONTH
THEN GROW WORKFORCE UPTO 250
ACTIVE OUT-SOURCING BEYOND WORKLOAD OF 250
ASSUMPTION
REVENUE PER PERSON Rs.2.0 L/YEAR
COST PER PERSON
Rs 1 0 L/YEAR
PROFIT PER PERSON
Rs 1 0 L/YEAR

INVESTMENT REQUIRED

PROJECTS
MANPOWER/ FINANCIALS
2000 - 2001
REQ'T (PERSONS)

APR MAY JUN
130

JUL AUG SEP OCT NOV DEC JAN
140 150 160 170 180 190 200

FEB MAR TOTAL
210 220
RS.292L

REVENUE
>

180

MANPOWER AVAIL

190

200

210

200

COST

RS.160L

PROFIT

RS.132L

2001 - 2002
REQ'T (PERSONS)

APR MAY JUN

230

240

JUL AUG SEP OCT NOV DEC

250

JAN

FEB MAR TOTAL
>

REVENUE

RS.494L

COST

RS.247L

PROFIT

RS.247L

(2002 - 2003) AND ONWARDS
250 Man-Years
REQT
RS.500L
REV
RS.250L
COST
RS.250L
PROFIT

3/

WAGON MANUFACTURING

SCOPE

MANUFACTURE
OF
NEW
CUSTOMER SPECIFICATIONS

CUSTOMERS

INDIAN RAILWAYS
COAL INDIA
NTPC
SAIL
NLC (NEYVELLI LIGNITE)
CONCOR ETC ETC

MARKET POTENTIAL


.
.

START OF PRODUCTION

OCT 1999

CURRENT ORDER

:

WAGONS

TO

RAILWAYS : 18,000 WAGONS / YEAR
CONTAINERS FOR CONCOR
NON-STANDARD WAGONS FOR OTHERS

60 (+/- 30%) TO BE COMPLETED BY MAR, 2000

INSPECTED

AND

ACTUAL DELIVERIES

2 WAGONS IN JAN,2000
APPROVED BY RDSO

PROPOSAL

.

EXPEDITE DELIVERIES AGAINST CURRENT
ORDER

.

OBTAIN FRESH ORDERS

INCREASE CAPACITY
WAGONS PER DAY

GRADUALLY



ENSURE QUALITY & DELIVERY ON TIME

.

IMPROVE PRODUCTIVITY OVER TIME

TO

2

32.

WAGON MANUFACTURING
PROFIT PER WAGON

• REVENUE

Rs. 5.0 Lakh

• COSTS
• LABOUR (DIRECT + INDIRECT)
435 MAN-SHIFTS® Rs.200
• CONSUMABLES
• PURCHASES

Rs. 87,000
50,000
Rs.
Rs. 3,16,000

TOTAL

• PROFIT

Rs. 4,53,000

Rs.

47,000

WAGON MANUFACTURING

2000- 2001

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR TOTAL

5

OUTPUT(WAGONS)

—►

13

>

20

163

81

PROFIT (Rs. L)
INVESTMENT (Rs L)

10

MANPOWER

170

20

10
190

210

240

270

290

320

350

380

400

420

2001 - 2002

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR TOTAL

OUTPUT(WAGONS)

26

>

>

39

364

171

PROFIT (Rs. L)
INVESTMENT (Rs. L)

50

50

470

530

590

650

670

690

710

730

MANPOWER

440

2002- 2003

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR TOTAL

OUTPUT(WAGONS)

39

500

560

620

>

52

>

520

PROFIT (Rs. L)

244

INVESTMENT (Rs. L)

0

MANPOWER

750

770

790

810

830

850

870

>

34

»
BGML

POWER
One of the main reasons for the downfall of BGML has been the
power tariff charged by Karnataka.
A steady, uninterrupted supply of power is essential at BGML both to
run the equipment and to ensure safety of workers deep down the shafts by
pumping water and maintaining ventilation for 24 hours and assisting exit
during emergencies.

FACTS
BGML equipment uses 25 cycles power only. It is the only user of such
power in Karnataka. There is some need for 50 cycle power which is
obtained by converting 25 cycles to 50 cycles at BGML.
The generating station at Shivasamudram on river Cauvery and the
transmission lines to KGF were totally funded and set up by BGML for its
own requirements. The total capacity is 42 MW ( 4x6 MW + 6x3 MW )
The power generation at Shivasamudram was managed by the Mysore State
for a nominal charge. All major maintenance was undertaken by BGML.

Since BGML was the biggest contributor to the revenues of Mysore State,
KRS dam was established around 1910 to ensure a steady supply of water
to Shivasamudram station throughout the year.
The supply of 25 Cycle power has been very reliable with very few break
downs, that too for short durations.

The charges for power have increased at a galloping and unfair rate, and
have been a major contributor towards the non-profitability of BGML ( See
attached table ).

PROPOSAL :
It is not feasible to convert the equipment and the
distribution network at BGML to a standard 50 cycle supply.
25 cycle power must continue. The current equipment, with
proper maintenance, will last for decades.

02 MAY. 2000

BGML

*

There are 2 alternatives for on going supply of 25 cycle
power to BGML.

* Leave the 25 cycle generators at Shivasamudram
as they are, or

‘ Convert the entire setup at Shivasamudram and
the distribution links to KGF to 50 cycles, and
convert the required power to 25 cycles at BGML.
*

There are many problems with the second alternative

* Initial cost of changeover.
* On going high cost of power making BGML enviable

Variations and interruptions in 50 cycles power
jeopardizing the operation, and more importantly,
the safety of the workers in the mines.

*

*

The only sound alternative is to leave 25 cycle
generation as it is at Shivasamudram It is proposed
that

* Either the Shivasamudram power station be handed
over to BGML. Any surplus power generated above
and beyond the requirements of BGML will be
converted to 50 cycles, fed to the state grid, and
charged at cost with no profit.
*

Or the Karnataka Government should continue to
run the station and charge the actual operating cost
to BGML for the power used. The cost can be
discussed and agreed to.

It is estimated that the actual cost of operation
and distribution of 25 cycle power to BGML will work out to
Rs. 0.40/KWH against the current charge of approx. Rs.
4.25/KWH. The total annual bill for power will drop from
Rs. 17.0 Or to Rs. 1.6 Or.

02 MAY. 20(X)

-36
HGMI.

SHIVASAMUDRAM UNDER BGML
COSTS(PER MONTH)

People :

Engineers

:

7 @ Rs. 10 K/ Month =

Supervisors : 13 @ Rs.
Workmen.

7 K/ Month

: 32 @ Rs. 6 K/ Month

TOTAL.

Rs.

70 K

Rs

91 K

Rs 192 K
Rs 353 K
Rs 500 K

Consumables

Rs. 50 K

Total Cost.

Rs 550 K

= Rs 1200 K

Units Consumed ( KWH ) / Month

Rs 3000 K

Cost / Unit ( KWH )

Rs 0.40

02 MAY. 20(H)

I1GMI.

COMPARISON OF THE PROPOSAL TO CLOSURE
CLOSURE.

01.

PEOPLE.

02.

VRS.

03

On-going expenses

04

Write - Offs

4000 +
( Unemployed )
2,00,000
( Affected )

115 CR

GOI

??

REVIVAL
No unemployment or any
impact on the social and
economic life of the
employees or the township.
Instead, with increased
employment and
upgradation of skill’s
the population will enjoy
a higher level of prosperity.

Put on hold.

All assets maintained in
working order at no cost to
the Govt. The costs are
borne by SGML

Rs 531 Cr.

Same as closure

Karnataka

50"

AP

3"

HZL/NALCO.

18"

H

Employees / Ex -

24 "

ii

H

Instead the Government gets Profits, Royalties, Taxes and saves
Foreign Exchange.

02 MAY. 2000
i

BGML

ORGANISATIONAL SUGGESTIONS
01.

It is necessary that the strategies, plans, and performance of BGML be
reviewed and guided by a Committee of expert technical / management
consultants on an on-going basis. We suggest a monthly review in the early
stages of revival. Later, it could be quarterly or half-yearly.

02.

A Planning & Analysis Department must be created with good management
skills / experience. The plans must be aggressive but achievable. The
performance must be analysed monthly with an objective of understanding
variations to plan so that appropriate actions can be put in place to achieve a
steady improvement in results.

03.

An Exploration / New Business Opportunities Department must be
established within each BU with persons of good foresight to suggest areas
of opportunity for the BU's. Investments into new ventures should be guided
and approved by the Technical / Management Advisory Committee.

02 MAY. 2000

IJGMI.

SUMMARY OF PROPOSALS

01.

It is suggested that the proposals contained in this report be reviewed
by the Govt, and discussed with the employees of BGML and their
consultants. It may be necessary to constitute a Technical Review
Committee with equal experts from both sides to reach a consensus
within a month and report back to BIFR.

02.

In the meantime the Govt, should continue to fund BGML at the bare
minimum survival level for the current operations.

03.

When BGML is operational again, in the national interest and
considering the world-class skills in the company, the Govt, should lay
a target on the company to increase its gold output by one tonne each
year, with due consideration to profits, thus exploiting the country's
reserves of gold and expanding employment in ore mining industry for
local residents of rural areas. The company should be given a
preferential treatment in awarding new leases for prospecting and
exploration.

04

In addition, the company should be asked to develop and implement a
strategy of becoming a world-class Centre-of-Competence in all
aspects of mining - exploration, design, and implementation-and
expand its consulting / turn-key project activities beyond national
borders to become a source of pride and export revenue for India.

05

BGML owns nearly 12,000 acres of highly arable land with good
annual rainfall ( about 35 inches ). A lot of subterranean water drains
into the mines regularly. The daily quantity of water pumped out of
the mines is close to 2 million litres. Also the water is close to 60
degree C in the mines. There are enormous opportunities to exploit
the available land and water resources.

Date : 2nd May 2000.
02 MAY. 2()(X)

C

H- 2?-C 'Ll

ffl ffllES

V

102, BtBLQCK. CHAMPION KUlil S, lCG;l-.563 117.

To

20-03-2000

The Hon'ble Chief Minister,
Government of Karnataka,
Vidhana Soudha,
Bangalore.
Dear Sir,

Sub.: Submitting a Memorandum of Demands through a Procession
and a Public Meeting being held on 20-03-2000 in support of
KGF People's Movement(KPM) demanding your immediate
intervention for a New Economic Package for KGF Town and
Revival of BGML which is facing a threat of closure.

We the members of Bangalore Solidarity Group consisting of Urban Poor and Social
movements, Women's Movements, Trade Union Organisations of Unorganised and
organised labour, Religious and Minority Organisations, Youth organisations, Human
Rights organisation etc., and the members of KGF Peoples Movement, putforth the
following concerns and demands for your kind attention and immediate action.

Sir, as you are aware that Bharat Gold Mines Limited (BGML), a Public Sector
Enterprise of Govt, of India is facing a threat of closure. The recommendations of the
Central Cabinet to wind up 120 years old Gold Mines which has contributed to the
nation's economy right from its inception, has shocked the entire nation particularly the
people of Karnataka. BGML, the pride of Karnataka which has produced around 800
tonnes of gold, worth over Rs.45,000 crores sofar, has been denied of additional funds for
revival.
Few decades ago, Kolar Gold Fields was the main source of revenue that enabled the then
Mysore State to develop into one of the progressive states in India in the field of
industrialisation. At one stage KGF mines were contributing nearly one third of the total
budgetary revenue of the Mysore government. Nearly 6000 workers were killed inside
the mines while developing Kolar Gold Mines which is the deepest Mines in the world.
Inspite of these realities the KGF town was neglected totally and deprived of any
economic development programmes and schemes during the past 52 years of
independence.

working of the company for revival had submitted 3 reports i.e. m March 1994, October
1996 and July 1997 and in none of the reports the company was projected as unviablc.
This report was completely neglected by the Union Government.

,

There were several reasons which have contributed towards the sickness ol
In 1986, the Tiwari Committee which had studied the causes of sickness m
) argc
the end of 1979, reported that in ST^ofth^case^f
sickness was on account of deficigncigsjriJdanagCTtenh 234jljie_to_niarket recession,
1W. Tn GiFcount^f mdTnicaL factors and faulty planning, 9 ^duetomfi^struc^
fBCtofnmTO
Even today, theTBIFR feels thaTTTinagemen
in most of the industries. This fact was also
neglected by the Govt, of India.

In the year 1994, a Parliamentary sub-committee on industry, headed by Smt. Sushcela
Gopalan, visited the SGML on 5th & 6lh of Jan. 1994, revealed that (a) Faulty process o
extraction (b) Pilferage of the finished goods are two important factors responsible for
escalation of cost of production. The report highlighted the absence of security officerTo
head the security network. The pilferage of Gold during that time (1994) was estimated
about 30 crores per annum! On top of this, the BGML management does not contest the
court cases of pdferages and seem to be totally unaware of all these being practiced in

their premises.
The report also observed that Shivasamudram hydel power station was exclusively built
for BGML but the Karnataka Electricity Board was exorbitantly charging Rs.4.10 per
unit, eventhough production cost per unit was only 8 paise in 1972. It also
that the Mysore Government was charging the mines a hefty royalty of S/o suitei 188
without extending any facility except providing the lands on lease basis. In 1943 the
taxes levied by the Mysore Govt., peaked at Rs.246.35 lakh. Now, the Govt, of

Karnataka has reduced the royalty to Rs.l lakh per annum.
Thus the symptoms of sickness surfaced in the 1980's, nothing substantial was done to
ameliorate the sickness. On the other hand, the company went °!\.lab0U^
°
resulting in poverty, unemployment and inhuman living conditions of the working
population in the KGF area. It is very clear that lacj<_ofmanagers^
good management are
the main
maj^^FBCMT^i^
^ resulting
are the
cause of BGML's sickness,
cToiureT
‘^Tlh^bove mentioned facts clearly demonstrates that the wrong poHcies and priorities

adopted by the govt, of India and the BGML management are the main causes for the
trauma of closure of the World famous Gold Mines. The arbitrary decisions of the Union
Government to windup BGML without providing appropriate rehabilitative measures to
the mining community will directly victimise 4200 workers, 30,000 women and Children
and a suslined development of 1.5 lakh population of KGF, majority of them being
Scheduled castes and Minority communities.

' ’

At this juncture, we would also like to mention that KGF town is a Reserved Assembly
Constituency in a Reserved Parliamentary Constituency.

Sir, we would also like to bring to your kind notice, the infrastructure facilities available
in the KGF town for industrial development.

50 sq. kilometer areas under the lease hold of BGML in KGF alone.

- A broadguagc railway network with 4 stations in the leasehold property directly
connected to Bangalore and Madras.

Fleet of buses plying between state capitals and KGF and few kilometers away
is the National high way.
The Asia's first Hydro-Power Station Installed in 1902 solely for KGF mines supply
adequate Elcctricty till today and surplus capacity is available too.
The well developed KGF Mining city has adequate water and sewerage system.

All the 10,000 employees & Ex-employees are provided with housing in the mining
area with amenities. It has an established 260 bed hospital offering specialized
service in many fields, besides the district and E.S.I. Hospital.
Good postal, Telephone, Fax / Telex facilities are available, and has a T.V. repeater
station too. .
Very good Schooling with facilities with more than dozen high Schools, Industrial
Training Centers, Polytechnics, Science and arts College, Engineering College
specializing mining, mechanical, electrical and computer science in the mining land.
In close vicinity is the Dental, Parma and Medical college.

A well developed Industrial estate with all sorts of works in close proximity.
KGF Mines which started R & D efforts in Rockbursts, Ground'control research etc.,
First time in the country is giving able helping hand to T.I.F.R., B.A.R.C., for
developing many research centers in the mine and conducting various experiments of
world repute.
K.G.F. has salubrious climate better than Bangalore.

In close proximate is the Bharath Earth Movers Ltd., a heavy earth moving machinery
giant.
(3)

Above all K.G.F. mines has the most dedicated, loyal, disciplined and highly skilled
to semi-skilled human resource and as children of miners have been working 3 to 4
generations. The young are educated, well trained and are imbibed of work culture.
There has been no labour unrest, very flexible and could easily take on diversification
in a big way in short stint and could turnout many products.
The above facts clearly shows that there are possibilities for revival of BGML as well
provide alternative economic package for the development of KGF town.
Hence, sir, we demand that your goodself should intervene in this matter
immediately and pressurise the Govt, of India to infuse sufficient funds for revival
of BGML as well putforth diversification proposals like (1) manufacturing of freight
containers, (2) continuation of wagon production (3) Wagon and Coach servicing
centres (4) Central Electrical workshops and mechanical workshops etc.,

The Govt, of Karnataka under your able leadership can start
industries to generate employment and alleviate poverty.

the following

1. BUS BODY BUILDING UNIT
The proposal is already with government of Karnataka to be implemented.

2. DEFENCE RECTUITMENT CENTRE;
KGF being very near to Bangalore-Madras and well connected with all infrastructure
locating a Defence RECRUITMENT centre will be another area where we request your
direction to Govt, of India, Ministry of Defence.

3. LPG BOTTLING PLANT;
KGF has a vast area with broad guage Railway sidings connecting 4 Railway stations.
The main line of Madras-Bangalore is in its vicinity, the LPG bottling plant can be
ideally located in our land near the Railway station between Marikuppam-champion reef.
This will not only stop the deterioration of champion reef Marikuppam area, but will add
to revival of this place. We request your good self to intervene and direct the Ministry of
Petroleum to sanction the plan.
4. LAND BASED INDUSTRIES are also welcome for the development. BGML is in
possession of nearly 10000 acres to be utilised either for sericulture or agriculture or any
other business of potential recruitment.

(4)

OUR OTHER DEMANDS:
1. Provide ownership rights to the dwellers of the mining houses immediately.

2. Start small and medium scale industries to generate employment.
3. Provide loans for self employment.
4. With-draw the retrograde decision to close down the mines until providing

nltcrniHe job to (he mining workers mid their dependents.

5. To make earnest efforts to resolve and finalise the WAGE REVISION pending
since 1989.
We sincerely hope that you will understand the situations and initiate immediate action to
do justice to the toiling working class , dalit and minority communities. We also request
you to call for a wider discussion with the concerned organisations and the
representatives of KGF Peoples Movement and Bangalore Solidarity Group as early as
possible.

Thanking you,
Your sinfcerely,
/ r

(N'f. MY),
Coi venbr
Bangalore Solidarity Group.

(J. BACKJYANATHAN),
Convenor
K.G.F. Peoples Movement.

(5)

Bangalore Solidarity Group C/o National Centre for Labour No. 19, 6lh cross,
Rangadasappa Layout (Pukkaraj Layout) Adugodi post, Bannerghatta Road,
Bangalore- 560 030. Phone-2238739.

-Ml

Gjo

*

CORRESPONDENCE

The mill tailings of Kolar gold mines
B. R.. Krishna and F. H. Geiji (Curr.
Sei, 2001, 80, 1475-1176) have high­
lighted the environmental pollution
being caused by the dumping of the mil!
tailing (sand) in the Kolar gold mines
area. It is true that there are about 32
million tonnes of this sand, which
makes up the 15 dumps spread out
along 8-km long distance in the mine
area. These sands have been causing
considerable environmental health haz­
ards to the people of the Kolar gold
field. During the months of June/July
w’hen the weather is dry and windy,
these sands are carried eastward to
Robertsonpet and Andersonpet areas,
over a distance of 3 km. The finer parti­
cles get air-borne and finally settle
down up to a radial distance of 4 km.
With the onset of monsoon, the rainw'ater carries these sands further down
onto tank beds. These sands are essen­
tially made up of grains of quartz and
amphibole minerals, with a fineness
varying the <100-<200 mesh size in
the proportion 30 : 70, respectively. The
major constituents of these sands are
given in Table 1.
The authors’ apprehension that these
sands cause health hazards like silico­
sis, lung cancer, etc. is not based on
facts. According to Gowda and Shenoi1
of M/s Bharat Gold Mines Medical De­
partment. ‘although the gold mines are
100 years old, so far there is no reported
occurrence of silicosis in any of the
employees of the Kolar gold mines.
They further confirm that silicosis, as
seen in the famous R.and gold mines of
South Africa, does not exist in the Kolar
gold field. However, a form of pneumo­
coniosis (lung disease) is commonly
found in underground mine workers and
Table 1. Major constituents of sand in
the Kolar gold mines area
Poreontaflc

their most recent study (1973-1978) on
5893 workers has shown a decline in
the prevalence rate of pneumoconiosis.
The mill tailings have so far not caused
any respiratory health hazards or skin
diseases or allergies to the people of
Kolar gold field area. At best, these
sands can be considered as a nuisance
and should be ignored as innocuous.
As for the possible industrial use of
these mil! tailings, so far al! attempts
made in the past have proved to be ei­
ther futile or uneconomical. In the early
fifties, the British engineers mixed
these tailing sands with Portland cement
and after reinforcing with steel rods,
m.qnuFartnrpH XVII
fAni'A-nnctc
nillarc elahe
WW pV»Jb>J M111U1 C,
A Uk/
Ail U11UAU VIUA WW

etc. Since these products lacked the
required strength, they a!! cracked up
and broke. In another attempt, during
the 1980s the Bharat Gold Mines Ltd
(BGML) supported a S&T project by
the Cement Research Institute of India
(CRH) for manufacture or Portland/Pozzo!and cement by blending
these tailings with high-grade limestone
obtained from Bagalkot in Belgaum
district. Although technically it w-as
found feasible, the final assessment was
that economically it was not viable for
two reasons: (1) For each tonne of mil!
tailings, four tonnes of high grade lime­

w-as treated and 106 tonnes of scheelite
(tungsten ore) w-as recovered as a by­
product by BGML. The mill tailing
conHc
UUlAUtJ

rntntqin
feVUkUUJ

qhoi’t

UVVUL

O
V ■ 7C
• s a

nF

wx

gold/tonne of sand. So during 19861998, BGML treated 3.8 lakh tonnes of
sand and recovered 328 kg of gold by
heap leaching technology. This in­
volved transportation of sand for 3 km
distance to an uninhabitated area which
in turn created air pollution enroute.
Tliis apart, the cost of other inputs like
labour, powder, cement, cyanide, trans­
port, etc. was prohibitively high and
hence in January 2000 BGML closed
down this plant also, as part of its final
wdnding-up operations.
Until 1956, all the underground work­
ings w?here the gold ore has been ex­
tracted, w'ere being supported by timber
nf orqnitp
x/x

which
V
qc
mull
vr’ix
m

v vi jr

AvnpncivA
t v.

After studying some of the Australian
gold mines, BGML also started making
use of these sands wdth water to fill up
the stoped-out areas. From 1956 to
2000, BGML used about 3 million ton­
nes of sand for supporting the under­
ground workings. Perhaps, this is the
best use the mill tailings have been put
to so far.
The suggestion of Krishna and Gejji
of making use of these sands for the

stone had to be procured from Bagalkot

manufacturing of hollow bricks, solid

area and transported over 400 km dis­
tance. (2) All the major constituents like
SiO>, ALOj, MgO and Fe2O;< W'ere al­
most double in percentage compared to
specifications.
Krishna and Geiji’s contention that
about 20-22 million tonnes of these
tailings has been lost due to denudation
is not correct. The total quantity of tail­
ings generated during the last 120 years
is about 35 million tonnes and the pre­
sent (1999) estimate is 32 million ton­
nes. The difference of 4 million tonnes
is accounted for as follows: (i) Tailings

columns, reinforced slabs, an additive
for Portland cement, for manufacture of
stoneware pipes, bottles and bangles,
etc. may not be feasible as these tailing
sands do not possess the required physi­
cal and chemical attributes as specified
for the respective industries.
According to Ganapathi Prabhu3,
BGML under technical guidance, under­
took an afforestation programme on the
tailing dumps, to contain the dispersal
of these sands. Hybrid eucalyptus sap­
lings were SHCccssfnlly grown after
spreading red-earth and green manure

jnstitueni
Calcium oxide
Silica
Aluminium oxide
Ferrous oxide
Magnesium oxide
Loss of ignition

Lighlcoioured

UMf.k-

coioured

8.4
56.0
11.9
10.2
8.6
2.0

7.6
51.8
8.2
18.9
6.3

3.9

useci tor iiHing voids underground inr
sand stowing: during 1956-19S0, 1.6
million tonnes2; during 1980-2000, 1.4
million tonnes (SGML source); total,
3.0 million tonnes, (ii) The balance 1
million tonne may be accounted for
denudation.
During 1981-1989 about 2,03,500
lunncs of tailing sand found around
Walker s shaft in the Nundydroog area

as tounoation on rhe- dumps, with good
care. Lhe saplings grew into adult trees.
The greenery was evident and prevented
the sand from denudation. Since Janu­
ary 2000, the maintenance of these
plantations has been given up by
BGML, as it. has wound up all its opera­
tions. Now it is left to the Karnataka
Forest Department to look after these
plantations, to mitigate the environ-

CTTBRENT SCIENCE, vol. 81, NO. 6, 25 SEPTEMBER 2001

631

COBPJESPONTDENCE
mental pollution of the Kolar gold field
area.
About 6 years ago, an Australian
company came up with a project of re­
covering the residual gold (0.75 g/
tonne) from the mill tailings by in situ
heap leaching technology. However,
due to the proximity of these dumps to
the dwellings of workers, etc. the pro­
ject did not materialize.
Now that SGML has abandoned its
mining and metallurgical operations
since January 2000, there is nothing
anybody can do. The people in and
around Kolar gold fields have to co­
exist with the dumps and tolerate its
nuisance until a new solution is found.
The Building P.esearch Institute at P„oorkee may have some answer for the
utilization of these sands.
1. Gowda, A. M. S. and Shenoi, B. V.,
Bharat Gold Mines Ltd (SGML), Centen­
ary Souvenir, 1980, pp. 13—15.
2. Devaraj, V. G., BGML Centenary Souve­
nir. 1980,. pp. 104-106.
3. Ganapathi Prabhu, K. in National Semi­
nar on Recent Development in F.xploraiivn, Expk'haiicu of Minerals in India,

Mining, Geological and Metallurgical
Insiiiuie of India, 1990, pp. 165-166.
J. V. STJBBz\R?J.L\N

1126, GtMhaRofjd,
Robsrtsonpst,
Kolaj' Gold Field 563 122, India

Response

Para 1 of the article by J. V. Subbaraman confirms the prevalence of envi­
ronment pollution hazard. It also
substantiates the same, not only on
the mine workers, but also on the
local population living at a considerable
radius surrounding the mining area,
where the min tailings are heaped as
dumps.
Para 2 identifies pneumoconiosis
(lung diseases), which is invariably
associated with Lhe respiratory system
of all living beings. As far back as from
1917, various miners’ diseases resulting
from the gold mining by milling process
are being studied and identified by
the National Institute of Miners’
Health founded at site in the Kolar Gold
Field.
Afforestation efforts towards retard­
ing lhe environment pollution hazard,
affirm the pollution hazard a very
expensive sdierne, but not yet a perma­
nent remedy. The major constituents of
the mill tailings being about 55 to 60%
of silica dust and the balance also of
other amphibole minerals, establish the
fact that lung diseases are cansed by
inhalation of the silicious dust, (ref:
Souvenir of the 50th year of Independ­
ence- 1997).
Coming to bulk productive utilization
of the tailings, the technical feasibility
of developing the puzzolonic character-

istics is in consonance with our scheme.
Only the research and experimentations
are conducted in the wrong direction by
the Cement Research Institute of India,
with support from Bharat Gold Mines
Ltd, as a S&T project. As far back as in
197-1 we had suggested the scheme
for Lhe same, since fast-consumption of
the tailings is the only permanent solu­
tion.
The statement that the total mill tail­
ings generated over the past 120 years
is only 35 million tonnes, of which only
one million tonne is lost by denudation,
is not correct. The historical gold pro­
duction data of the Kolar gold mines
are: 51.121 million tonnes of ore are
milled and gold produced is 800.3 ton­
nes, as furnished by the Indian Bureau
of Mines for the total period of a little
over 120 years, ending on 31 March
2000.

B. R. KRiUHWA*

F. H. Gejjit

^Satya Sai. 22(A)
S. M. Layout, V Phase,
J. P. Nagar,
Bangalore 560 078. India
60, BTS Roud
Wilson Garden,
Bangalore 560 027, India

c

K , 25 S~- ^-3

Closure of Bharat Gold Mines Limited
Press Release

In March 2000 BIFR ordered the closure of the 120-year old Kolar Gold Fields (KGF), declared in 1992 as
a sick company. This week a 60-member delegation of workers, supervisors, technical managers, and
citizens is in the capital to protest against the closure order. Their contention is that the company has been
deliberately made sick to enable it’s sale to foreign interests in the new climate of globalisation and
liberalisation.

KGF was acquired on lease for 90 years in 1881 and managed by John Taylor and Sons. In the early years
up to 1910 the company was so profitable that it declared dividends up to 165%. Even after that the
company maintained its profitability until 1960 through new discoveries of deposits and innovations in
technology as the mines went deeper up to a depth of 3 km. It was taken over by the Government of
Mysore in 1956, then by the Government of India in 1962 (and reconstituted as BGML), and ever since the
decline has begun. Since 1880 the company has produced 800 tonnes of gold, valued currently at Rs.40,000
crores, but is presently reported to have accumulated losses of over Rs. 400 crores.
The official reasons for the decline have been given as:
• Decline in gold production
• Fall in ore grade
• High cost of labour
• High cost of power
• High cost of infrastructure
• High interest burden
Employees contest each of these reasons, saying that it has been deliberate acts of mismanagement that
have promoted the decline. For instance, they point out that increased gold production, when the ore grade
is declining, depends upon greater exploration and development of ore reserves. But, since 1962, there has
been no investment in exploration and development Since 1987, when diversification was ordered by the
management the deeper mines have been abandoned, more than 6 lakh tonnes of ore reserves have been
intentionally flooded, new reserves of an estimated 33.6 lakh tonnes have not been explored, there has been
no development of new technologies, and money has not been provided for the repair of old equipment.

The high cost of labour too is laid at the door of mismanagement In feet the workforce has declined from
a high of 27,000 in the 1940s to about one-fifth presently, but the number of managers increased three-fold
during the same period. Skilled workers were moved out from mining jobs as part of the misplaced
diversification programme of 1987 while real wages did not rise. Workers cite independent sources tn
argue that the value added by the workforce has always been higher than their remuneration. Even the high
power cost is traced to the feet that, while energy comprises roughly 25% of the total production
requirement, electricity tariff was hiked from 3 paise per unit in 1970 to Rs.4.10 in 1998 as a consequence
of nationalisation. This was in sjate of the fact that the Shivasamudram power plant constructed in 1902
was solely dedicated for use by KGF, is still maintained by SGML, and the frequency is such that it’s
power cannot be used anywhere else.
As for the high cost of infrastructure and the high interest burden, these are again a consequence of policies
followed by the Government of India, the Government of Karnataka, the Ministry of finance, and the
Ministry of Mines. Thus, the decisions to diversify and create an expensive infrastructure, to close down
the lower levels and stop pumping to save on power costs, to restructure the security system, to keep giving
non-plan loans with rising interest costs while net paying BGML the market price for gold, all led to the
manipulated “sickness” of the company. It is not just the employees who are voicing these opinions. They
have been well documented by at least 11 investigations and reports published since 1984. They have
included reports by the Comptroller and Auditor General, the Pariiamentaiy Standing Committee, and
technical bodies such as the Geological Survey of India and ICICL

<rf adverse pncmg policies. Rs.53 crores is estimated to have been lost

Iw^nfn^

iJIHH.’iun

111 < 111 > i < > iTi

£ iST

h3St?S0 P0*fonvald 311 alternative revival plan. In this they have advocated

For KGF Peoples Movement
J. Backia Nathan
Convenor
Date: September 1,2000

arcngtl1 - " *

of ^iThey hrSS

C-JD-r^ “H-

CH limi F«t UTAININt NIMI AT «U
National Institute of Rock Mechanics, Champion Reef P.O.. KGF - 563 1 17
Phone Nos. (08153) 75004 & 75005, Fax : (08153) 75002, e-mail nirm@vsnl.com

J. Raja
Chairman
Cen. Seeretanj
NIKAl Em/flaijees Cnimi ®

A. Rajan Babu
Bafni
Chairman -■ Al
ternate
Altcniah'

D. Sanipatfi
Cimrenar
President
NIRM Em/daijees Ihiitni®

Members: M. Victor/ S.Udayakumar/ Sagaya Benady/ K Balachander

Ref. No. CRNIRM/55/2001-02

19/12/2001

Mr. L Ruga n a than
C’onvenor
Dalit Sangarslia Samit
Kolar Gold Fields.
Dear Sir,

Sub: Relocation of National Institute of Rock Mechanics to Nagpur
The National Institute of Rock Mechanics (NIRM) at Kolar Gold Fields (KGF) is an
autonomous Research Institute under the administrative control of Ministry of Coal & Mines,
Government of India This institute was established with President’s consent at KGF in
Jul\. [988 (previously a pail of BGML R&D unit) to cater to the needs of mining, civil
engineering and hydro-power sector in improving their efficiency, productivity and safety.
This institute was formed in KGF mainly to exploit the infrastructural facilities created by the
BGML and to utilize the expertise developed by the employees.

On 29>lh
lh November 2001, the Institute Director has addressed the employees and
informed that the NIRM has to be relocated to Nagpur from KGF as per the direction of the
Ministry. Eversince the institute is established in July, 1988 it is doing extremely well both
financially and in the field of research The present financial status of our Institute is
satisfactory' to the extent of attaining self sufficiency The working atmosphere is very
conducive and every one is living happily and peacefully.
At the crucial juncture of BGML closure and while KGF is passing through a
hardship of unemployment, poverty etc, the shifting of available facilities like NiRM, NIMH
etc will add to further social problems. We take this opportunity to inform you that, at NIRM
about 50% of the staff are from KGF. Also NIRM engaged about 35 people as contract
workers. It is needless to mention that shifting of the institute to Nagpur would deprive the
contract workers jobless and the staff of NIRM under great disturbance. Moreover loosing the
existing organizations like Directorate General of Mines Safety, Central Industrial
Security Fo’ce, National Institute of Miners Health, etc is a bad sign for KGF In order to
save the integrity of KGF and to work for the betterment it is necessary that such type of
biased thinking should be stopped immediately.

1

CMWirm m oiiuiie uni at iw
.L

National Institute of Rock Mechanics, Champion Reef P.O., KGF - 563 1 17
Phone Nos. (08153) 75004 & 75005, Fax : (08153) 75002, e-mail nirm@vsnl.com

/. Raja
Chairnian
Gen. Secretarij
NIRM Einjdoijees Union ®

A. Rajan Bahn
Bahu
eliairniaH
Cliaii niaii - Alternate

D. Satnyatft
Convenor
President
NIRM Employees Union®

Members: M. Victor, S.Udayakumar, Sagaya Benady, K Balachander

Under the circumstances, we are surprised by the decision of the Ministry to relocate
NIRM from KGF to Nagpur In this regard the sentiments and feelings of the employees of
NIRM is hereby enclosed for your perusal and necessary action. Also, in view of the above,
we request you to intervene in this matter immediately and do the needful to retain the
institute at KGF
Thanking you.

Your:

inc<

CHAIRMAN

cottMimt row muMi mm at k«t
National institute of Rock Mechanics, ('hampion Reef P O., KGF - 563 1 17
Phone Nos. (08153) 75004 & 75005, Fax : (08153) 75002, e-mail nirm@vsnl.com

J. Raja
C/iairman

Gen. Seeretan)
NIRM Enipioijees Union ®

A. Rajan Babu
Cliaifnian - Ahcrnaic

D. Sampatfi
Convenin
President
NIRM Enipiouees Union®

Members: M. Victor, S .Udayakumar/ Sagaya Benady, R. Balachander
Sub: Shifting of NIRM to Nagpur - our strong feelings and sentiments.

With reference to the above, we the Scientist & staff of N I R M
express our strong feelings and sentiments as follows

desire to

NIRM was established basically to continue the work fdone by erstwhile
Research and Development Unit of SGML in the area of Ground Control
which
------- ------is i
one of the major areas of research in the present NIRM.
It was established with a broad view and intention for restoring the name of
KGF which has a century old history of being a Golden City even though the mining
have come to a standstill in KGF. KGF has
nest locational
has the
the best
locational advantage
advantage with
with a
pleasant weather conditions. It is very well known that KGF mining industry has
produced lechnocrats and Engineers which arc world known in their contribution in
the field of mining. As such the significance of KGF cannot be looked down as
there is no mining activity at present
Ibis century old place should be remembered
by continuing the work done b\ prcx'ious Research Organisation

Moreover the cost of living in KGF is cheaper as compared to other
metropolitan cities and staff in NIRM with lower salary scales can also lead a happy
life without much financial constraints. If the institute is shifted to Nagpur they find
it extremely difficult to maintain their families in an atmosphere of exorbitant cost of
living.
Present financial status of our Institute is satisfactory to the extent of attaining
self-sufficiency This was possible by the best working culture and concerted efforts
of all Scientists and staff. The work culture that is being developed over the years
in bringing the Institute to the international excellence in the field of Rock
Engineering is worthy of emulation.

If the Institute is shifted to Nagpur, there is every
t
likelihood of being affected
by the diminishing work culture of other institutions which
—t are already in financial
doldrums.
Considering the vastness of our nation there should be a center of
research in the field of
of Rock Engineering in the South particularly at such location
which is very well known for
its mining significance which can cover
comprehensively the entire nation in
i the field of Rock Engineering Research which is
in accordance with the policv <of decentralization. In this era of highly developed

3

CONMimt Ml DETAINMe M* *» KW
National Institute of Rock Mechanics, Champion Reel P (), KGF - 563 I 17
Phone Nos. (08153) 75004 & 75005, Fax : (08153) 75002, e-mail nirm@vsnl.com
J. Raja
Cfiainnau
Gen. Scerctanj
NIRM Eniphoifees Cnion ®

A. Rajatt Baint
Baba
Clniii'HiiiH - Altcnuirc
Chairman
Alternate

'

D. Sampath
canrenor
President
N/RM Employees IhiioH®

Members: M. Victory S.Udayakumary Sagaya Benady, IT Balachander
communication systems distance does not pose any problems in communicating with our
clients who are far away from us and which we are doing without any time delay

Though it is argued that the Institute of National importance should be located
in big cities to attract national and international clients, NIRM has achieved its
excellence despite being in a non-metropolitan location which is against the argument
that KGF has a locational disadvantage. This cannot be linked to the closure of
BGML as we are not depending on BGML to build our infrastructure and we are
capable of developing infrastructure on our individual strength With this strength we
are making earnest efforts to attract our clients to our Institute.
Presently KGF does not face any security problems and the atmosphere is very
well conducive for peaceful living. In addition to that more than 80% of the staff are
being accommodated in mining quarters which arc located near to our Institute. As
such the staff presently are living peacefully without much problems Also many our
local staff have constructed their own house thinking tiiat they can live in their
house happy with their families . But relocation of our Institute causes lot of problems
to them by depriving their homage.

If the Institute is shifted to Nagpur there is every possibility of our staff
suffering out of locational disadvantage particularly our local staff whose children are
being educated in their local and State Government Syllabus. They find it difficult to
suit themselves to new atmosphere with different language. Moreover some of their
children are studying in Engineering Colleges and relocation of our Institute causes
lot of problems and land themselves in trouble to continue their education.
Another argument is that in view of the longstanding future of the Institute it will
be shifted to Nagpur. But this argument is aKo not sustainable because KGF has
every facility for its developments and with the present state of the Institute it is
possible to build the Institute to still higher levels.

Though a serious lapse has been committed in not registering the present NIRM
Complex from BGML to NIRM, a sincere attempt should be made in this regard as
there is a presidential consent for the transfer of NIRM Complex from BGML to
NIRM and this should not be a lame reason for relocating NIRM from KGF. If the
Institute is shifted to Nagpur there is every possibility of loosing its importance as it
will be a tiny entity in a big city which may not attract many of our customers

4

CttllTTK tt»

HIMI tt

National Institute of Rock Mechanics, Champion Reef P.O., KGF - 563 i 17
msi
75002 e-mail nirm@vs
nirm@vsnl.com
Phone Nos. (08153) 75004 & 75005, Fax . (08153)75002,
nl

j. Raja
Cftairman
Gen. Secretary
NIRM Empfoyees Union ®

A.
A. Rajan
Rajan Baba
Bafni
Cfiairinan
Cfiainnan - ACtcrnate
Ahcrnate

Samjmtfi
Convenor
Piesidlnt
N/RM Enipfoyees Union®

Members: M- Victor, S. (J dayahum ar, Sagaya Benady, R Balachander
We are getting most of the projects from all‘1 over India as it is located in KGF
(100 km from Bangalore) which we may
i . miss in Nagpur in a changed location

In this context it is worth mentioning that the findings of Economic Reforms
Committee is not correct as they have: taken
t---- arbitrary- decision without visiting KGF
weighing
the
ground
realities
and those decisions are purely based on
and do not

individual opinions.

Another argument is that man-days are being lost and increased expenditure in
TA and D A as the Institute is located in KGF. This argument is not sustainab e
because no project is being delayed so far, for these reasons and increased
expenditure in the form of T.A. and D A. is likely to occur not only for our Institute
j ; from faraway
but also any of the Institutes who take up rprojects
far away locations all over
India. Keeping to establishments onej iat KGF as a Headquarter and another at Nagpur will
of the institute.
increase the maintenance cost c.
--------- Hence, it is advisable to retain the entire
institute at KGF.

Over and above all these, approximately one thousand people have been
j
in our Institute like Security personnel,
benefited by way of indirect employment
Casual labour personnel, contractors --Civil
C.... and Electrical etc. Their families will be in
shifted.
Hence,
thinking should be given
doldrums if the Institute is t — ------- a comprehensive
.
considering all aspects with pros and cons on humanitarian grounds before taking a
final decision to relocate our Institute to Nagpur.

CHAIRMAN

5

C-Jr-. VA-

HUNGER STRIKE AT DELHI
TO SAVE BGML AND DEMAND NEW ECONOMIC
PACKAGE TO KGF.
KGF is now just few months away from a watershed;
If unchecked to an end of a glorious
past of Gold production and the opening of the flood gate
to accentuate povery, unemployment
and social turmoil.
"

The recommendation of the BIFR 1
workor^nrf A.; f
r
n u
to winduP BGML would spell disaster for the mining
marni i' r h
fam,!,es- Under such dispensation KGF has been reducecI
reduced to^ihe
to the ’status ol
of
marginalisation, a sense of Powerlessness^and a loss off identity as people.lived
■'* ' ' . ,here
. ■ for
. ■ more than
four generation.
.wo:
' ;
:
•'

Mining workers and thd people of KGF have
ft
u


' -'J been ^aciri9 a peculiar situation as the oppreaqaTnstTGF w nUP
“ b6came ^dden, unidentifiable, indirect and remote. The threat
PuneX whL ao
"
Of f,i9ht °f 0O,d' ,oss of jobs, enonomic stagnation and
sXte wh^r-h th
"hXr5!
reSUltS °f unco"tro"able and non-confrontable forces of the
State, which through their Very pervasiveness acquire an appearence of natural forces.
'
scivp Mrrno

baroaijnn W°rk,n? ®,a8S

broke!’ up 'n to numerous unions, therefore ite strength and

PO Hi s and h ek r>,S
6
trade;unions are also ^ddbad
fordtns of petty power
politics and bickerings, .ts soc.al and political weight declined and its ideaological elan is lost.
of GlobaSdn?^"9 ?

P^b,ems of eGW«- ^ust begin by taki^l^ amount the process

They ar not onl th
WhiCh
n0 hUman faCe aS C,aimed by the Government
deoendenrv f d
Pe0P'e 0Ut °f
j°bS’ but a,S° dangerously increasing the
dependency
Indian economy of foreign countries.
inore.^dU'iTi'iT
N’W
rolWw <h. number of sick mdueuial units has
Pubhc'see mTmt T ,o. 4lak(ha^i"a'0'> number of worker, are being affected. Many of the
app^tod b"?.
'Or“d ,O
centra! government and .he managers
106 cases of public sector undertakings have beeri handed over to Board of Industrial and
mmanded Io'h
to BiPB
?

<BIFR)- Twelve decisions have been taken,' Out of which tan were reco.
"""8' The G0ve""™"> PC'cles are such that handing eve. of a uni,

age group of 18—58
. ?
i working
^minimum■

article 41 of the constitution there are infant throe r 3
Thoi/9h reference is usually made to
adequate means of livelyhood ert^ 4 efatls to rioht m wn l Y
re'ateS tO ri£,bt to an
43 relates to right to wo'k and To a Hv/ng wage
P
assistanc6-' artic'e

Inspite of these constitutional provitions the globalisation, liberalisation and privalisaticn
have the import in harming the Indian industry and the work force is really having a time of
misfortune due to growing number.of retrechments, lay offs, lockouts and closure of units. These
a<e against the spirit of the constitution and indefiance to the tenets of democracy.
.'

-

■“



'O?



'iU...

The current crisis in BGML is not due to any immediate disastorous state of afairs but it
has the genesis in wrong government .policies and mismanagement, which forced BGML
to the plight of sickness and eventual closure. At the core of the mindless course of action to
windup the mines, the central government and the focal management have adopted a devious
strategy of total stoppage of mining operations and paying idle wages to BGML workers to
demoralise the work force and create panic among them. The cabinet decision and 3IFR reco­
mmendations to windup BGML appear to be more indicative of the government's intention to
hand over BGML to a foreign company,' in consequence of that- to reduce the man power to
thousand and odd and expose nation's wealth for rapid plunder in a matter of few years.
That the wholly serious issue cpnfranting Kolar Goldfields is the vicious circle of uhernployment. Once Kolar Gold Mines employed more than 32,000 workers, now the work^foPce has
been pathetically reduced to 4,000 who are on the brink of loosing their jobs. Kolar Gold, Mines
has produced more than 800 metric tons of Gold (worth Rs. 45,000 crores), The mine workers
and their families and two lakh population, of- KGF, majority of them are Dalits,* are entirely
depending on the mines for employment. Though government has done precious little to alliviate.
unemployment in KGF. ■»
-/ci i -o
mh b? e
-rf '/
,/s‘’

In the last two years KGF Peoples 'Movement and/ Solidarity group,;tiavfc launched ’ah
unprecedented peoples struggleTh KGF/lh theTrionth of January 2000 day and night idefenite.
Dharna and a cycle rally to Bangalore, were organised. A mafrimoth rally was organised^at
Bangalore on 20-3.2000'%apported.' by 10,000 vibrant .supporter,s.The. effect rotcthese struggles '
have been remarkable particularly at the^fete tdvel.
Followed by the above agitations KGF peoples movement and—DplhhBangalore Solidarity
group have decided to high light 'the issue at a natlorfal level through a campaign. Mine workers,
their dependents and the citizens of KGF will proceede to Delhi with a view to articulate our
demands in the Delhi corridors of power.

To voxe the rights of the people of K.G.F.
a relay hunger strike will be held from 2nd Sept, at, New Delhi
Oixn? Demands:
1)

2)
3)
4)

immediate release of funds to resume mining operations in BGML.J
Allocate Rs. 100 Crores for the revival of BGIVIL.
;
To settle long standing wage revision of ^GML workers.
Implementation of new package to create more employment opportunities
in KGF.
‘ /
W .
■ • '' ; J ■
.

• A

We earnestly appeal to,political parties, trade unions, progressive, movements and lik®
minded individuals to exteiid solidarity to the relay hifriger strike to support the cause of the
deprived and neglected,
neglected people of KGF.

K.G;F.

PEOPLES

MOVEMENT

J. BACKIANATHAN, Advocate
M. RAJKUMAR
Convenor
Secretary
Organising Committee:.
.
Susairaj Babu,
G. Bhaskar,
Debora,
Shanthi
/
Prasad Babuf . R.V., Kumar,
Caroline,
Kamatchi Ammal,
Rani,
Chandra

BANGALORE SOLIDARITY
N.P. SWAMY Convenor
KalajPress, Andersonpet. KGF.

GROUP



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The metal board arching over the shaft entrance was

so rusted, I could barely make out the lettering -Champion Reefs. Once upon a time a forbidden place,
now the gate stood wide open, hanging on a couple of
broken hinges. The security guard standing near the
opposite building saw my camera and beckoned to me
to go right in. It was traumatic. No pass. No safety
helmet. No smell of dust and ore. And not a miner in
sight.
The Kolar Gold Fields. Once upon a time a dream town,
with picture perfect houses and lawns and big shady
trees. Miners streaming out of the shafts, dark with the
dust of the underground, talking to each other about
mundane everyday things: debts and marriages and
children and wives. Where ore-laden trolleys rattled
along between the shafts and the processing units.
Where the ’oostle’ (siren whistle) regimented the lives of
the people and giant hoists lowered men into the belly of
the earth. Where the rumble of rock bursts deep
underground cracked walls and men died a thousand
deaths in search of the precious yellow metal.

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But now, everything stood still. Eerily silent. The mines were officially closed.
Dead. Deader than dead. I had just driven past rows of once-majestic
bungalows crumbling into dust. And now
this. A shaft head bereft of miners. As I
hesitated near the shaft entrance, the
guard urged me on. "Go right in. There is
nothing there. Nothing."

Inside, the giant hoists stood still. The thick
black cables which once lifted the cages
laden with men and ore were missing.
They had been brought all the way from
The Button Shaft of the Kolar Mines
England over a hundred years ago. Now
they lay coiled up in some unknown warehouse. The machinery was gone too.
Even the wagons were missing. Thorny bushes were beginning to grow on the
mud floor trodden flat by the feet of generations of miners.
I was listening to the stories of the silence when I heard the rattling. A big,
rumbling sound as if some machinery was working. The guard had said there
was nothing. And there was nothing. Nothing seemed to move. There was that

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rumbling again. Ghosts?
Terrified, I was about to run out. And then, I saw them. The monkeys. Lots and
lots of monkeys. Families playing on the hoists. Climbing those tall metal
girders. Jumping on the zinc sheet covering. And I heard the wind. The
famous gusty KGF wind rattling the zinc sheets.

Once upon a time, barely 150 years ago, the wind had blown unchecked
across this barren, thorny plateau. No one lived then on this rocky, waterless
unarable land.
But that was just a phase. It had not always been so. Legend goes that
hundreds of years earlier, during the reign of the Cheras, a poor shepherd
walking on this rocky plateau stumbled upon a treasure large enough to make
him a king. He called his kingdom Kolar. Nobody knows what happened to
that kingdom. And what was that treasure? Was it gold? Was it buried
treasure? No one knows that either.
It has been proven, though, that there were ancient gold mines in this area.
The first recorded reference to these 'native' mines came in 77 AD when the
Roman historian Pliny wandered through this land and found signs of mining.
He wrote about ancient abandoned pits, as deep as 200 feet. He found basic
digging tools and pots for carrying the ore.

No one, however, attempted to work these pits again and so another 1,800
years rolled by. The barren land remained untouched. Then, in the 1870s, an
adventurous British soldier named Lavelle was posted in the Bangalore
cantonment, barely a hundred kilometres away. He had heard of the old native
mines and was convinced there were rich veins of gold running through the
land. He managed to get a couple of army bigwigs to pool in money and form
a consortium, which in turn leased the land from the Maharaja of Mysore to
whom it belonged.

But gold didn't come out of the earth so easily. For several years, they dug in
vain. Finally, they hired the famous John Taylor and Company which had been
responsible for finding gold in Africa.

The rest is history. Rich veins of gold were struck in Marikuppam in 1880. By
1883, there were four shafts. The landscape changed rapidly. Colonial
bungalows with colourful gardens, club houses, hospitals, schools and long
rows of huts for the labourers mushroomed over the next couple of years. The
shafts sprang up like needles as more and more veins were struck.
By the 1920s, when the mining industry was at its peak, KGF occupied 30
square miles and supported a population of 90,000 people. Of these, 24,000
were employed by the mines; 400 employees were European and 400 were
Anglo-Indian. The rest were 'native' labourers, social and economic outcasts
drawn from neighbouring Tamil and Telugu areas.

Life in the mines was hazardous. A 1928 health report says there were four to
14 families living in each of the two-roomed huts provided by the company for
the labourers. The miners worked in the cavernous underground passages,
wearing flimsy hats made of bamboo and carrying oil lamps to light their way.
Temperatures often touched 67 degrees C. It was literally like working in hell.
And yet, life was comfortable. KGF got power as soon as the first power
station was opened. The local government, whose exchequer was

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considerably fattened with the royalty paid by the British company, was eager
to keep the mines going.
By 1901, gold production was peaking. Between 1901 and 1910, the grade
quality of the ore averaged at nearly 30 grams per tonne. In some years, it
even peaked to 40 GPT. In those 10 years, over 170,000 kg of gold was
extracted, all of which went directly to England.

The years rolled by. The Indian Independence movement left this little town
untouched. Only in 1956 did the government decided to nationalise the mines.
By this time, the GPT had dropped to 10. The mines were depleted, but there
was plenty of gold still left. Some of the shafts were the deepest in the world
and they were still being worked.
The ever-growing gray dumps of powdered ore bore testimony to the extent to
which the mines had been worked. Workers grumbled about the hard life and
health hazards. But they knew no other life. By the 1960s, most of the men
and women who lived in KGF had been born and brought up there. They had
developed their own special skills and did not want to live anywhere else. By
now, retrenchment was not just a distant nightmare. The veins of ore were
getting more and more difficult to find. No one knew what would happen to the
miners when they finally petered out.

A factory to manufacture earthmovers was set up on the outskirts of KGF near
a big banyan tree, with silver fox bats hanging from its branches, reflecting in
the pool located in front of it. But Bharat Earth Movers never really made an
impact on the lives of the miners, whose skill sets did not match the factory
requirements.
By the 1990s, things were serious. The mines were running at a terrible loss,
partly because of the government. The price at which gold was purchased
from the mines was much below the market price. Keeping the mines alive
had become a more and more unviable proposition. Yet, where was the
alternative?
And so came the decline. Retrenchment was the norm. Hiring came to a total
stand-still. The huge elegant houses began to decay with neglect. Criminal
elements began to take over the little town.

Meanwhile, long time residents tried desperate measures to find alternative
solutions. Vincent Abraham, a senior engineer who also handled mine's public
relations, speaks of the time they made a survey to see if the dying mines
could be turned into a tourist attraction as in South Africa.
The KGF, at 100 kms from Bangalore, is ideally located. The response from
the tourism industry was good. The bungalows could be turned into
guesthouses and tourists could go down the shafts in 'cages' that were 100
years old. However, New Delhi turned down the suggestion on the grounds
that a company which had been constituted to mine for gold could not diversify
into tourism. Several similar alternatives were also dismissed.
Foreign companies, which initially expressed interest in working the dumps of
mine tailings, later backed out. There was another proposal to start a hosiery
unit or somehow try and tap the knitting and embroidery skills of the women,
especially the Anglo-Indians.

Nothing worked.

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"No one in Delhi cares if the mines are closed or if people die here," said an
old-timer bitterly. "No one has even visited this place. They scoff when we talk
of the old times. As far as they are concerned, KGF has no historical
importance. The people can die. All that matters is that the mines no longer
make money."
The last few hundred miners who were left on the rolls when the mines were
officially closed have been offered a lay-off package but have gone to court,
egged by their union leaders. In KGF itself, many are divided over this issue.
Some feel they should take what is given and try and start a new life.
When Medha Patkar came to KGF a few months ago, to lead protest
marchers to the Vidhana Soudha (as the government in Karnataka is known),
one of the dissidents says he told her KGF was actually the birthplace of
activism and they didn't need people from outside coming to teach them to
protest. "Look where our protests have led us," he said angrily. According to
him, politicians of various hues and of varying degrees of importance have
visited KGF and promised to take care of them. But nothing ever materialised.

As a result of this tussle, the last of the miners have been hanging in limbo for
months together. No pay. No retrenchment benefits. Just Rs 4,000 released
from their own money to help them tide over the present dire crunch.
Meanwhile, hundreds of people commute from KGF to Bangalore everyday in
search of work. Some of the more fit young men find work with security
agencies. Women with basic English education picked up at the convent
school work as shop assistants. The money they earn just about helps them to
survive.

But, as things deteriorate in their town, they wonder how long they can
continue to live there. The company hospital is already closed. The KGF Boys
School, once the pride of the mining town, is a ruin. The houses are crumbling
as there is no one left to maintain them. The golf course, the club and the
open spaces have been taken over by brambles. Desperate for alternate
employment, some are talking of forming co-operatives to start sericulture,
since silkworm farming has been very successful in neighbouring villages.’In
order to do so, though, they need government permission to use the land and
seed money to start the venture.

Meanwhile, the monkeys take over the shaft heads, brambles swallow the
houses and people starve inside the once-famous labour lines. T S Eliot was
right. This is the way the world ends. Not with a bang but a whimper.
Also see:

It's not just the mines that teeter on the verge of extinction

Design: Rajesh Karkera
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government announced a Modified Voluntary Retirement Scheme (MVRS) in
respect of companies which were running at that date, in which twice the
compensation would be paid. Although the SGML unions have demanded the
implementation of the MVRS, the government has refused it on the ground that
the BGML was closed well before November 2001. This stand is questionable
as the issue of final closure still awaits a court decision.

With the closure of the mines now a reality, citizen's groups like the BGML
Revival Coordination Committee have tried to broad-base the "Save KGF"
campaign. One of their demands to the Central and State governments is to
make KGF, with its infrastructure, connectivity to Bangalore, good climate, and
ready workforce, an investment destination, particularly for the software
industry. This could provide the much-needed oxygen for KGF and its residents
to survive.

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Republication or redissemination of the contents of this screen are expressly prohibited
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am#

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G-Ot^ H -

Frontline

Volume 19 - Issue 11, May 25 - June 07, 2002
India's National Magazine
from the publishers of THE HINDU

zS* THE STATES

Frontline
I

Death of a mine
a With the closure of Bharat Gold Mines Limited now a reality, the livelihood
1 concerns of its 3,800-strong workforce come to the fore.

i'

F

Table of
Contents

PARVATHI MENON
in Kolar Gold Fields

AT least 5,000 commuters pack the morning Suvarna Express train from Kolar
Gold Fields (KGF) to Bangalore each day. A majority of them are employees of
Bharat Gold Mines Ltd who have been out of work ever since the BGML
management declared its closure in April 2000, and stopped paying wages from
March 2001. This decision led to the swift descent into poverty of a majority of
the 3,800-strong workforce and their families, the overwhelming majority of
whom are from Scheduled Caste and Scheduled Tribe backgrounds. The
workers, fourth generation miners who operated Asia's largest and deepest gold
mine, now travel to Bangalore each day to seek work as construction labourers,
head load workers, watchmen, waiters...

S. Ganesh, an underground worker in the Mysore Mines, works as a mason at
Rs.80 a day, hardly enough to maintain his family comprising his wife and three
children. He has pawned his belongings of value and has accumulated debts of
Rs. 30,000.

Workers of Bharat Gold Mines Ltd, and their
families, take out a rally in Bangalore
demanding alternative jobs.
' i

S. George, a worker for 22 years in the central
BGML workshop, has ten family members EgjMg
including seven children between the ages of^^A
seven and 19. "I have been working off and on asKRp
a security guard, but the wages are even lower®®
than the Rs.2,000 I used to take home as a BGML worker. I am now in debt for
Rs.80,000," he said. "Our condition is desperate. We eat two instead of three
meals a day and we don't know how we are going to survive," he says.

i

Many of the workers are deeply in debt. "Even the seth (moneylender) now says
he has no money to give us," M. Kavita, an employee's wife said. She and her
husband M. Kirubakaran pawned their valuables for Rs. 15,000 and have
accumulated loans amounting to Rs.20,000. They have taken to selling

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Death of a mine

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vegetables from their house. "We are lucky if we make ten or fifteen rupees a
day from this," Kavita said.

Even though the Karnataka High Courthas not taken a final decision on the
company's fate, there is a deep and perceptible sense of despondency and loss of
hope amongst the workforce, reflected in the talk^of mounting debts, starvation,
death and suicide. "Several workers have died since the closure, owing to illhealth and lack of medical care, and in a few cases they have committed
suicide," S. Shekharan, a miner for 23 years, said. "My family survives thanks to
my brothers and sisters in Bangalore who help us." This correspondent went to
the home of P. Pushparaj, a worker who hanged himself two months ago. The
small hut was locked as his wife and daughter were away in Bangalore for the
day. Neighbours said that Pushparaj left a suicide note in which he stated that
the company’s closure, which led to his personal difficulties, was the reason for
his taking the drastic step.
Francis Kumar, 40, a worker who had three young children, developed high
fever one evening. Rushed to hospital, he died the next morning. Francis' health
had deteriorated since the closure, his family members said. He used to work
late hours as a restaurant waiter, and was deeply worried about the future and
what it held for the children. His family is being helped by kindly, and relatively
better off, neighbours.

"So much publicity has been given to the suicides of farmers in different parts of
the State," K. Rajendran, general secretary of the Janata Dal (S) labour cell, said.
"There have been at least 40 deaths since the closure of the mines, all of which I
believe were directly or indirectly linked to the closure."

THE entire KGF township withjtsjpopulation of three lakhs, and not just the
employees, depended on BGML foTsurvivai: The death of the mines is choking
its economy. The once humming township, set in picturesque, undulating
countryside and given the name of'Little England', is today silent and listless. Its
residents find it hard to refashion their lives to a harsh new reality. The closure
has affected every aspect of life and even the physical environment of the
township. The shops and commercial establishments depended on a workforce
with purchasing power. The local job market has shrunk, and even small
manufacturing units, once dependent on the BGML, have closed down.

The worst affected, however, are the residential areas where over 70JlQ0_persons
- workers, ex-workers, and their families - live in small asbestos sheet-roofed
homes. The company has withdrawn electricity, water ahcTsanitation services.
Many homesTiaVe had their electricity connections cut as workers can no longer
aff°rd to pay their bills. It is a common sight to see waiting queues of women
with their plastic pots near the few water pumps in the miners' quarters.
Sanitation services have been all but withdrawn from the colonies, and the
stench of clogged sewage drains, and piles of uncleared garbage and refuse,
permeates the living space. During the course of the year-long closure battle in
the High Court, the BGML management handed over the sanitation and water
supply functions to the Robertsonpet City Municipality and agreed to provide an
assistance of Rs.50 lakhs. But sanitation and garbage disposal work have been

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I

Death of a mine

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almost stopped now, allege the residents of the colonies.

Yet another aspect of the situation that has caused anguish to SGML families is
the matter of their children's education. The KGF township has several schools,
both government and privately run. Workers now find it difficult to afford the
fees, and the cost of books and stationery. Several employees said that schools
did not release their children's results this year as fees had not been paid. M.P.
Arogyadas, a teacher of Tamil in the St. Mary's Boys Higher Primary School,
said that the pupil strength of the school had fallen and was only 250 now. Many
parents are pulling children out of school as they cannot afford the fees and are
sending them to work in shops, restaurants and automobile repair sheds. "Two
of my sixth standard students, Prabhu and Karthik, are today working in a shop,"
he said. With their own lives a shambles, workers hoped that their children,
armed with an education they themselves did not get, would build new lives’
That dream is being shattered.

"The situation of the workers is desperate and the township itself is threatened,"
said K. Rajendran. "Employees are now taking up all kinds of low paying jobs construction work, painting, bar bending, loading and unloading. Some are even
engaged in the cutting and selling of wood. Why are successive governments
neglecting the plight of KGF?"
In its history of over two centuries, the Kolar Gold Mines has changed
ownership several times. The mines were handed over to the Central
government by the Mysore government in 1972 and became a public sector
undertaking. By 1992, accumulated losses were over Rs.502 crores and it went
before the Board of Industrial and Financial Reconstruction (BIFR). While
successive managements have presented the company's losses as being the result
of the terminal depletion of high grade ore and the consequent increase in the
cost of production, the unions and some industry analysts have taken a different
point of view. According to them, the primary reason for the losses was the
government's gold pricing policy. Till 1988, the Government of India, the sole
purchaser of gold from BGML, was paying for it at the London Metal Exchange
rate, which was just 10 per cent of the cost of gold in India. The difference in the
price, which should have been given to the company as a subsidy, was instead
given as a loan on interest. This put an enormous and unfair burden on the
company.

A closed mine shaft at Kolar Gold Fields.
I

The BIFR appointed the Industrial Credit and
Investment Corporation of India (now ICICI Ltd) as
the company's operating agency. In July 1997, ICICI
recommended a rehabilitation package which
envisaged an infusion of fresh capital of Rs.200
crores, an option that the Central government
rejected. Several proposals for the running of the
mines were made to the government, the BIFR and
the Appellate Authority of Financial and Industrial,

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’••J;

1

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Death of a mine

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Reconstruction (AAFIR). The unions put their own revival package before the
BIFR in January 2000. This envisaged the company being given access to a
revolving fund of Rs. 10 crores from a financial institution. Under this scheme,
bank credit was to have been on the hypothecation of stocks of raw material,
semi-finished goods and bills. The scheme anticipated that the company would
break even in the third quarter of a two-year period.
Apart from schemes for conventional mining, a scheme was put up for surface
mining. In July 2000, the Bharat Gold Mines Employees Union (BGMEU) put
up a proposal before the AAFIR for extracting gold from the tailings. The
tailings - the waste soil which over the years has formed long stretches of steep
ridges, changing the landscape of the region - contain deposits of trace gold.
"There is a gold mine above the mines," said V.J.K. Nair, president of the
BGMEU. "Technical survey reports and government instituted surveys say that
the 34 million tonnes of tailings contain 0.75 grammes of gold per tonne. This
has a value of Rs. 12,000 crores and can be processed for the next 16 to 18
years." The average realisation of gold per tonne when the mines were in
operation was 2 gm, which has gone up to a maximum of 5 gm in some years.
This scheme required an investment of around Rs.60 crores and, according to
Nair, would have generated a profit of Rs.90 crores once the project was fully
implemented. Nair said: "The AAFIR heard us out and actually gave a stay on
the BIFR proceedings for a period of 45 days asking us to find the money. The
government at that time had offered a voluntary retirement scheme (VRS) of
Rs.80 crores. Why could not they have used that to find ways of keeping the
mines open?"

On April 16, 2001, the High Court quashed the closure order issued by the
Ministry of Labour under Section 25(0) of the Industrial Disputes Act, 1947.
The winding-up order issued by the BIFR was also quashed by the court and it
directed the BIFR to consider revival proposals. Operations had closed from
April 2000, although idle wages were still being paid. The government and the
company went in appeal to a Division Bench of the court and got a stay on the
order of the single bench. "Although the court only issued a stay, the company
proceeded on the assumption that the closure order was revived," said R.N.
Godbole, general secretary of the Professional Workers Trade Union Centre of
India (PWTUC). "They began to sell assets, like machinery, and in March this
year, stopped paying wages." The Karnataka Electricity Board stopped power
supply to the mines as the BGML was in arrears and was unable to pay its dues.
With no power to pump water out, the centuries-old mines have now got
flooded. "This is really a criminal act in which none will be held accountable,"
said Godbole. "The mines have been made inoperable, even for use at a future
date. Lifts and machinery left in the shafts would have become totally
unserviceable."
Although the unions are holding on to their demand that the mines be reopened,
in practical terms it is a fair VRS package that they are now fighting for. In
December 2000, the management offered a VRS that involved the payment of
45 days' salary for every year of service. Since there had been no major pay
revision in BGML since 1987, the compensation the workers would have got
would have been poor. The unions rejected this package. In November 2001, the

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It's not just the mines that teeter on the verge of extinction
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For nearly two decades now, the Kolar Gold Fields, or KGF, in
BIZ IN THE USA
Karnataka
have been teetering on the verge of death. Yet, when they
CARS&JVIOBIKES
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Distraught miners, whose families have lived there for more than four
generations, insist there is still some life in the mines.

There may be some unexplored gold-bearing veins inside the world's
deepest mines, they say. And, until those are discovered, the
authorities should at least rework the cyanide dumps made up of the
milled remnants of gold-bearing ore.
Or do something to keep hope alive. For, if the mines died, they
would have nowhere to go.

The mines have died many deaths before this. Few people know that
gold mines existed in this area long before the British arrived. Roman
historian Pliny who passed through here in 77AD wrote of extensive
gold and silver mines.
In the 1850s, an Irish soldier named Lavelle, while recuperating in the
salubrious Bangalore Cantonment, after fighting the Maori war in
New Zealand, heard of these "native mines" around Kolar and decided
to investigate.

He found abandoned pits that sometimes went down to about 250 feet
and more. He even found foot niches in the mud walls and some
ancient mining equipment. There were signs of the wood fires that the
miners had used for heating the walls of the pits.

But, there were no miners and no gold.

Obviously, even the early miners, having exploited the pits to the limit
of their technological capacity, must have declared the mines dead
and left.

The next re-incarnation of the mines began when Lavelle decided to
look for gold himself. Armed with a lease for exclusive prospecting

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rights from the Maharaja of Mysore he set out prospecting in the
rocky hills beyond Kolar. The year was 1875.
Lavelle found nothing. He did not have the money to carry on, but he
was convinced there was plenty of gold to be found.

Ini 877, he sold his rights to a consortium of rich army big wigs who
floated a private limited company. Over the next couple of years, at
least eleven private companies were floated. Most of them gave up
and closed shop.
The Mysore Mine Company hired the British engineering firm John
Taylor and Sons flush with its success in the gold mines of Africa, in
1880. A last ditch effort was made in 1883. And behold, they struck
gold! The veins were so rich and extensive that the consortium
decided to sink four shafts.

Those were plush years. Everyone now wanted a finger in the pie. The
Mysore government, its exchequer considerably fattened by royalties
from gold mining was careful not to antagonise the British
prospectors.
Some government officials, however, did have misgivings. A letter
from the finance secretary in the Mysore government court file dated
1893 says, "...the mining industry is not exactly in the same position
as regards the ultimate effect on the wealth of the country as
manufacturing or agricultural industries. It will result in a certain
amount of wealth being taken out of the country which can never be
replaced."

But such qualms were overcome when the British agreed to pay extra
royalty, in return for which they were allowed to directly ship out of
the country all the gold that they mined.
There were teething problems. The Gold Fields lay in the middle of
rocky, unarable, unpopulated land.

According to a local legend, Kolar was named after a herdsman who
created his own little kingdom in this hostile land after he discovered
great buried treasure during the reign of the Cholas.
By the late 1800s, there was no sign of that treasure and there was no
local population to speak of. But, the mines needed men. Plenty of
them. For, mining was a labour intensive and dangerous job.
The locals were reluctant to give up their traditional occupations and
enter this risky profession even though the British were willing to
offer them special incentives like housing, schooling, health care and
enhanced pay packets.

http.7/www.rediff.com/business/2000/may/06gold.htm

9/19/2004

rediff.com Business News: It's not just the mines that teeter on the verge of extinction

Page 3 of 5

And so, finally, the mines attracted only the desperately poor social
and economic outcastes from neighbouring areas who had nothing to
lose. They were the drifters who in those early days drifted in and out
when they found the going too tough.

Though the Gold Fields lay in the Mysore Maharaja's territory, they
were on the border. The migrant labour came in essentially from
neighbouring Tamil speaking areas. It was an ideal situation as far as
the British were concerned and they exploited it as well as they could.
Mining was a new activity. Unlike trading or waging war, it required
engineering skill, scientific knowledge. For those willing to take the
risk, it promised untold wealth.

The Mysore government too was enthusiastic. In fact, one of the first
priorities of the hydroelectric project which came up at Sivasamudram
at the turn of the century was to supply power to the gold mines.
By the end of the nineteenth century, a brand new British colonial
town was in place, complete with sprawling bungalows, clubhouses
and gymkhanas.
The 'natives' living in the 'coolie lines' serviced the mines as well as
the British Township. A 1928 health report says there were four to
fourteen families living in each of these two-roomed huts provided by
the c’ompany.

The miners worked in the cavernous underground passages, wearing
flimsy hats made of basket and carrying oil lamps to light their way.
Temperatures often touched 67C. It was literally like working in hell.

By 1901, gold production was peaking. Between 1901 and 1910, the
grade quality of the ore averaged at nearly 30 grammes per tonne, or
GPT. In some years it even peaked to 40 GPT.

In those ten years over 170,000 kg of gold was extracted.
In the 1920s, when the mining industry was at its peak, KGF occupied
30 square miles and had a population of 90,000. Of these 24,000 were
occupied in the mines. Only 400 of these employees were European
and another 400 were Anglo-Indian.

A British journalist visiting KGF in the 1930s was eloquent about the
'modem' and progressive township.
But conditions underground were pretty bad. Old timers recall
crawling down the shafts, striking matches to illuminate their way.
Their bodies burnt with heat as if they were in 'Yamalokam'.

http://www.rediff.com/business/2000/may/06gold.htm

9/19/2004

rediff.com Business News: It's not just the mines that teeter on the verge of extinction

Page 4 of 5

Over the years things improved. The shafts became air-conditioned.
Though miners continued to go down to the bowels of the earth in
precarious looking "cages", they were now equipped with good
helmets and torches.

The Indian independence movement passed the mining town by. Until
the mines were nationalised in 1956, the British continued to send
their quota of gold 'home' every month.
By the time the Mysore Government took over these depleted 'holes in
the ground', the GPT was less than 10. The colour of the town
changed overnight. The white man abruptly left and the Indian
inheritors slid effortlessly into the social structure.

Business went on as usual. The mines were depleted, but they still
yielded gold. Retrenchment and closure were just threatening words
that were bandied about.

Even as early as the 1960s, however, plans were afoot to find alternate
employment for the miners. Bharat Earth Movers, or BEML,
established a plant that was supposed to ultimately absorb a portion of
the large workforce that was becoming increasingly redundant. This
never really worked out.
By the 1980s, the mines celebrated their centenary and closure looked
imminent. And still they dragged on.
By the end of the twentieth century, KGF had become a ghost
township. The beautiful old bungalows with their once glorious
gardens lay in shambles.

The tiny Bethemangalam reservoir, which used to provide the town
with plenty of water, became totally inadequate and water shortage
was chronic.

The hospitals, the schools, the swimming pools, the clubs and the
thriving infrastructure put together by the British to suit their taste and
convenience had all disintegrated.
And yet people lived and worked inside that shell.

As for the miners and the families their forefathers might have drifted
in from elsewhere. But, now KGF is their ancestral home. And mining
their ancestral skill. How can they accept the death of the mines?
ALSO SEE

Kolar gold mine workers appeal to PM, seek longer lease of life for
mine

http://www.rediff.com/business/2000/may/06gold.htm

9/19/2004

rediff.com Business News: It’s not just the mines that teeter on the verge of extinction

Page 5 of 5

Peaceful protest marks death of a goldmine
Business
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9/19/2004

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ZA

IN THE HIGH COURT OF KARNATAKA,
BANGALORE
Dated this the 26th day of September, 2003

BEFORE
THE HON'BLE MR JUSTICE R V RAVEENDRAN

AND

THE HON’BLE MR JUSTICE K L MANJUNATH

Writ Appeal Nos 17^7 to 1757 of 2001 (L)

In WA No 1747 of 2001 (L)
BETWEEN:

1.

Bharath Gold Mines Limited
Rep. By its Chairman and
Managing Director
SuvamaBhavan
Oorgaum Post
KGF-563 120
Kolar District

2.

The Union of India
Rep by the Secretary to Government
Ministry of Mines
Shastri Bhavan
New Delhi- 110 001

I

...Appellants

(By Sri R Gopalan, Additional Solicitor General for
Sri N Devadas, ACGSC)

1Ar

A

J

Whis Copy Contain^....
and Court Fee Slumps of

sf °jfixed.

I


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V.

AND:

Az

1.

Bharath Gold Mines United Employees’
/Xssociation (A registered Trade Union Registered
Under the Indian Trade Unions Act)
Represented by its President
No.L-46, N T Block
Electrical Quarters, Oorgaum Post
Kolar Gold Field - 563 120
Kolar District

2.

The State of Karnataka
By the Secretary to Government
Department of Commerce and Industries
M S Building, Bangalore - 560 001

3.

The State Bank of Mysore
Represented by its
Chairman and Managing Director
P.B.No.9727, K.G. Road
Bangalore - 560 009

4.

The Industrial Credit Investment
Corpn. of India by the Chairman
No. 163, Backbay Reclamation
Mumbai

5.

M/s Karnataka Gold Mining N.L.
By the Managing Director
having its Regd. and
Head Office at Nagpur
Maharashtra State

6.

Board for Industrial and Financial
Reconstruction (B1FR), 22nd Floor
Javahar Vvappa Bhavan
No. 1, Tolstoy Marg
New Delhi - 110 001

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)

___

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3

7.

Appellate Authority for Industrial and
Financial Reconstruction, 10th Floor
Jeevan Prakash, No.25
Kasturba Gandhi Marg
New Delhi 110 001

.. Respondents

(By M/s Subba Rao & Co., Advocates for R1;
Smt Shobha Patil, AGA, for R2;
Sri Udaya Holla, Advocate for R5;
Sri M C Narasimhan, Advocate for R6;
Respondents 3, 4, and 7 notice dispensed with)
Writ Appeal is filed under Section 4 of the Karnataka High
Court Act praying to set side the order passed in WP No. 1343 of2001
dated 16-3-200k
In WA Nos 1748-1750 of 2001 (T.)

BETWEEN:
1.

The Union of India
by the Secretary
Ministry of Heavy Industries and Public
Enterprises,
Department of Public Enterprises
Public Enterprise Bhavan
Block No. 14, CGO Complex
Lodi Road, New Delhi - 110 003

2.

The Union of India
by its the Secretary
Ministry of Mines, Shastri Bhavan
New Delhi - 110 001

Bharath Gold Mines Limited
a Government of India Enterprise
Suvama Bhavan, Oorgaum,
KGF - 563 120, Kolar District
/

4

By its Chairman and
Managing Director

...Appellants

(By Sri R Gopalan, Additional Solicitor General for
Sri N Devadas, ACGSC)

AND:

(

1Z-

1.

Bharath Gold Mines United Oficers’
Association, Oorgaum Post
Kolar Gold Field - 563 120
Karnataka, by its Secretary
Mr. K M Diwakaran
S/o Sri Palani, aged 43 years

2.

Bharath Gold Mines Employees
Union (CITU) with its Registered
Office at Marikuppam, KGF
Kolar District
By its Secretary Savaridoss
S/o Sri Savariappan, 81 years
R/o Marikuppam, KGF

3.

K S Shobachala
S/o Narayan Kakade
39 years, Sr. Mining Engineer
Bharath Gold Mines Ltd
KGF, Kolar District

4.

The Chairman and Managing Director
I.C.I.C.I. No. 163
Backbay Reclamation, Bombay

5.

Board for Industrial and Financial
Reconstruction (BIFR)
No.l, Tolstoy Marg
New Delhi - 110 001
Rep. By its Secretary

/

5

6.

Appellate Authority for Industrial and
Financial Reconstruction, 10th Floor
Jeevan Prakash, No.25
Kasturba Gandhi Marg
New Delhi 110 001

Respondents

(By Sri M Rajanna & R Ramesh, Advocate for R1 to 3;
Respondents 4 to 6 noticed Dispensed with)

Writ Appeals are filed under Section 4 of the Karnataka High
Court Act praying to set side the order passed in WP Nos 157-159
of2001, dated 16-3-2001.
In-WA No 1751 of 2001 fl.)
BETWEEN:

1.

Bharath Gold Mines Limited
SuvamaBhavan
Oorgaum Post
KGF- 563 120
Kolar District
The Union of India
by its Secretary
Shastri Bhavan
New Delhi - 110 001

AND:
1.

u

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48S
W

(By Sri R Gopalan, Additional Solicitor General for
Sri N Devadas, ACGSC)
NT's Karnataka Gold Mining N.L.
A Company incorporated under the
Australian Laws and having its Regd
Office at No.7/400, Queens Street
Brisbane, Queensland, Australia
By its M.D. Mr. David Jolin Catsoulis

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>

...Appellants

I



6

2.

The Industrial Credit Investment
Corporation of India, rep by its
Chairman and Managing Director
No. 163, Backbay Reclamation
Mumbai

3.

Board for Industrial and Financial
Reconstruction (BIFR)
No.l, Tolstoy Marg
New Delhi - 110 001
By its Secretary

4.

Appellate Authority for Industrial and
Financial Reconstruction, 10th Floor
Jeevan Prakash, No.25
Kasturba Gandhi Marg
New Delhi 110 001

.. Respondents

(By Sri Udaya Holla, Advocate for Rl;
Respondents 2 to 4 Notice Dispensed with)

Writ Appeal is filed under Section 4 of the Karnataka High
Court. Act praying to set side the order passed in WP No. 7987 of
2001, dated 16-3-2001.
In WA No 1752 of 2001 (L)

BETWEEN:

1.

Bharath Gold Mincfi Limited
SuvamaBhavan
Oorgaum Post
KGF - 563 120
Kolar District
By its Chairman and
Managing Director
A

(

V)

7

2.

The Union of India
*•
Rep by its Secretary to Government
Ministry of Mines
Shastri Bhavan
New Delhi - 110 001

3.

The Union of India
Rep by its Secretary to Government
Ministry of Labour
Sharma Shakti Bhavan
Rafi Marg
New Delhi 110 001

• ■•Appellants

(By Sri T Gopalan, Additional Solicitor General for
Sri N Devadas, ACGSC)

AND:

) r

1.

Bharath Gold Mines United Employees’
Association (A registered Trade Union Registered
Under the Indian Trade Unions Act)
Represented by its President
No.L-46, N T Block
Electrical Quarters, Oorgaum Post
Kolar Gold Field - 563 120
Kolar District

2.

The BGML Labour Association
Oorgaum Post
KGF - 563 120
By its Secretaiy

3.

The BGM Employees’ Union
Marikuppam
PO, KGF 563 119
Kolar District,
By its Secretary
/

8

5/

4

The BGM Workers’ Union
Republican House
Anibcdkar Nagar
Robertsonpet
PO, KGF 563 122
By its Secretary

5

The BGML Labour Progressive Front
No.ll5,NT Block
Oorgaum Post, KGF - 563 120
By its Secretary.

6

ITie BGM Workers Association
No.537, Edgar’s Block
Marikuppam Post
KGF-563 119
By its Secretary

7

The BGML Workers’ Anna Trade
Union, “O” Daniel Road
Andersonpet PO
KGF-563 113
By its Secretary

8

The BGML Medical Health and
General Employees’ Union
BGML Hospital Compound
Champion Reef PO, 53117
Rep. By its Secretary

9

The KGF Electrical Department
Labour Association, B Type Quarters
Near Allied Ration Depot
Oorgaum Po, KGF-563 120
By its Secretary

10

The BGML Employees’ Association
No.832, Near Hockey Ground

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A/

•*

9

Oorgaum Post, KGF-563 120
By its Secretary

11

The B.G. Miners’ Association
No.545, Near Punjabi Line
Oorgam PO, KGF-563 120
By its Secretary

12

The BGM Janatha Mazdoor Union
BM Road, Andersonpet
PO, KGF-563 119
Kolar District, By its Secretary

13

The SGML Labour Union
Marikuppam PO
g
KGF-563 119, Kolar District
By its Secretary

14

The BGM Corporate Employees”
Association
No.C-5331, Italian Mess Quarters
Behind Giffords Shaft
Champion ReefPO
KGF-563 117, Kolar District
By its Secretary

15

The Janatha Dal Labour Federation
Robertsonpet
PO KGF-563 112
Kolar District
By its secretary

16

The BGML Dr. Anibedkar Workers’
Union, No.40, Rangaih Compound
3rd Cross Road, Near St. Theresa’s
Convent, Robertsonpet
PO, KGF-563 112
By its Secretary

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10

17.

The BGML Supervisors’ Assn
No.7, M Block, Champion Reefs PO
KGF-563 118
Kolar District
By its Secretary

18.

The Ramagiri Gold Mines Workers’
Union, Ramagiri Post
Via Dharmavaram
Ananthapur Dist
Andhra Pradesh
Rep by its Secretary

19.

The Chigargunta Gold Mines
Workers’ Union
Gurupalli Post
Gurupalli Mandal
Chitoor Dist
Andhra Pradesh
By its Secretary

.. Respondents

(By M/s Subba Rao & Co., Advocates for R-l;
Respondents 2 to 19 Notice Dispensed with)

Writ Appeal is filed under Section 4 of the Karnataka High
Court Act praying to set side the order passed in WP No 5118 of
2001, dated 16-3-2001.

In WA Nos 1753 to 1757 of 2001 (L)
BETWEEN:

1.

7^ (
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)<I|
c? J/

The Union of India
Rep by the Secretary to Government
Ministry of Mines
Shastri Bhavan
New Delhi - 110 001

11

2.

Bharath Gold Mines Limited
A Government of India Enterprise
Suvama Bhavan
Oorgaum Post
KGF-563 120
Kolar District
Kolar Dist
by its M.D.,

3

Smt. Padma Balasubramanian
Joint Secretary
Ministry of Labour
Shrama Mantralaya
Government of India
New Delhi 110 001

4

B M David
Under Secretary to Government
of India, Ministry of Labour
New Delhi-110 001

...Appellants

(By Sri R Gopalan, Additional Solicitor General for
Sri N Devadas, ACGSC)
AND:

Il8(

w.

1.

Bharat Gold Mines Officers’
Association, Oorgaum Post
KGF-563 120
By its Secretary
K.M. Diwakaran s/o Sri Palani

2.

K S Shobhachala
S/o late Narayana Kakade
39 years, Senior Mining Manager
BGM Ltd., N Dmine, Oorgaum Post
KGF-563 120
Kolar District

it
)*
>

/

- ('

12

3.

Professional Workers Trade Union
Centre of India (PWTUC) Regd. under
The Trade Unions Act, 1926 with its
Central Office at State Bank Building
PB Nc.5174, St. Marks Road
Bangalore - 560 001 by its
Gen. Secretary G N Godbole, 65 years

4.

B Yeswantharaju
S/o K M Balakrishnan, 40 years
Foreman (Mining) BGML
KGF-563 120

5.

Bharath Gold Mines Employees
Union (CITU) with its Regd. Office at
Marikuppam, KGF
By its Secretary Sri Savaridoss
S/o Savariappan 81 years - -

..Respondents

(By Sri M Rajanna and Sri R. Ramesh, Advocates for
Respondents I to 5)

Writ Appeals are filed under Section 4 of the Karnataka High
Court Act praying to set side the order passed in WP No. 4504 to
4507 of 2001, dated 16-3-2001.

These Writ Appeals are coming on for hearing this day,
RAVEENDRAN J delivered the following:

JUDGMENT
These appeals are by the Bharat Gold Mines Ltd., [‘BGML’

for short] and the Union of India, against the common order dated
16-3-2001 passed by a learned Single Judge allowing WP Nos 1343,
./
/

cd (

13.

157-159, 5118 and 4503-07 of 2001 filed by different Employees

Unions of BGML and WP No 7987 of 2001 filed by the Karnataka
Gold Mining NL [for short KGM-NL] an Australian company

interested in taking over BGML.

2.

In WP. 1343, 157-159 and 7987/2001, the challenge was to the

order dated 12-6-2000 passed by the Board for Industrial Finance &
Reconstruction, New Delhi [BIRR] in Case No 505 of 1992,

recommending winding up of BGML under Section 21(1) of tire Sick
Industrial Companies (Special Provisions) Act, 1985 [SIC Act for

short] and the order dated 29-11-2000 passed by the Appellate

Autliority for Industrial & Financial Reconstruction [AAIFR] in

Appeal Nos 277;^ and 291 of 2000, confirming the order of BIFR.


In WP.5118 and 4503-4507/2001, the challenge was to the Order
dated 29-1-2001 passed by Government of India for closure of
BGML with effect from 1-3-2001, under Section.25(0) of Industrial

Disputes Act, 1947. (ID Act' for short). The details of the writ
petitions and the reliefs sought and corresponding writ appeal

are given below:

//o <
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>1 ■

r
14

Writ
Appeal
Number
WAI 747/
2001

Arising from
writ petition
number
1343/2001

Petitioners in Writ
Petition

Relief Sought in the Writ
Petition

(i) to quash the order dated 1511-2000 of AAIFR and Order
dated 12-6-2000 of BIFR.
(ii) to direct Government of
India to reconsider the matter
and see that BGML is not
wound up,_but is revived._____
157-159/206!
1. BGM Officers To quash the Order dated 15WA.174811-2000 of AAIFR and the
Association.
50/2001
2. BGM Employees i Order dated 12-6-2000 of
BIFR.
Union (CITU)
3. K S Shobhachala.
Gold (i) to quash the order dated 15Karnataka
WA.1751/ '7987/2001
11-2000 of AAIFR and Order
Mining NL
2001
dated 12-6-2000 of BIFR.
(ii) To direct the Government,
of India to approve the scheme
submitted by KGMNL for
revival/rehabilitation of BGML
with necessary modification or
I
! in the alternative to formulate a
scheme
Cor
revival
or
i
! rchabilitationof BGML.
United-! To quash the order dated 29-1- '
BGM
5118/2001
WA.1752Z
I 2001 passed b}' Government of i
Employees
2001
India for closure of BGML with i
Association
Officers
effect, from 1-3-2001, under !
'
1.
~B(
j
M
WA.1753- 4503-4507/
Section. 25(0) of Industrial
Association.
57/2001
2001
Disputes
Act, 1947.
2. K S Shobachala.
3.
Professional
Workers
Trade
Union Centre of
India.
i 4. B Yeswantharaju.
| 5. BGM Employees !
jjJnion (CITU).]

3.

BGM
Employees
Association

United

BGML is a government company wholly owned by the

Government of India, incorporated in the year 1972.

) < i?

//

Originally

15

gold was exploited in Kolar Gold Fields (KGF for short) by M/s
Jolin Taylor & Sons. The gold mines were acquired by the

Government of Mysore in the year 1956.

In December, 1962, the

mines were transferred to central government for operation as a

departmental undertaking known as Kolar Gold Mines Undertaking

[KGMUJ. In the year 1972 a new company was promoted and
incorporated by the Central Government under the name and style of
Bharat Gold Mines Ltd

Ever since its inception in the year 1972,

BGML has been incurring losses. As the net worth of the company
became less than the accumulated losses and thus became a ‘Sick

Industrial Company’ as defined in the SIC Act, the Board of
Directors of the company passed a resolution dated 13-2-1992 for

making a reference to BIFR for determination of the measures which

shall have to be adopted with reference to the company.
Accordingly, a reference was made under Section 15(1) of the SIC
Act which was registered as Case No.505/1992 on the file of BIFR.
4.

After hearing?BIFR found that the accumulated losses of

BGML as on 31-3-1992 was Rs 94.09 crores as against the net worth

of R07.O3 crores (made up of paid up capital of Rs 46.64 crores

/Sv

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£ANG

\*

16

and free reserve of Rs 0.39 crores) and that the company had

inclined cash losses of Rs.23.31 crores during the year ended 31-31991, Rs.43 crores for the year ended 31-3-1992 and Rs.34 crores for

the year ended 31-3-1993. The factual position (that is, the
accumulated losses exceeding the net worth) was not disputed by the
representatives of the secured creditors (State Bank of Mysore) or

the representatives of the Ministry of Mines or the Employees

unions.

Therefore, by order dated 27-7-1993, BIFR decided that it

was not possible for the company to make its net worth positive

within a reasonable time without the Board taking measures under

the SIC Act and therefore appointed ICICI as the ‘Operating
Agency under Section 17(3) of the SIC Act to examine the viability
and prepare a scheme for revival/rehabilitation of BGML.
5.

The Operating Agency submitted a- Reports regarding the
r'

factual position and status of BGML and suggestions for
rehabilitation. After considering the matter, BIFR made an order

dated 18-3-1994 granted six weeks time to all concerned to submit

their proposals to the Operating Agency. It also directed the
ating Agency to hold a meeting of all concerned and submit a

) z-..

17

revised

rehabilitation

package.

Several

proposals,

schemes,

rehabilitation packages and suggestions put forth by the Operating

Agency, Government Employees of BGML and outside bidders were
examined by BIFR during a scries of sittings between 1994 and

2000.

Ultimately by order dated 21-2-2000, BIFR rejected the

submissions made by the employees for revival of BGML as it found
that the efforts of the C ovcmment to privatise the company had

failed and the employees had no resources to bring promoters
contribution of the magnitude required and recorded a prima facie

conclusion that BGML should be wound up in public interest and
directed issue of show cause notices as to why a recommendation for
winding up should not be issued to all concerned.

6.

.After hearing the objections, the BIFR passed a final order

dated

12-6-2000,

expressing the

following

opinion

under

Section.20(l)ofSIC Act:

Ka A

‘'The Bench, therefore, concludes that the present
promoters after careful examination of various alternatives
have expressed their inability to revive the company. As
there is also no other rehabilitation proposal with means of
f finance fully tied up for consideration of the Board despite
ftample opportunities having been given to all concerned, the
'Bench confirms its prima facie opinion that the sick

ike
/

18

industrial company M/s Bharat Gold Mines Ltd. is not
likely to make its net worth exceed is accumulated losses
within a reasonable time while meeting all financial
obligations, and that the company as a result thereof is not
likely to become viable in future and that it is just, equitable
and in public interest that it is wound up u/s 20(1) of the
Act. The opinion may be forwarded to the concerned High
court along with copies of all earlier orders/proceedings,
for necessary action according to law. ”

The said opinion was recorded by BIFR having regard to the
following factors: (aj Though the Government of Karnataka
expressed its keenness to revive the companyJt refused to contribute

anyfindfor revival; (b) The Ministry ofMines, Government ofIndia

which was the promoter of the company, categorically stated that it
would not provide any additional funds at all for the revival of the

company and it had no objection for the company being wound up;
(c) In spite ofgrant of adequate opportunities from J992 the various
labour unions had not come forward with any viable revival scheme
for the company; (d) Any revival plan for the company would require
a minimum infiision of Rs 100 crore [which may^ go up to even

Rs. 150 to 200 crores] and neither the labour unions nor any co­
operative that may be formed by the employees or group of
professional consultants could bring in that amount of money

)Z

19

required to revive the company; and (e) The proposal/scheme put

forth by the KGMNL had been considered and rejected by the High

Power Committee appointed by the Ministry ofMines.
7.

Feeling aggrieved, BGML United Employees Association,

BGML Employees Union and KGMNL filed appeals before the

AAIFR, in Ap.No.277/2000, 291/2000 and 290/2000 respectively.
When the said appeals came up for consideration on 29-9-2000 noted
that the accumulated loss of the company was Rs.409 crores as

against share capital of Rs. 51 crores and reserves/surplus of about

Rs.2 crores as on 31-3-1999. AAIFR asked the labour unions
whether the workers/employees would be willing to invest their
accumulated funds in CPF accounts and take over the management

of BGML by themselves or in association with KGMNL. It also
wanted to know whether KGMNL had any proposal to rehabilitate
BGML, as it found that the proposal of KGMNL was only to buy the

assets of BGML for a consideration of Rs 31.32 crores, by offering
50% as down payment and seeking permission to pay the remaining
way of 9%'o redeemable non-convertible preferential shares.
A
AAIFi^kantcd
time to the Appellants (Two Employees Union and

pt
J

l

//

/

20

KGMNL) to state whether the employees were willing to invest their

provident fund accumulations either by themselves or in conjunction
with KGMNL in order to take over (lie management of BGML; and

if so disclose the maximum amount that they can commit for
investments for the purpose of rehabilitation of BGML without

expecting any investment from Government of India and the State
Government.

8.

When the matter came up on 15*11*2000^ the-Unions stated

that the workers were not in a position to contribute any fimd for

rehabilitation of BGML, but suggested that BGML should dispose of
the 32000 acres of land held by it| so as to generate adequate hinds

for its rehabilitation. After considering the matter, AAIFR by order

dated 15-11-2000 dismissed the appeals. AAIFR gave the following
reasons for such dismissal: a)

Government of India had clearly

indicated that it would not give any additional fund for investment in
BGML except for the VRS for the workers; b) The State Government

y’as unwilling to make any investment for rehabilitation ofBGML: c)
As against the net worth ofRs.53.29 crores (that is share capital of

*r
(

■ Rs 51.06 crores and reserves and surplus of Rs 2.23 crores) the

21

accumulated losses were Rs 409.03 crores as on 31-3-1999: d) As
BGML continued to make huge losses every year and was heavily

indebted, there was no possibility of rehabilitating it: e) The
proposal by KGMNL to purchase the assets for a small

consideration of Rs 31.32 crores having been rejected by the

government of India, the said proposal cannot form basis for

preparing any workable rehabilitation scheme; f The employees

were neither willing to not in a position to make any investment; g)
The employees' unions had not come up with any workable

rehabilitation proposal and their suggestions ww depend[upon
substantial financial investment by government of India, which had

already indicated that it was not willing to make any such financial

investment: h) It was not possible for BGML to raise sufficient funds
by sale of available vacant land for revival and the suggestion of
Employees Union that BGML can generate sufficient funds for
rehabilitation by selling 12000 acres of land held by it was not

tenable.

9>

The said order of AAIFR affirming the order of BIFR, was

^<?challen^cil in WP.No.157 to 159.. 1343 and 7987/2001.

In the

22

meanwhile BGML made an application dated 29-11-2000 seeking
prior

permission

for

closing

down

its

undertaking

under

Section.25(0) of Industrial Disputes Act. 1947. Having consider the
said request, the Government of India by letter dated 29-1-2001,

granted permission for closure of BGML with effect from 1-3-2001.
1116 said Order dated 29-1-2001 was challenged in WP.4503-4507

and 5118/2001. A learned Single Judge of this court by a common
order dated 16-3-2001 allowed the said petitions and quashed the

order dated 12-6-2000 passed by BIFR and the order dated 15-112000 passed by AAIFR and the order dated 29-1-2001 passed by the

Government of India under Section 25(0) of the Industrial Disputes
Act, permitting closure of BGML.

Tire beamed Single Judge

directed BIFR to reconsider the claim made by the Employees

unions and KGMNL and find ways and means to revive BGML.
,

Feeling aggrieved, the Union of Lidia and BGML have filed these

appeals.

10.

On the contentions raised, the following questions arise for

consideration in these appeals:


23

i)

H)

Hi)

Whether the writ petitions were not
maintainable in view of availability of
alternative remedies.
Whether the Learned single Judge was justified
in quashing the orders ofBIFR and AAIFR and
directing BIFR to reconsider the matter.
Whether there is any infirmity in the order dated
25-1-2001 of Central Government granting
permission for closure of BGML under Section
25(o) ofIndustrial Disputes Act?

Re: Point No i)
11.

Appellants contend that writ petitions ought to have been

dismissed on the ground of non-availing of alternative remedy. It is
submitted that writ proceedings is not intended to be an alternative
remedy for relief which may be obtained by regular modes

prescribed by the Statute. It is stated that the first batch of writ
petitions were filed challenging the validity of the orders of BIFR

and AAIFR and the second batch of writ petitions were filed

challenging the permission granted by the Central Government under
Section 25(o) of the I D Act.

11.1) It is submitted that the opinion recorded by BIFR and affirmed
by AAIFR (that BGML is not likely to make its net woitli exceed its

^^=^=^§ccumulated loss within a reasonable time, while meeting all its
------------------ ..

hff
;A \

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> i

obligations and that the said company, as a result thereof, is

/

24

not likely to become viable in future) is not a final decision but

merely expression of an opinion under Section 20(1) of the SIC Act;

and that on the basis of the said opinion, proceedings for winding up
BGML has been registered as Company Petition No 180 of 2000 on
II.I I I I »u

...

___ ir~r"

,

Iliwnnn III 1— I

the file of this Court and the matter is pending. It is con/e^d that
1

<

■ ■ ’"•'n

it is for the company court to finally consider whether BGML

should be wound up or not under Section 20(2) of the SIC Act; and
that therefore, it was open to the writ petitioners to urge all their
...................... _

e .

-v-

-

contentions by way of objections and persuade the company court

not to order winding up of the company. It is also submitted that
when the validity of the orders passed by the BIFR and AAIFR is

being examined by the company court under Section 20(2) of the
SIC Act, requesting this Court under its writ

to consider the

validity of the very orders of the BIFR and AAIFR would amount to
i

pursuing two parallel remedies, which is impermissible in law.

11.2)

In regard to second batch of writ petitions (challenging the

order dated 29-1-2001

of the Central Government, granting

,’pwmission to BGML to close its industrial undertaking under

5f

Section 25-0(2) of the I D Act) it is submitted that an efficacious
I*

(

//
A

?

25

alternative remedy is provided under sub-section (5) of Section 25-0

of I D Act, which provides that the appropriate government may,

ft — mu

............ .........

I

either on its own motion or on the application made by the employer
or any workman, review its order granting or refusing to grant

permission under sub-section (2) or refer the matter to a Tribunal for
adjudication.t*. It is therefore submitted that if the Unions or the

employees are aggrieved by the permission granted by the Central

Government under Section 25-0(2) of the I D Act, they ought to
have filed an application under sub-section (5) to the Central

Government for review and if such an application was made, the
Central Government would have made necessary enquiry into all

facts, particularly into the genuineness and adequacy of the reasons
stated by the employer and an opportunity of hearing would have

also given to the employer, workmen and other interested parties.
Reliance is placed on the decision of the Supreme Court in ORISSA
TEXTILE & STEEL LTD vs UNION OF INDIA [(2002) 2 SCC

578], wherein the Supreme Court held thus:
(iA proper reading of sub-section(5) of the amended
T^<Section.25-0 shows that, in the context in which it is

the word ‘'may" necessarily means ^shair.
)*

I
67

.f

26

Thus the appropriate government shall” review the

order if an application in that behalf is made by the
employer or the workmen. Similarly, if so required by

the employer or the workman, it shall refer the matter

to a tribunal for adjudication. As submitted by the
learned Attorney-General, in a review the appropriate
government would have to make an enquiry into all

necessary facts, particularly into the genuineness and
adequacy of the reasons stated by the employer. An
opportunity of being heard would have to be given to

the employer. workmen and all interested persons. The

order on review would have to be in writing giving
reasons.

Thus, in exercising powers of review, the

appropriate government would be performing quasi­
judicial functions. ”
12.

The following Principles relating to entertaining

of writ

petitions, where alternative remedy exists, are now well settled:

i)

Where an efficacious and adequate alternative remedy

is provided under a statute in regard to an order made
under that statute, a person aggrieved by the said order

will have to pursue such remedy provided under the

statute and cannot avail the extra-ordinary remedy

27.

under Article 226 of the Constitution, unless there are

good and acceptable reasons for by-passing the

statutory remedy.

It is also well settled that existence

of an alternative remedy will not however come in the

way of exercise of jurisdiction of power under Article
226 (a) where the validity of a statutory provisions or

rule is challenged;

(b)

where infringement of

iundamental rights or violation of principles of natural
justice is alleged; (c) where the alternative remedy

provided under the statue is neither effective nor

adequate or whether the alternative forum is not
competent to grant relief sought in the writ petition; (d)
where the action is without authority of law; and (e)

where interference is necessary in public interest to
prevent public injury. The above exceptions are not
exhaustive.

(ii)

It is also well settled that the principle that a person

invoking the writ jurisdiction should have exhausted
the remedies under the Statute before filing a writ

aR

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it

>

1

)^I

7

/

2K-

petition under Article 226 of the Constitution is only a

policy of convenience and judicial discretion^ and not
statutorjr. In fact existence of an alternative remedy is
not an absolute bar to exercise of power under Article
226 and die High Court has discretion to grant relief in

a writ proceedings in exceptional circumstances.

(iii)

In spite of the existence of an alternative remedy, if a
learned Single Judge entertained the writ petitions and
granted relief, normally in writ appeal, such an order

will not be interfered, merely on the ground that the

writ petitioner had failed to avail the statutory
alternative remedy before approaching the writ court.
Keeping the aforesaid principles in view, we will now consider the

appellants’ contention relating to maintainability of the writ
petitions.

13.

In regard to the orders of BIFR/AAIFR, the statute (SIC Act)

does not provide for an appeal or revision or review.
therefore, a writ petition would be maintainable.
¥

,1^

■z/ v r
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Necessarily

Sub-section (2) of

<^ection.20 of the SIC Act is not an alternative remedy to challenge
A

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/

29

an order passed cither by BIFR of AAIFR under Section 20(1) of
SIC Act. The order of BIFR/AAIFR expressing opinion that sick

industr ial company will have to be wound up, forms the basis for tire

action by tire High Court to wind up the company under Section
20(2) of the SIC Act. When winding up proceedings are initiated on
receipt of tire opinion of BIFR/AAIFR, the Company Court does not
sit in appeal over the orders of the BIFR/AAIFR.

On the other

hand, keeping the opinion of the BIFR/AAIFR as the basis, the

Company Court, exercising the power under Section 20(2) of the SIC
Act, examines the question whether the company should in fact be

wound up as recommended by the BIFR/AAIFR. It is true that the

High Court on hearing the parties, can, in spite of the opinion of the
BIFR/'AAIFR. hold that the company need not be wound up; and for

passing such an order, the High Court is not precluded from

examining the correctness of the opinion of the BIFR/AAIFR. But
tire Company Court while deciding the matter under Section.20(2) of
SIC Act does not sit in appeal over the opinion rendered by the
BIFR/A.\JFI< but examine the matter with reference to the further

-jTevents or other circumstances to find out whether the company

Il J

) Il
'^1

■/

30

should in fact wind up or not.
RAMAR4JU

w

The, Supreme Court in V R

UNION OF INDIA [89 (1997) COMPANY

CASES 609], while affirmation of the decision of the Madras High

Court in J M MALHOTRA vy UNION OF INDIA (1997(89]
COMPANY CASES 600) in regard to validity of Section.20 of SIC
Act, held as follows:

“It is obvious that sub-section (2) has to be construed
to mean that the High Court in deciding the question if
•winding up ofthe company has to take into account the

opinion of the Board forwarded to it under subsection(l) and is not to abdicate its own function of

determining the question of winding up. So read, sub­

section (2) does not sufferfrom any infirmity'. "
I Therefore, the High Court docs not consider whether the order

; passed by the BIFR/AAIFR is correct or not, but considers whether,
on the opinion of BIFR/AAIFR. an order of windin;g up of the


. company should be passed or not. Further, what is provided in
Section 20(2) of SIC Act is not a remedy against the order under

Section.20(1) for the person aggrieved, but is a step statutorily
piovided to take the matter to a logical conclusion in pursuance of
*■



)Z

31

the order passed by the BIFR/AAIFR concluding that the company
requires to be wound up.

14. There is yet another factor which is required to be noticed. As
stated earlier, a writ petition will be maintainable even where a

statutory remedy by way of appeal or revision or review is available,
if the forum which can entertain such appeal or revision or review

under the statute is not competent to grant the relief sought in the
writ petition. In this case, the^petitioners not only seek quashing of
the orders of the BIFR/AAIFR but also seek direction to the Central

Government to revive BGML. Such a prayer obviously could not be
made before the Company court in a proceedings under Section
20(2) of the SIC Act.

15.

In regard to the second batch of writ petitions, relating to

validity of the order under Section.25-O(2) of ID Act, it is true that
an alternative efficacious remedy has been provided under sub­

section^) of Section.25-0 of ID Act. But ORISSA TEXTILE relied
on by the Appellants makes it clear that the existence of the

provision for review under Section.25-O(2) would be in addition to

I-'1

J'ti- (



..

1.

32

the relief of judicial review under Article, 226 or 32 of the

Constitution.

16.

The contention based on non-availment of alternative remedy

in regard to both batches is liable to be rejected on another ground.

In HIRDAYNARAINvs ITO (AIR 1971 SC.33) the Supreme Court

has observed that where the writ petition is entertained and heard on

merits, it will not be proper for the High Court to throw it out merely
on the ground that the petitioner has not availed the alternative

remedy. The learned Single Judge liavlng entertained the writ

petitions and disposed of the matters on merits, the challenge to the

order of the Learned Single Judge on the ground of non-availment
of an alternative remedy, is liable to be rejected. /vuA
IM,

Re: Point (ii):
17.

The second contention raised by the appellants is that the

learned Single Judge ought not to have interfered with the orders
passed by the BIFR/AAIFR.

The Ixiamed Single Judge has

accepted the following contentions of the employees union and
allowed the writ petitions:

)Z

£

33

a) BGML being a government company, it should not be compared

to a private employer. Therefore BIFR/AIFR should not have
considered the matter only with reference to the financial

implications but should have also considered the social impact
and human problems.

It is submitted that the entire town of

KGF' with a population of about Two Lakh people is dependant

on the functioning ofBGML. If BGML is closed apart from all

the employees losing their jobs, what was once a vibtant town,
will die.

b) When BGML was incorporated as a public sector company in the

year 1972, it was not intended to be a company to make profit.

The mining operations were being carried on at lossj even in the
year 1972. when the company was incorporated. Loss yvas never

considered a ground to stop the mining.

Between 1962 and

1992, the Central Government did not worry about the losses and
as a general policy continued to run public sector undertakings
in spite of the losses, as a social obligation and national pride.
In many areas, government companies continue to run or operate

~ under loss, either on account ofgovernmental policy or in public

is/

J*

7

/

34

interest or to give benefit to the public or to provide employment.

The government knew that BGML was not commercially viable

unit and BGML never made profit.

Therefore in spite of losses,

public interest requires that BGML should be run in spite of

losses.
c) The assumption that there should he a reasonable return on the

investment or that the net worth should be more than the losses is
inapplicable to the government undertakings, particularly those
which were not treated as commercial undertakings. Therefore,

the government should have providedfunds for rehabilitation and
revival instead of trying to close the undertaking and windup the

company;

d) Having regard to the memorandum of association, BGML had to

sell all is gold only to Government ofIndia or the parties named
by the Government of India, at the rale fixed by Crove/nment of

India.' Between 1972 to 1988, the Government was not paying a
free market price of gold supplied by BGML. Even though the
free market price ofgold in India was many times more than the

international prices, the government was purchasing gold from

35

BGML only at the international price i.e. London metal exchange
price. The free market price was paid only from the year 1988-

89. When the government for decades prevented BGML from
making any profit or building any reserves, by paying a price for
less than the Indian Market price, it cannot suddenly decide to

close the undertaking on the ground that it was not showing

profit. If the Central Government pays the difference between the
Indian Free Market Price and the fixed International price for

the gold supplied by BGML between 1972 to 1988. the
accumulated losses will be wiped out and the net worth will come
to the positive side.
e) BIFR/AAIFR failed to consider various proposals for reviving/

rehabilitation of BGML with reference to the reports of expert
bodies that is KSR ChariA. Parliamentary Commission Report and

ICICI (Operating Agency) Report. It did not also examine the

proposals ofthe employees for revival of the company.

p<'
>!

36

18. Learned Single Judge has given the-following reasons for setting

aside the orders of BIFR/AAIFR and directing that the matter should
be reconsidered to find ways and means of reviving of BGML:
“The authority has not taken into consideration the
public interest involved, the loss of wealth to the

county by forcefid closure of the company.... it is not

known what made the Government of India to refuse

offering its helping hand to revive a century old gold

mine. Various obstacles appear to have been placed in
the matter of revival. The B1FR was so optimistic at

some stage after considering various proposals for
rexuval, but suddenly turned down and accepted the

submission made by the Central Government only on
the ground that it will not help BGML to revive the
Company. ”

“It is true that gold can be purchased at a cheaper rate
from the foreign countries.

But at what cost? The

Government would not close all the agricultural farms

on the ground that they are economically not viable.
The Government has to spend huge foreign rescues

for impost ofgold which is not an essential commodity.
There is no purpose in importing gold from the foreign

countries when the country itself can produce it. There
is no dearth of technical knowledge in this field. In


.

.

/

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*

(
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37

fact,

the Parliamentary 'Committee

and others

suggested to take the technical opinion ofAfrican and

Australian countries who are experts in the field. The

Government ofIndia has failed to do so.
(iI have reached the conclusion that BIFR and AAIFR

have failed to advert themselves to the various
proposals made by the concerned parties to revive the
sick company.

The impugned order passed by the

BIFR clearly shows that abruptly it withdrew the

suggestions made previously and proceeded to pass an
order holding that it is not viable to revive the sick
industry. This is so done only on the ground that the

Government of India refiised to pump in required
funds and virtually took unilateral decision to close
it. ”

19.

We will now consider whether (i) the factual situation of

BGML (ii) Reports of Sri K S R Chari, Parliamentary Commission

and ICICI (iii) Financial position of BGML, warrant the conclusion

reached by the learned Single Judge. Equally important is the
question whether the policy decision of Central Goveniment not to
.....

.

.

^HrnVest^fuiflicr
iiAer funds but to close down the unit is arbitrary or

<SS'

"R

38

unreasonable as to warrant interference -with the order of
BIFR/AAIFR which based its opinion, on such policy decision of the
Central Government.

Position of SGML

20.

Systematic mining in KGF was started in 1880 by M/s. John

Taylor & Co. Initially there were four mines at KGF - Oorgaum
Mine^Champion Reef, Mysore Mine and Nandydurg Mine. Tire first

(Oorgaum mine) was closed in 1953 as it was found to be

unremunerative. The remaining three continued in operation. They

were taken over by the State Government in 1956. The Management

and operations were transferred to Central Government in 1962.

BGML, a wholly owned Government Company^in 1972. The Gold
production gradually declined from 5084 Kgs in 1957-58 to 2345

Kgs in 1967-68 to 2000 Kgs in 1972-73/0 1106 Kgs in 1984-85/0
764 Kgs in 1990-91/O 671 Kgs in 1991-92^to 433 Kgs in 19992000.

21.

Initially the yield was 40 Grams per ton of ore.

1 he yield

^came down to 2.7 grams per ton of ore which rose to about 4 to 5
4
%

39

Grams per ton between 1990 to 2000. Technical opinion is that
milling becomes unworkable if the yield becomes less than 10
Grams per ton.

22. As mines grew older and deeper?mining operations became more

and more problematical and risky with enormous increases in strata

temperature humidity, greater proneness to rock bursts, pjore de­
watering is to be done.

This means more safety regulation^

restrictions in working and frequent stoppages.

The cost of

production vyent up. Risks became higher. Yield became poorer.

To get 433 Kgs of Gold in 1999-2000, more than 12 Lakh tons of
Up

ore has to brought tek from great depths. The result is when the
open market price is about 4500 per 10 Grain; of Gold, it costs

Rs.20,000/- for BGML to produce 10 Grams of gold. In short, for

every gram of gold produced by BGML, it incurs a loss of Rs. 1500/-

If the production is increased the loss increases, as the cost of
production does not decrease with higher out put.

23.

Mines do not have perennial yield. All mines have specified

A |fj^yie of a Mine is limited by the reserves it has.

The Champion
r

P'

)

1! X

40

Reef, and Nandydurg Mines have virtually* reached their point of

exhaustion. Like life and death, closure of mine is inevitable. The
life of a mine and the company owning it cannot be extended for

sentimental or social reasons - certainty not at enormous avoidable
cost and more and more risk to mines.

Re: Reports
24.

As BGML was incurring huge losses on account of depletion

of high grade ore and increase in cost of input of production, excess

labour etc., the government of India constituted a one-man
committee headed by a mining expert [Sri K S R Chari, former
Secretary to Government, Department of Mines, Government of
India] to study the operation of the company and to submit a report

in regard to the following matters:

li)

to review the nature, scope and cost of
operations and to quantify specified identified
items of cost reduction so that the contribution
of loss making areas can be minimised

n)

to examine whether with this rationalisation and
elimination/minimisation of specific loss the
BGML would be working on commercial
principles;

i

41

Hi)

inter alia to examine whether its conversion into
a departmental undertaking would improve the
operations and make them viable;

iv)

in case the operations of the SGML cannot be
viable to recommend whether the operations
could be would up, whether KGF Mines could
be closed down;

^)

there has to be a closure to indicate the time
table thereafter:

vi)

scope of ersification of operations and
alternative
utilisation
of
Company's
infrastructure in the intervening period so as to
minimise the loss. ”

25. KSR Chari submitted a report making several recommendations

to improve the economic viabilities of the company.

He pointed out

that even if the recommendations were effectively implemented, a

permanent lease of life cannot be given to the century old enterprise
|£t

and felt that at the best^mines could be worked about ten years only.
That report pointed out depletion of natural ores in the area and the

cost of production of gold with age- old machineries would seriously
hamper the efforts of putting the company on profitable lines. The

following extracts from Chari’s Report is relevant:

“...in the 60s that several gold mines the world over
were closed down. In the KGF itself, the development
>70'

<0

'V V

)4

w

42

to the dip was abandoned in the Champion mine,
where the workings had already reached a depth of

3211 metres below surface, next only to the deepest
point below surface ever reached by man.n

It costs Rs.420 lakhs a year to operate the mine and
at the present level 140 kg of gold obtained from the
ore containing an average 2.7 gms/ton, it involves an
annual loss of Rs.120 lakhs, assuming market prices

for gold. ”

"About 97% of the gold produced by the Kolar Gold

Mines since their inception came from the rich

champion lodes. With the gradual depletion of easily
mineable reseives, development work has extended to

depths of 3220 metres. Mine workings at such ultra
depths are frequently subject to severe rock bursts.
The mine has 1.1 million tons of reserves, with 6.5

gm/ton extractable gold content, but 85%

of the

reserves are locked up in areas damaged by earlier
rock bursts and flooding. The gold values have come
down sharply and the entire operation is becoming

increasingly difficult. In 1974-75. the Champion Reef
Mine produced 495 kg ofgold by milling 73094 tons of

ore. In 1984-85, the gold output was only 384 kg but it

PQ J
I

43

needed milling a much "higher, tonnage of ore -81396

tons. ”

At this stage, it is important to fully realise that the
workingnijnes in the Kolar Gold Field are on their last

legs and their closure, one after the other, is only a
matter of time. . The reserves are getting depleted, the
gold values are deteriorating, the productivity is

declining and the overheads are mounting.

The gap

between the market price and the cost ofproduction is
steadily widening.

Annual losses are setting new

records. What is even more alarming is that the future

will worsen further if the present trends are allowed to
continue. The questions that arise at this stage are - if

the BGML ’s cost of gold production is as much as

Rs. 70/gm more than to-day’s

open market price,

which difference may go on increasing with increasing
cost of wages, lower production, productivity etc., does

the countiy at all need the one ton ofgold produced by
BGML involving a subsidy of Rs. 7 crores, year after
year?

“It is worth reiterating, however, that even the faithful

implementation of all the recommendations contained
in the Report cannot give this century old enterprise a
permanent lease oflife. As in every case ofa depleting

*

8<
.

■'O\
V.

£/>
/<y/'

/

44
-I

mineral resource, the life of the niine is limited by the

reserves it has.

Although the Kolar mines have

witnessed, over this long period of history, closure of
some units and opening new ones, this is perhaps the
first time that the closure of the Mysore Mine cannot

be compensated by any other prospect being opened
within the area. The Champion and the Nundydrug

mines will reach their points of exhaustion in a few

years from now; and the story will then repeat itself ”
The government did not accept the proposal of KSR Chari

committee which requires pumping in huge sums of money, as the
natural reserve of economic ore was getting exhausted and further

investments would not make up it economically viable or sound.

However, such of the recommendations which could be implemented
i.e. sale of gold in open market and diversification of activities were
implemented, but BGML continued to suffer losses, ultimately.
making its net worth negative.

26.

In the year 1993, Parliamentary' Committee identified BGML

as one of the subjects for indepth study and after such study, it
submitted a report dated 30-3-1994 expressing a view that Central
Government and BGML should take steps to revive BGML. In that

yz. •

/

45

context, they gave several suggestions.

In brief, the suggestions

were:

(a) ITie reference made to BIFR should be revoked
and matter should be taken out of the purview of
BIFR.

(b) Requisite funds should be made available by the

Central Government to BGML to establish a plant

for recycling the huge stock of tailings and extract
gold therefrom.

(c) Government should make available immediately
Rs.41 crores as soft loan or stand as a guarantor to

enable the company to get loans from Banks.
(d) BGML should try to raise requisite funds for

revival by selling its surplus land.

(e)

Security network to be streamlined to prevent

pilferage of gold.
(f)

Survey of gold deposits in the area should be
conducted in a more scientific way if necessary;
by using technology from other countries.

(g) Diversification activities by way of manufacturing
mining

equipment

and

providing

mining

consultancy services should be encouraged.

—recommendation was that the Central Government should

proyide^ funds for modernisation.
■:

> ft

The reference made to BIFR

46

obviously could not be taken back as'lt^vvas a statutory reference

under Section 15 of SIC Act. There were nothing new in the report
as the recommendations were similar to those given in the KSR

Chari report. But Government of India took a policy decision not to
provide further amounts and that BGML should be closed. That is a
matter of policy. Recommendations of the Parliamentary Committee

cannot override the ultimate policy decision taken by the

Government.

27.

The ICICI also submitted several reports in its capacity as

Operating Agency. Those reports have been considered in detail in

the several orders of BIFR and it was found that none of the
suggestions were feasible or workable. Ultimately, all suggestions

boiled down to^Govemmcnt of India to waive all the interest.
converting loans into equity, and injecting huge funds for revival.

Government of India categorically stated before the BIFR that it was
not willing to do so. Therefore, reports of ICICI are also of no

assistance.

! r-

V - Vi

)

i

47

Re: Financial Position:
28. The undisputed financial position as disclosed from the annual
reports are as follows:

particulars
Net Worth (paid
up capital *
reserves)______
Amount due to
Govt.? of India

As on
31-12-1992
48.79
96.26

Amount in Crores
As on
As on
31-3-1999
31-3-1993
53.29
48.78

As on
31-3-2000
51.67

*184.23
**162.38

*209.23
**194.37

122.96
i

(Note 1: * Principal Amount - ** Interest
Note 2: Other liabilities are not shown as they are comparatively
minor amounts) •

~
29. The work force was 8867 in 1992-93 and it came down to 4343

in 1999-2C00. /Vs on 31-3-2001. amounts due to the Government
itself was Rs.450 crores which was made up of Government loan of

Rs.219.22 crores and interest of Rs.230.99 crores, llie request of

the employees is that the interest is to be waived, the loan amount
should be converted into equity and further funds of Rs. 100 to 150

crores pumped in for immediate revival with further advances to be
made from time to time by the Central Government. They also want

several concessions from the State Government in regatd to taxes,
/

A

?*)

48

electricity charges etc.,.

Neither tlie State nor the Central

....

Government are willing to provide wrife such kind of loans or
A

facilities.

30. Several suggestions made by the employees are not relevant at

feasible. For example, one of the suggestion made is that BGML

should sell the 13,000 acres of land owned by it and generate
sufficient funds for revival. To a query from the Court, it was stated

by counsel that value of the land in that area will not exceed
Rs.30,000/- per acre. It is not disputed that out of 13,000 acres,
nearly 4000 acres are occupied by the KGF township, 2000 acres are

occupied by tailing stocks, 3000 acres are forest. What is therefore

available for sale is hardly 3000 acres, fven if the lands are to be

sold at the rate of Rs.30,000/- per acre, the lands would have fetch

hardly Rs.9 crores which would not be sufficient to meet any
purpose.

31.

Another suggestion is that huge stocks of tailings can be re­

treated to retrieve gold therefrom. But this require setting up of a
/

J

49

new plant, cost of which was not Tess than Rs.30 to 40 crores which

no one is willing to bear.

32. The employees also soiight that assets of the company be made
over to the employees by writing off the entire

and interest and

financial assistance be extendedL them to run the factory.

The

9^

Employees are not willing to contribute their Provident Fund or

contribute any othc” amount. In other words, they wanted the entire
finance from the Government after writing off the entire dues. This

has not found to be a practical and Government did not agree to it.

33. KGMNL made several proposals. Initially it wanted to buy the
entire assets of the company for about Rs. 30 crores.

rejected.

That was

Subsequently, it entered into a Memorandum of

Understanding with the Employees' Association in the year 2000

under which they proposed to bring in necessary capital and
technology to run BGML provided the Unions agreed to rationalise

the work force by persuading maximum number of employees to
avail VRS and persuaded the Government to write off the entire
•/
.

-------

I

flu (

5

50

accumulated debt so that they can slarb with clean slate. In other

words, KGMNL wanted the Government to write off Rs.500 crores

(or more), spend another Rs. 100 crores for VRS and thereafter give
the entire assets with a work force of 1000 to 2000 employees
without any liabilities. The Government took a policy decision not

to accept the said proposal.

34. All suggestions putforth either tv the employees or by the
Parliamentary Committee or by the prospective investors require

Government writing ofF nearly Rs.500 crores (or more), spending
further huge amount for VRS and then give away the entire assets

without any benefit. But, even if Government takes all these steps.
there is no guarantee that the Company will stand revived. As stated
o>

above, as the deposits arc depleting, and cost^ extraction is
•>—

increasing, point of closure is always imminent. Therefore, if the
Government took a policy decision not to invest further amounts for

revival. such a decision is neither arbitrary or unreasonable.

t>

I

A

rz.h

51

35. It is well settled that Courts wilbnot interfere in policy matters

except where the policy is established to be arbitrary, unreasonable

or discriminatory. By no stretch of imagination, on the facts and
circumstances, decision of the Government in not reviving the

BGML can be said to be arbitrary or unreasonable.

Re: Orders ofBIFR/AAIFR
36.

The Unions vehemently argued that the Order dated 12-6-

2000 of BIFR and the order dated 15-11-2000 of AAIFR did not
consider all contentions and relevant aspects. But if the final Order
dated 12-6-2000 of BIFR is read with the series of earlier orders
made between 1992 to 2000, we find that all aspects has been

considered.

36.1) By order dated 27-7-1993 BIFR appointed ICICI as operating

agency to examine the viability and prepare a scheme for
revival/rehabilitatioii of BGML and specified the following measures

and guide lines for preparing the scheme.

52

tl Measures:

1) Restructuring the liabilities ofSGML in view
of the total erosion of the net worth and
desirability of writing off whole or part of
the unsecured loans given to SGML bv the
GOI.

2) Consider possibility of mobilising interest
free finds by divesting a part of the equity to
the public.
2(a) Take over management by private
entrepreneurs willing and its revival by infiision
ofrequired interest free finds.

3) Consider the feasibility of disposal of
surplus land, other assets and availability’ of
resources therefrom for the revival of the
company.
4) Consider rationalisation through retirement
under VRS or other, surplus labour force,
assuming required funds would be available
from NRF and also examine the feasibility of
allotting the dwelling units to retiring
workers at a token depreciated value.

5) Provide for strengthening of management by
broadbasing
Board
of
Directors,
participation of workers in the management,
constitution of management committee
comprising nominees of bank, government,
concurrent audit, etc.,.

(

Ca

53

Guidelines:
a) To clearly establish whether BCtML is
technically, economically and commercially
viable. For this purpose, the question of
required
balancing
• equipments,
modernisation, setting up of Carbon-in-pulp
plantfor extraction ofgoldfrom dumps, cost
reduction measures, etc., should be
examined.

b) The scheme should be for a period of 7-10
years with an acceptable DSCR and
projections should be based on realistic
assumptions appropriately supported by
required sensitivity analysis.
c) The promoters contribution from GOI at
minimum 30% of the cost of the scheme and
monitory value of reliefs should be assumed
and no interest on unsecured loans from
GOI should be provided.

d) The reliefs and concessions from Bank
should be cis per the latest RBI guidelines.
The reliefs from the State Government
would be as per the standard paclcage of
reliefs and concessions for sick units:
however- the feasibility of providing
electricity at concessional tariff or sale of
Siva Sundaram Power Station to BGML at
depreciated hook value should be examined.
The amount ofsacrifices should be indicated
from the bank and Government separately.
A;

j

e) The company should enter into a labour
agreement with the workmen unions for next
three to five years for the required

y

/

54

rationalisation of
labour , future
productivity etc, to ensure harmonious
industrial relations during rehabilitation
period.

fl

The cut off date for the scheme should be
taken as 31-3-1993.

It directed the Government of India, BGML workers’ Unions and the

creditors to give proposals for revival.

36.2)

ICICI submitted a report suggesting utilization of carbob in

pulp leaching of tailing dumps to yield at least 650 kgs per year.
But trying to extract gold from tailings required adaptation of new
technologies and infusion of large funds.

Therefore, by order dated

18-3-1994, BIFR again directed the Central Government, the State
Government and the workers’ unions to submit their views and

suggested a joint meeting.

36.3)

By order dated 6-10-1994, BIFR directed the operating

agency to submit its final repoil.

In the meanwhile, government

examined the feasibility of revival of the company based on tire

initial report of the operating agency in the light of the new Mineral

Pott

'or (

of 1993 and decided to explore the possibilities of

V

Y)/-

55

rehabilitation with the support of a joint venture partner with strong

managerial, technical and financial resources.

36.4) After considering the report of the operating agency by order

dated 27-4-1995, the BIFR issued several directions including
suggestion to explore the possibilities of a joint venture. By order

dated 13-9-1995, BIFR considered the Joint Venture proposal and
directed the operating agency to formulate and recast the
rehabilitating scheme, taking into account the terms and conditions

of memorandum of understanding to be entered with M/s Narmandy

Anglo Asian Limited [NAAL] who had come forward for a joint
But, NAAL after making technical assessment of the

venture.

mining prospects, withdrew from the joint venture on the ground that
they had overestimated the reserve potential.

36.5)

By order dated 13-3-1996, BIFR considered the Report

submitted by the Operating Agency on 4-3-1996 and gave detailed
directions. When NAAL withdrew from the joint venture, BGML
a rev*se^ rehabilitation scheme and BIFR by order dated

directed the Central Government to submit a report about

L/’

pV

X:
NG

VA

)J

/

56

the funding and implementation of rehabilitation scheme.

But

Government of India categorically slated that it was not feasible to

invest any further amount in BGML. After considering the various

reports and the views of the state and the central governments and

the employees, the B1FR, by order dated 14-11-1996, expressed a
tentative view to wind up the company and ordered issue of show

cause notices.

35.6)

However, AAIFR set aside the order of BIFR dated 14-11-

1996, on the ground that the said order was passed before receipt of

the final report of the Operating Agency and directed BIFR to
reconsider the matter in the light of final report of the operating

agency. The operating agency submitted a report dated 29-10-1996
(received by BIFR on 5-12-1996) suggesting fresh infusion of funds

to an extent of Rs 173 crores. By Order dated 28-5-1997, BIFR

again made several suggestions to the Government to consider
whether it was possible to fund the company to revive its activities.
Government refused to infuse funds requires^ having regard to the

suspected viability.

However, the government stated that if there is

pyenture participation with a party having managerial.

p •
''V

7^ (

5;

57

teclwical and financial competence, government would waive default
interest of Rs 295.87 crores and convert the loan of Rs 70.67 crores
into an equity and write off losses of non-plan loan of Rs 76.15

crores.

36.7) Thereafter, the Operating Agency submitted its third and final
report suggesting fresh infusion of funds to the tune of Rs 198.45

crores, apart from writing off Rs 370 crores and further suggesting
grant of several concessions by the Governments of Karnataka and
Andhrapradesh, rationalization by heavy reduction in strength of
labour and adoption of modern technology'.

By order dated 5-8-

1997, BIFR granted time to Government of India to submit its view

in the matter. On 5-5-1999, Government of India informed BIFR

that global tenders were invited that as it was not possible for it to
provide additional funds; that it had also prepared to introduce

voluntary retirement scheme [VRS] for the employees, so that their

interest could be protected. It was found that two parties who had

shown some interest, did not have the managerial, technical or
^fnfencial capacity for the project and therefore the government sent a

//o <

i

Wk

ednin mication dated 27-1-2000 to BIFR that the company may be
)

/ I

ZiANGE'

r ■'
58

wound up. On 1-2-2000, the proposal submitted by the workers’ unions
requiring assistance of Rs. 100 crores was also considered and found to be
not feasible.

36.8)

On 21-2-2000 BIFR again considered the matter in detail

and having found no way to revive BGML, tentatively reached the
conclusion that BGML should be wound up. After issuing show cause
notices, it passed a further order on 12-6-2000 recording the opinion that
BGML should be wound up.

37.

In view of above, the contention of the workers’ unions that-

BIFR had not considered the proposals, is incorrect.

What should be seen

is not only the final order of the BIFR dated 12-6-2000, but series of

orders passed by BIFR between 1992 and 2000, considering several

proposals at several stages. It was unnecessary for BIFR to repeat or refer

to contents of all its earlier orders while passing the final order dated 12-62000. AAIFR has affirmed the order of BIFR after giving an opportunity

to everyone.
37.1)

While there can be no doubt that every effort should be

made to revive the company and protect the labour, the court cannot

merely on sympathy and sentiment, interfere with the orders of
?
•r



J31FR/AAIFR.
4

f
<

-

W'
A

lhe main question is whether the opinion reached by

59

BIFR/AAIFR that ‘the BGML, is not likely to make its net worth exceed

its accumulated loss within a reasonable time, while meeting all its
financial obligations and BGML as a result thereof, is not likely to become

viable in future, ‘%nd therefore it is just and equitable that the company
should be wound up”, is proper or not.

If the conditions necessary to

reach such a conclusion exists, the mere fact tliat it is likely to cause

hardship to the employees will not be a ground to reverse the decision. The
government has offered a VRS package to the employees to mitigate such

hardship.
37.2) We will now consider the proposals of the Unions. KfsHs
the government should writeoff the loans and interest exceeding Rs.500
crores, and restructure/rehabilitate BGML as was done in the case of

Hindustan Copper Ltd., [HCL]. In the case of HCL, tlie government took

a decision to convert the outstanding loans of Rs 180 crores into non-

cumulative redeemable preferential shares waive the interest of Rs 167
Crores, provide working capital as term Ioans from the financial
institutions to tlie tune of Rs 75 crores against its guarantees, and also

n loan of Rs 414 crores for VRS. But different
Z^/compijn^ in dlB nt situations require different policy decisions.

b

't L

)

/
&

-

60

Whether any further capital should he pumped in or whether any loan

should be converted to equity or whether any interest written off, is a
matter of policy. Courts are not entitled to interfere with such policies. If
chances of revival are good, no doubt, the government may take a decision

to waive interest, convert the existing loans into capital and advance
further loans.

But, if the government is of the view that any further

assistance to BGML would be towards a lost cause,as it had no chance of
revival, and therefore decided to cut losses, it cannot be said that such a
decision is arbitrary.

It is relevant to refer to the following excerpt from

the chairman’s speech in the first Annual General Meeting of the company
held on 21-1-1973:

The Bharat Gold Mines Ltd., inherited at the moment ofits birth
an unenviable legacy ofcentury-old mines already on the decline
and long past the stage of profitability, replete with obsolete
equipment and obsolete technological and managerial practices
that have been the main cause of a level of productivity, the
owest probably tn the field of metalliferous mining anywhere in
the world, at less than one-fifth ofa ton per manshift. ”
I he decision of Central Government is not open to question. BIFR/AAIFR
have considered all relevant aspects. Therefore the Learned Single Judge
could not have interfered withAdecision of BIFR/AAIFR, second point is
answered accordingly.

<

f

J
lie: PointNo.(iii):-

38.

BGML made an application dated 29-11-2000 to the

Government of India

for prior permission to close down its

undertaking under Section 25-0(1) of the Industrial Disputes Act.
The application was considered by the Government and after
considering the points putforth by BGML and the Workmen during
the healing on 3-1-2001, Government passed an order dated 29-12001 granting the permission sought the said order is extracted below:
I am directed to refer to your application
No.PD:PMc- 10(C) :2000-01 dated 29-11-2000
on the above subject and to say that your
request for closure of Bharat Gold Mines Ltd.
(BGML) xv.e.f 01-03-2001 has been carefully
considered by the Government on the basis of
submissions made by the management and the
yvorkmen/unions in their documents fled and
also during the hearing held in the Ministry by
Smt. Padma Balasubramanian, Joint Secretary’
in the Ministry on 03rd January, 2001.

Amount the reasons given by the
management for closure of these mines, were
high cost of mining as a result of the depth of
mines, high tariff rates of electricity,
of economic ore reserves, outdated
' A'^^^^ -^^^epletion
maj^Mnery, reduction in gold prices (both
d^tp^ic and overseas) and liberal import
VC- <
polic^for gold.
The management also
mentuffied that efforts were made to revive the
k;(,
Vo-* <

mines by inviting joint venture partners/copromoters.
However, for
technical and
financial reasons, rehabilitation was not
possible. The workers are being given the
option of the Voluntary Separation Scheme
(VSS). Those not opting for this Scheme would
be retrenched under the industrial Disputes Act,
1947,
The representatives of workers, on the
other hand, were of the opinion that BGML
should not be closed down as it was the only
Company mining gold in the country.
According to them operations at the mines have
become uneconomical because maiket price has
not been paid to the Company for producing
gold and adequate finances had not been
provided for rerdval/modernization of these
mines. They were of the view that the prospect
of opening shallow mines in the area had not
been fully explored and that there was scope of
recovering gold from tailings. They informed
that the VSS package is not attractive since
wages have not been revised since 1992. The
workmen and their families would, therefore, he
severely affected due to joblessness as a result
ofclosure of the Company.

Taking into account the submissions
made by both the management as well as the
representatives of unions, if appears that
continuation of operations in the BGML mines
is not viable and would only add to the financial
burden of the Government. The mines have not.
been producing any gold since 1st April, 2000
and around 4000 workers are being paid idle
wages. The possibility of resuming operations is
minimal given the high cost of mining. The

O' (

< <

4



option of mining gold from shallow depths at
lower costs has also been explored by experts
but no domestic or foreign partners are willing
to make requisite investments for development
of these mines.

Having regard to the genuineness and
adequacy of reasons stated by the company and
also keeping in view the interest of general
public and all other relevant factors, permission
is hereby granted for closure of BGML, w.e.f
01-03-2001.
The VSS scheme would be
operated in accordance with the directions of
the Court.

The said order is challenged on the same grounds urged in respect of

point No.(ii))i.

Those contentions have been considered in detail

while dealing with point No.(ii). The employees also contend that
the Government of India did not consider the several contentions
urged by them, while passing the order dated 29-1-2001.

39.

Under section 25-0(2) the Government is required to do the
i

following before taking a decision to either grant or refuse
permission:

A

I

(1) “make necessary enquiry into the facts and
circumstances of the case, as it may think
necessary;
/

1
)

lb

(2) give reasonable opportunity of being heard
to:

(")
(ill)

the employer;
the workman; and
the persons interested in such
closure

(3) consider the

(0
(d)

(Hi)

genuineness and adequacy^ of the
reasons for the closure stated by the
employer:
the interests of the general public;
and
other relevantfactors.

(4) pass an order in writing granting or
refiising to grant permission applied for
stating the reasons therein for grant or
refitsal to grant permission; and
(5) communicate the order to the employer and
the workmen. n
40.

We find that necessary enquiry into the facts and

circumstances

have been made.

Relevant file shows that* the
i

following aspects have been taken note of?
• BGML has made continuous losses for the
last 10 years which have now accumulated
to Rs.502 crores.
• The total cost of mining 10 grams of gold is
Rs. 19,319/- of which interest on Government
loan alone is Rs. 7,291/- and maintenance of

'z
!

mines, including pumping, is Rs. 2570/-. The
vaiahle cost which includes salaries,
materials and power, is Rs.5361/-.
• Given the depth ofalmost 3 kilometres below
ground level, very high cost has to be
incurred for pumping of water contributing
to non-viability ofoperations.
• The tariff rotes (in rupees per kwh) for
electricity has increased manifold over the
years from Rs.0.27 in 1981 to Rs. 1.25 in
1991. and Rs.4.32 in 1999-2000.
• The mining is uneconomical primarily
because of depletion on economic ore
reserves, problem of deep level mining, old
and outdated machinery, high fixed cost due
to infrastructural facilities, reduction in gold
prices (both domestic and overseas) and
liberal import policy for gold.
• Three rehabilitation schemes were worked
out by ICICI, two of which were not
accepted by the Government and one was
not agreed to by the workers.
• The management also explored possibilities
of revival by floating global tenders for
foint-venture/co-promoters.
These
applications were found to be technically
and financially wanting and were hence
rejected. Anglo Asian Private Limited of
South Africa signed a Memorandum of
Understanding (MOU) with BGML for gold
mining from shallow depths but ultimately
withdrew from the MOU.
The Operating Agency's rehabilitation
- '■■^schemes were not found acceptable by the
^■■.Govei-nment as these entailed substantial
fres^nfusion.
.

1 t

.f

64

The Government ofIndia took a decision not
to extend further financial support bevond
31s March, 2000.
• The I3IFR issued .orders for winding up in
June, 2000 and the case was referred to the
High Court of Karnataka for winding up
proceedings.
• The net requirement of cash for the company
for payment of salaries, EPF etc. is Rs. 3
crores per month. An option of VRS has
been offered to the workers on the pattern of
Department of Heavy Industries (DHI) as
well as on the Gujarat pattern.


The following points urged by tlie employees were also considered:
• BGML is the only gold mine in India and
therefore it should not be closed down.
• Operations at the mines have become
uneconomical because market price has not
been paid to the company for producing
gold.
Finances have not been provided for
revival/modernization ofmines.
• The prospect of opening up shallow mines
has not been fully explored.
• The high cost of power is mainly because
only one shaft is operated in the entire
stretch of8 kilometres ofthe mines.
• There is 40 tonnes of gold available from
tailings which has not been recovered.
• There are huge land assets of the company
which have not been fully utilized/sold for
realizing finds for rehabilitation of the
company.


)O\.
)Z v

'P '* H

■>



10,000families wll be affected and reduced
to penury ifthe workers are rendered jobless
as a result ofclosure.



Reasonable opportunity has been granted to the employer and
Thereafter all aspects have been considered and a

workmen.

reasoned order has been passed. The said order therefore does not
suffer from any infirmities and does not call for interference. The

learned Single Judge ought not to have interfered with the same.
<<4

lux



Conclusion:

41.

13-3-2002,

On

learned counsel

for the

Employees’

Association submitted that without prejudice to its contentions, the

^Association will give proposals for settlement for consideration by
the Central Government and the management of BGML. learned
Additional Solicitor General appearing for the appellants, stated that
the proposals will be considered with all seriousness.

When the

matter came up on 14-6-2002, learned Solicitor General submitted
that in pursuance of the earlier interim orders made on 13-3-2002,

z^^C5S<^6iinent of India had considered the matter with reference to the

j/p /

^A^prescntyfmns received from the workers and officers’ unions and
J

i

/

decided to making the following offer to the employees of BGML

without prejudice to its rights and contentions:

H(i) To offer a Special Terminal
Benefit package to 3533 employees for one
month from the date of notifying the scheme
with an option to choose either Heavy industry
package or Gujarat package of voluntary
separation on the lines of the package offered in
December, 2000 and which remained valid upto
28-2-2001. (This package will be of around
Rs. 88 crore.)
I

42.

(ii) The sale of the hutments to such of
the employees-as were on the rolls of the
Company (BGML) as on 28-2-2001 at
reasonable price which will be fixed by the
Itquidator/Collector or any person authorised
by the Court and the same be recovered from
the Special Terminal benefit Package proposed
to the offered in Para (I) above. n

Learned counsel for the Employees unions were not agreeable

for the said proposals. They pointed out that the Central Government

had brought u'p a modified VRS package on 6-11-2001 and what was

offered to the workers of BGML was far less than what was
contained in OM dated 6-11-2001. They submitted that they are still

getting the pay of 1987 pay scales and they did not have the benefit
of any revision of pay scales after 1987. They, therefore, submitted

if

61 .
that the government should at least extend the minimum benefits as

per the VRS package contained in Official Memorandum dated 611-2001 instead of pre-6-11-2001 package and also convey title to

their houses in the!/occupation at a concessional rate of about Rs

1,000/- per house and corresponding higher price to officers.

43.

Learned Additional Solicitor General submitted that the offer

made was on the basis of the cabinet decision , after taking note of
all relevant aspects. He however submitted that he would put forth

the request of the employees unions to the Central Government
again.

He also submitted that OM dated 6-11-2001 was not

intended to apply to employees of BGML and that it does not

contemplate giving away houses at a concessional rate or free of

cost. When the matter came up subsequently on 5-9-2002, learned
Additional Solicitor General submitted that the matter was

reconsidered by the Cabinet and decided not to give any further

concession.

It is thereafter, the matter was heard on merits.

^^ Retrenchment compensation under the Industrial Disputes

Xi
6^

5. days wage for every completed year of service.

The

/

I

appellants have however offered a choice of either Gujarat package

or Heavy Industries Package, to the employees of SGML.
■ii .. ---iBirjii-ii i

It is

|t _.............



stated that under the Gujarat package, an employee would be entitled
to an ex-gratia of 35 days salary for each completed year of service

and 25 days salary for each year of remaining service. On the other
hand under the HeaVy Industry Package, an employee will get 45

days salary for each completed year of service. It is stated that
where an employee has a longer future service, the Gujarat package
-

is more advantageous; and if an employee has already put in a long
v.—---------- ---------------------- ------

■=

_• j

-

service and is to retire shortly. Heavy Industries package is
advantageous.

The Central Government has been fair enough to

give the choice to the employees of the BGML in regard to said two
packages. But what is relevant is the OM dated 6-11-2001, which

modified the VRS scheme for Central Public Sector undertakings,^

which in far more advantageous to employees. It contemplates
ex-gratia payment in respect of employees on pay scales at 1-11987 and 1-1-1992 levels, computed on their existing pay scales in
accordance with the extant scheme, shall be increased by 100% and
50% respectively.

n
f-

rV

45.

A careful reading of the said official memorandum dated

6-11-2001 shows that the same is applicable to all central public
sector undertakings The said official memorandum does not appear

to restrict the applicability thereof to any particular PSU. Having
regard to the peculiar facts and circumstances of this case, we do not
'

wr

Toll -

-- ~

~

.

see why the central government should not extend the benefit of the

modified scheme contained in OM dated 6-11-2001 to the
employees of the BGMLj

Who have not received any revision in

the pay since 1987. Their future is bleak.

Their proposals for

revival/rehabilitation of the company have been rejected.

46.

On the peculiar facts and circumstances of the case, we

commend to the Central Government the following measures:

(i)

To extend^the employees of BGML the benefit

of VRS as already offered with the ftirther
modification

contained

in

the

Official

Memorandum dated 6-11-2001.

To transfer/convey the Quarters/houses wliich
have been allotted to the employees of BGML at
a concessional price, say at the rate of Rs.10/-

/

; •

*

7JL
per sq.ft, where the site area of which is below
1000 sq.ft, Rs.20/- per sq.ft where the sital area

is more than 1000 sq.ft but less than 3000 sq.ft,

and Rs 30/- per square foot were sital area is
more than 3000 sq.ft..

Having regard to the

fact that the structures are very old and most of
them in a dilapidated condition and having

regard to the fact that the houses are being
offered under a retirement package at a

concessional rate

nothing may be charged

towards the value of structures. The benefit of

transferring houses should be extend^ also to
those who have already accepted the VRS,

(iii)

To take appropriate steps to enable such of the
employees who have accepted VRS scheme to

form arwacfcsfff co-operative by providing them

appropriate land and such machinery and
equipment as it can spare so that they can take

z

up projects wing their specialised knowledge

and experience.
(iv)

To allot the excess lands held by BGML to
needy ex-employees at reasonable rates to help
them rehabilitate themselves.

(v)

To give the employees another interim relief of

Rs 5,000/- to each employee within tv o months
to tide over their difficulties.

47.

We have made the above only as recommendations and not as

directions,^virtually a town is closed as a result of closure of BGML,
special provisions are necessary and we do ihopAhat the Central

Govemment will do justice to the poor and suffering employees, as
expeditiously as possible.

We make it clear that Central

Government may at its discretion modify the recommendations. The
OcVjO

Central Government mayAconsider any fresh proposals for revival if

s^it so deems fit. Be that as it may.
//^
C

fe.

48)T?\in the result, subject to tire observations in paras 46 and 47
.f

J e a^°'v these appeals as follows:

1

74
(>)

Order dated 16-3-2001, passed by the learned
Single Judge in WP Nos 157-159, 1343, 5118,

7987 and 450^-07 of 2001, is set aside;
(ii)

The said writ petitions stand dismissed;

(iii)

Parties to bear their respective costs;

(iv)

All

pending

applications

for

s^^T4^-s<^£e^e^jrection are dismissed.

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DYING PEOPLE OF A DYING MINING TOWN
The history of K.G.F is the history of raise and downfall of the yellow metal gold and
wretched of K.G.F were interwoven into this history. Today BGML and the people of
K.G.F face an utter neglect by the government and economic planners. Moreover, today
K.G.F reminds us of the victims of vampire suck dry of blood and cast aside.

The institution which fed the Mysore state with one third of its total (BGML) budgetary
revenue - is facing this sorry plight - an instance of a mother, who nurtured her child
(Mysore state ) being kicked to one corner of a dump.
HISTORICAL BACKGROUND:
The underground rock was burst by heating with firewood and immediately cooling with
water; once the digging level reached the water table, the work was abandoned and
moved to another site. This was how the most primitive mining went on.

In 1802 John Warren, a British army officer engaged in demarcating the boundary of
Mysore, he was amazed by local mining activity and reported to the East India Company.
But systematic mining started in 1871, by Michael F.Lavella, an Irish officer. Lack of
capital spell the venture’s doom.
The Kolar mining activity was given a new lease of life during the gold boom world
wide, the discovery of gold In California in 1848
In Australia 1851
In Africa 1880
Therefore the turn around occurred with John Taylor and sons, the British mining and
consultancy firm that had commenced operation in Kolar in 1880
The next decades were years of peak production, then Mysore was a princely state.
Therefore royalty was paid to the Mysore State.
The profits were so high as to exceed 150 percent the dividend paid to the Metropolitan
(British) shareholders represented 22 times the original investment Unfortunately all
these profit and even the savings of employees were invested outside India. Even the
royalties received by the state government were invested everywhere except in KGF. At
one stage Kolar Gold Mines were <contributing nearly one third of the total budgetary
revenue of Mysore Government.
The deliberately induced sickness of the firm or the slow poisoning of the firm started as
early as the Second World War period. There was a whopping 32,000 employees at KGF
during this period. However, gradually the men were axed ofT their jobs until the
members reached a paltry 4200 when the mines actually closed In spite of the vested
interest of the administration and politicians KGF managed to produce 800 metric tonnes
of gold worth Rs.45,000 Crores.

i

THE SAGA BEHIND THE CLOSURE OF MINES
A sick unit, is it ? Cost of production of lOgms is Rs. 19,000 compared to the market rate
of Rs.4000’is it so ? It is the best decision that any sensible government would do, isn't it?

That is exactly the picture that the Brahminic - anti-people government has given the
the actual break up is a revelation in itself
common man JBut
--------Rs. 14,000
Projected cost of production (per lOgms)

Rs. 6,000
Fraction spent as interest to loans (38%)
Rs.
3,000
Fraction spent on electricity expense (18%)Fraction charged on wear and tear (10%) - Rs. 1,400
Rs. 10,400
Total non-mining related expenses
Actual cost of production Rs 3,000 only.
The irony behind these figures is that the power-plant which supplies power to BGML
was actually an integrated part of the mines. Further still, an alien company - a MNC Volvo is given huge subsidies for making huge profits which in every way is adverse to
Indian economy. But the major revenue generator to the exchequer is charged unjustly
(Rs.4.57 per unit again Rs0.50 per unit which is the cost of production)
The irony continues .... the 10% wear and tear collected is for nothing at all as all
machinery has remain unchanged for the past 120 ycais says a report.

The loans and interests imposed on the company has its own sorry talc, the anomaly in
the pricing of gold is yet to be understood1 - the Government buys from BGML at the
of the Indian market price at which the
English market’s rate, which is just a morsel
i---Government actually sells.
The reduction in the man power has in no way helped the cause of the company. As
against the usual assumption that the work force and profit arc inversely proportional
BGML had earned maximum profit only when its work force was at its peak.

Then the well known banc on the Indian administrative class corruption and dishonesty.
The pilferage had cost the treasury Rs. 30 Cr per annum says Sushcela Gopalans
Committee Report. Management claims that it as unaware of such a piactice. Here too
there is a paradox, the security for such a firm is expected to be from the army brass, but
to the surprise of all there is a pot-bellied native who could be seen dozing at the sentry.
Reports also say that mining could continue profitably as all resources have not yet been
tapped.

2

PEOPLE'S PERSPECTIVE:
. .
People who had worked for 30 to 35 years in most dangerous working conditions, risking
their own lives (for 6000 miners have died so far), received retirement benefits which
were not even enough to clear longstanding debts.
The few thousands of people who had been gradually tired oft their jobs since a couple
of decades ago and their educated offsprings arc still wandering in search of a job in the
vicinity. Worse still is the fate of the recently axed 4,200 workers.
Wc have heard of animals and pro-civilization humans go in search of food from place to
place. But never was it heard in the recent past, of 8000 men plying between Bangarapct

and Bangalore every morning.
The fate of the 30,000 strong dependents of these people - women and children subjected
to deprivation of their fundamental rights. If untended the 200,000 population of K.G.F.
will silently die down due to the gross encroachment of labor rights and human dignity.
The pandits who determine the livelihood for their subjects — the wizards of Indian
politics have successfully seen to it that the 18 unions at no point of time unite to raise
their voice against the atrocities. Consequence - women and children arc left on the

lurch.

DALITS PERSPECTIVE:
Cast out by the "so-called" high caste bone-crushers of Tamil Nadu and Andhra Pradesh.
The worst treatment and inhuman conditions meted out to them compelled them to look
for an alternative.
The Englishmen jumped into the fray at this juncture. The minimal human respect and a
slightly better economic situation appeared as a star in the night sky. It appeared as if the
. salvation from their fate was knocking at their door-step. They readily answered the call
to be a slave of a different kind. They didn’t mind being shackled by chains to prevent
them from escaping.

They didn't mind being charismatically imprisoned in a restrictive 10 by 12 "thalti"
house. Generation after generation, for four such generations they had living in a proxy
slavery. For minimum wages they had done maximum work under maximum risk. I hey
very well knew that one could never be sure of coming out alive. The huge death toll 6000 in all is indicative of this risk factor - all this for want of minimum human respect.

The same human respect for which they forfeited their former native - is at stake. The
"once renowned" money generator of the whole state is now staggering to generate
enough money for a tiny morsel No sanitation, no potable drinking water, no electricity,
no free access to education. None of these. And worse still they’ve lost the "once
dominant spirit" to find an alternative for the better.

3

A whole city dedicated to Dalits - the first of its kind in the whole nation is now deprived
of even the basic identity of a human being.
On one side conscience and humanitarian consideration has gone a begging on the
other, these people have forgotten what it means to stand up and fight tor a better
livelihood. ’’PATHETIC" - wouldn’t sound any more meaningful other than in this
situation. It is amidst this suppression and victimization, our people managed to aHutn the
high literacy rate of more than 78%.
ROLE OF KPM:
On 20th February 1997 the compassionate and concerned citizens of KGF gathered
together to do something about the dilapidated state of the KGF people. From a humble
beginning with just pen on paper it sprouted into full-fledged movement, instigating and
inspiring the people to answer the need of the hour.

EFFORTS OF KPM:
13 half-a-day orientations were conducted for the KGF women.
- voters awareness before the last Lok Sabha and Assembly elections and rally.
- 11 days dharna 21/1/2000 -31/1/2000. Dignitaries such as N.P.Swamy,
Thirumavalavan (DPI), Prof. Babu Mathew (Registrar National Law College),
Prof. Hassan Mansoor, Anitha Reddy, Krishna Murthy, Palani Kumar, Jecva
Anand and M.K.A. Kumar participated. A huge KGF people support was drawn both monetary and human support.
cycle rally from KGF to Bangalore to meet Governor.
60 people from mining community landed at Delhi for Demonstration, Rally and
Dharna from 2-5 September 2000 at Jantar Mantar. Two rallies, one from Delhi
Gate to Red Fort on 2/9/2000 and another solidarity rally supported by Delhi
based Trade Unions, Human Rights Organizations, Women’s Organization,
Women’s Organizations and Social movements from Mandi House to Parliament
street on 4/9/2000.
- KPM had attempted the seemingly impossible task of uniting the widely
dissipated trade unions. It did succeed in comprehensively drafting a
memorandum and drawing all the factions into single-mindedly sign it and submit
it to the Central Department of Mines.
An empty pot rally was organized on July 31st from Champion Railway Station to
Suraaj Mall Circle.
- Solidarity rally by KPM in support of the on-going struggle of BGML workers,
TCL BEML employees, DSS and also expressing solidarity in the BGML schools
issues.
- An exposure lor 40 students of St. Joseph’s Evening College was organized by
KPM on 6/1/2000.
A comprehensive seminar on "Globalization and its impact on KGF people was
organized by KPM on 26th and 27th January 2002. The seminar hit the nail on the
head when experts like Prof Babu Mathew and Fr. Marianathan addressed the
gathering.

4

A mass signature campaigni was initialed since January 2002. People themselves
have taken initiatives to collect signatures through 120 Block Panchayats. I he
culmination of this would be the Padha Yatra.
SUCCESS OF KPM.
-The Government was pressurized to postpone the closing ol mines from January
2000 to 31 March 2001.
-The Board of Industrial and Financial Reconstruction (BIFR)was forced to call off
the meeting scheduled on 4th September 2001, solely because of the Delhi Rally that we
organized.

Principle Objectives of Padha Yatra:
1) Patta for the houses at KGF for mining workers.
2) Taluk status must be given for KGF which already has all the credentials to
become one.
3) Declare KGF as a tax-free Industrial City like I losur

5

I

MASS SIGNATURE & PADAYATRA CAMPAIGN TO ADDRESS
THE PLIGHT OF THE DALIT MINING COMMUNITY OF KGF AND
——defend DALIT HUMAN RIGHTS

- PART I A small team of social activists, advocates, nuns and mining workers
all belong to the victimized Dalit mining-workers' community have
presently formed a core team to spearhead a movement of the
people. The team is called KPM which has so far organized series of
struggles, rallies, protest demonstration and campaigns against the
closure of the gold mines and other various issues that affect the
mining Dalit community in general and women in particular. Due to
lack of resources the initiative could not be carried out at widei and
deeper levels. Hence KPM has resolved to take initiatives for fund
raising. The plan of action stretching for a period of three years is as

follows:

Goal
Political emancipation of Dalit mining Community of KGF and
protection of their Right to Life
Mission
- Enabling the emergence of 'Peoples Movement' of Dalit mining
community in Kolar Gold Fields.
Grassroots
level
mobilization
through
struggles
and
demonstrations addressing the burning issues that affect the
lives of the community.
- Campaign for 'Dalit Human Rights Protection & Promotion'
- Lobbying & networking in this direction.

Objectives
1. Grassroots level conscientization and mobilization of Women
and Youth in 153 blocks of KGF' through publication, area
meetings & street theatre performances within 2 months period
- February & March 2002.

2

2. Formation of a Cultural Troupe consisting of 30 to 40 youth &
women trained in creative dramatics & group media in the
month of February - III week.

3.

Mobilization of support & solidarity of other 40 progressive
movements & groups — for this struggle/campaign bclore
March closing, and forming a Bangalore Solidarity group at the
end of March.

4. Organizing a massive signature campaign and completing the
collection of 1-lakh signatures within a period of 3 months Feb
to April.
5. Carrying out a Padayatra with the participation of a minimum
300 cadres/ well wishes / community leaders.
6.

Protest rallies, Dharna and demonstrations at Bangalore.

7.

Planning the next phase of action along with the Bangalore
Solidarity group

MASS SIGNATURE AND PADAYATRA CAMPAIGN

II.

III.

IV.

V.

- PART IACTIVITIES
Printing & Publication
1. 5,000 handbills in Tamil for KGF
2. 3,000 handbills in Kannada for KGF
3. 10,000 Handbills for Bangalore/District/on the way
4. 1000 posters - Bangalore /KGF/ other places in Distrcit
5. Printing of 5000 forms for the collection of 1 lakh
signatures
2-day Orientation & Planning Meeting for 60
Cadres/leaders
1. Hall
2. Resource persons
3. Food
4. Stationeries
5. Travel
6. Public Address system
Solidarity mobilization meetings at State/ District levels
for 400 members (Combined figure - Around 10 such
meetings)
1. Food
2. Travel
3. Communication
4. Hall
Cultural troupe training for 35 persons in 4 days
1. Food
2. Hall
3. Travel
4. Resource persons
5. Stationeries & Materials
Area meetings in mining area covering 150 blocks - in 70
centers
1. Rent for PA system
2. Travel
3. Hall or Shamiyana
4. Hand bills
5. Food & welfare
6. Sundry

Pape 2

Public Meetings/Rally in KGF
1. Auto Announcement for 2 days
2. Stage
3. PA system
4. Wall Writing
5. Handbills
6. Travel for Guest speakers
7. Food for guests
8. Accommodation for guests
9. Sundry
VII. Padayatra
1. Food for 100 members for 4 days
2. One four wheeler rent for 4 days
3. First aid & medicines
4. Hall for accommodation for 3 nights
5. PA system rent for 4 days
6. Wall Writings
7. Audio & video documentation
8. Banners / Placards
9. Sundry
VIII. Public meeting in Bangalore
1. Publicity
2. Stage
3. PA system
4. Audio & Video documentation
5. Guest speakers travel
6. Guest speakers welfare
7. Travel
8. Banners / placards
9. Sundry
IX.
Dharna
1. Travel for all arrangements
2. Public Address System
Rally
X.
1. Drinking water supply
2. PA system
3. Banners & Placards
4. Travel for all arrangement
5. Audio XVideo documentation
6. Sundry

VI.

•- Vo kA.
■ >

•»

SICHREM
South India Cell for Human Rights Education and Monitoring
I/F Anjanappa Complex, 35 Hennur Main Road, Lingarajapuram,
Bangalore 560 084, Ph: 2547-3922 / 2549-2856, E-mail: sichrem@satyam.net.in
23rd February 2004

Press Release
Preliminary report of the Public Hearing in Kolar Gold Fields on large-scale
violations of human rights of the mining workers and their families
The public hearing, organized by South India Cell for Human Rights Education
and Monitoring (SICHREM), took place on 21st February 2004 in the PWD Guest House
in Kolar Gold Fields (KGF). The jury panel was headed by JUSTICE H. SURESH
(Retd) and other members were Dr. Jeevan Kumar, Ms.Geetha Menon, and Advocate
Manohar Hosea. At the request of the District Human Rights Centre-Kolar (DHRC), we
the undersigned members of the jury panel visited KGF and held a public hearing of the
affected persons and other concerned citizens of KGF. Also, the jury panel visited
Kennedy’s Block, KNJS Block, R.D. Block Marikuppam, being the residential areas of
the mine workers. We recorded the statements of about 40 affected victims of human
rights violations and also other concerned citizens namely the trade unions, NGOs,
linguistic minority groups, political parties, and Dalit organizations.

.Currently, KGF is where the three-hundred-year old recorded history of the gold
mines came to a grinding halt in April 2000, throwing into poverty and unemployment
about 3,800 workers in a town bustling with 300,000 people. KGF is one of the only
sites of gold production in the country. The mines were operated by the Central Public
Sector Undertaking (CPSU) called Bharat Gold Mines Limited (BGML). As the mines
were being systematically closed, the state made no moves for survival of the mines, or
for an alternate employment for these BGML workers or for any rehabilitation of the
persons affected by such closure.
Worst Violations of Human Rights

What we witnessed and heard clearly spells out large-scale violations of human rights
of all the workers and persons within the KGF area. Broadly all the workers who lived in
KGF for generations together, have not only lost their livelihood, but also have lost
everything that goes along with life. They lost their jobs, they lost their earnings, jmd
worst of all, they lost their right to live with human dignity.

South India C'c/Ifor Human Kights Education and Monitoring- SJCHKEM

Eage 1

The following are the glaring violations of human rights:
• t

A) Loss of Jobs
Workers lost their jobs altogether without compensation or alternate rehabilitation
scheme whatsoever. As we understand, neither the management nor the government
made any genuine efforts to comply with the requirements of law.

B) Disconnection of Water Supply

Witness after witness deposed before us that on the closure of KGF, the management
disconnected the water supply and electricity. This resulted firstly in lack of adequate
water supply for drinking, for washing, and for. other daily consumption. People have no
choice but to buy water from outside agencies. We are told that each bucket of water
costs Rs 1.25/- and they are just not in a position to buy water as it has become an
additional burden for them. Secondly, women and children stand in long queues to fetch
water from the place where it is supplied. Thirdly, we found that on certain days, water
being supplied from the water tank is accumulated from the mines, which are not potable
at all.
C) Overflowing Toilets

We are told that there are about 248 public toilets, but there is no water supply. We have
seen some of the toilets, which have not beet) cleaned for the last several months. The
outlet drainage and pits are completely blocked, so much so that they are overflowing
with human excreta and people are unable to use the toilets. The smell around is
nauseating and no human being should be compelled to live in such areas. We understand
that the carrying of night soil system was in vogue there till recently, which itself was a
violation of human dignity, but even that has been discontinued. We further find that the
worst sufferers are women who are forced to use the toilets, while men can go in the open
to answer the call of nature.

D) Likely Outbreak of Epidemics
The lack of sanitation and hygiene will result in outbreaks of epidemics, like Cholera,
Malaria, etc. and the government and the local authorities do not seem to be worried
about this.

E) Accumulation of Garbage
The continuous mining activity for the last 100 years in this area has resulted in the
accumulation of huge dumps of mining waste (mill-tailings) occupying about 106/o of the
total area of the township. Besides occupying about 10% of the total land in the township

Souih India Cel! for Ihim an Rights Education and Monitoring- SICIIREM

»1

Page 2

these tailing dumps rise to a height of about 30m from ground level amidst the human
settlements and arc considered polluting with cases of cyanide poisoning occurring.
We were told that while there was Rs. 45,000A ^sanctioned by the government-for garbage
cleaning, on the other side we witnessed that there were large piles of garbage
surrounding the areas of these populations. We were_also told that while-the municipal
authorities were ready to clean the garbage, there was a lack of cooperation by the
Karnataka Government in releasing adequate funds.
F) Closure oT Hospital

We were also told that immediately aftei closure of the mines, one of the hospitals, the
BGML hospital, the only hospital available to the workers, was closed. With iliis result,
the residents now have to go to private hospitals that are more costly and they cannot
afford that. It appears that there were dispensaries which have also been closed down.
Widows of former mine workers spoke of their hardships and tragedies that occurred
while they were transporting their sick husbands to other hospitals much further away.
These husbands died in transit and this could have been avoided, had the BGML hospital
stayed open. We also found that in the areas where the workers are living there is not
even a center for primary healthcare.
G) Deaths due to Stress

After closure of the mines, about 60 deaths of former mine workers were reported. A
large number of these deaths were caused by the health hazards due to the mining
environment and the lack of adequate health facilities. Many widows told that the deaths
of their husbands were also caused by the stress and mental agony due to their sudden
unemployment and inability to take care of their families.
H) Lack of Provisions for Ration Shops
Before the closure, the company had provided rations to the population. With the closing
of the mines, the daily rations came to a stop. As at present, there are no ration shops for
these workers and there is no proper provision for proper distribution of rice and grains
through any Public Distribution System (PDS). To buy their food equirements, the open
market has put an additional burden on them. We are also told that occasionally certain
bags of grain are given to some of the areas, and they are simply thrown among the
residents resulting in a stampede and in one instance, it resulted in a death of one of the
residents.
I) Efforts to Earn One’s Livelihood

Since the government has not come forward with any alternate scheme of jobs, people on
their own arc making efforts to survive. Daily, about 6,000 people, mostly women and
youth, make the long and arduous journey in over-crowded trains to Bangalore City
where they earn meager salaries of Rs 800- 1000 per month, which is not enough to make
a living. As a result of this daily travel from KGF to Bangalore Urban, most of their time
is spent traveling leaving them no time to spend with their families or on other daily

South India Cell for Human Rights Education and Monitoring- SICIIREM

Page 3

C0Encer“‘1'collcc'firewood f™
for employment as he soiH ‘no? fit fn
C
* WOrk’ there is n° alte™tive
women during the mimnL tiZ. h for^ncultu^
P^ty businesses once run by the
industries or sectors that can accoxnmculatTth6 °Ut °f b.U!ineSS’ and there are no other
mmcidate tlie_.orm£r mining workers within KGF.
J) The Denial of Education

closure oHbe com^
the employee’s children. After the
to drop out of school. These children’s fimir
bEen Pnvatized’ -fo^ng many children
has also resulted in child labour and in son^ instX^
™S

K) Broken Marriages and Engagements

^TthTthTXL,h„e workers

p,id mudi Wow

hardly sufficient forth wXrs ^d "evefexce;ded Rs 5000/-per month^ This was
future needs, ^e esddenL Cr
T ’0 tneir fami,ies and simultaneously save for
daughters married for want of finance.$ S
S°me 03568 th6y COuId not get their

L) Exploitation of Moneylenders
S beTpaM
°f
™ denied to ,hera- W 1»ve
couns, Lrnau
frora >h»
unsuccessful. Because the S, renabllltatl0n’ and compensation, have rail been

M) Media- Misrepresentation
We have some evidence to the effprt that

N) Discrimination- As Dalits

XXTuSZ
K discnmination
a"d omthese
t0 * *
“<=
th y‘ ffaeV
e double
grounds

The anathv nf ihl Cfaf 7

India Cellfor IInman Rights Education and Monitoring- SICHREM

Page 4

I
/
/

O) I he Karnataka Government’s Order dated 29th October 2002

It appears that the City Municipal Corporation had agreed with the SGML to take over
the water supply system and sanitation system of BGML area. This was to be done
without any expectation on the part of the Government. However, by an Order dated 29'
October 2002, the City Municipal Corporation was told not to spend any amount on
account of BGML colonies. We consider Order most shocking and for the misery of the
people, the Government of Karnataka should be held responsible.
Recommendations:

I
-

We are still in the process in inquiring into the reasons and the validity of the closing of
the mines. We arc still enquiring whether the revival of the mines could be achieved in
reasonable time. We were told that the mines are still economically viable including
Chikarugutta and Vichala Mines. John Basten, Retired Chief Mining Manager, BGML,
stated that the life of the mines could be extended for another 100 years and that it is
possible to revive the mines.
We are now presently concentrating on the inhuman wrongs done to these former
workers and their family members. We therefore recommend.

I)

The Government of Karnataka should withdraw the said Order at 29th October
2002 and further direct the City Municipality Corporation, and the other
officers concerned to take effective steps for restoration of all basic amenities
to these people. While the workers have lost their jobs, it does not mean that
they should be denied their basic amenities.

H)

Restore water supply to all the existing colonies of workers through the
existing old pipes laid down for the purpose of distributing water, and
whenever necessary by laying down new pipes and other requirements.

Hl)

Restore electricity to the worker’s homes. We find no justification for
disconnecting electrical supply.

IV)

Restore adequate water and drainage facilities for the public toilets/sanitation
purposes.

V)

Restore the previous hospital and all medical facilities that were available
before the closing of the mines.

VI)

We recommend that the government should properly introduce a Public
Distribution System (PDS) to provide adequate rations to the workers and
their families.

VII)

The government must come up with a scheme to provide an alternate source
of employment for all the workers.

Som/1 India Cellfor Human Rights Education and Monitoring- SICHIUlM

Page 5

VIII) Restore the School to its original status that was run by BGML to provide free
and compulsory education to the miner’s children.
We propose to send a copy of these preliminary findings and recommendations to the
Government of Karnataka and also to the Cent, al Government. We hope to receive a
response wrthm 15 days. If they respond, we will certainly take into consideratS1 their
repb _s in our final detailed report. However if they fail to respond, we will be at liberty
to proceed with a final report without any further reference to them.
Y
'Z'y

Justice H. Suresh

O7
Geetha Menon

Drf]

Advocate Manohar Hosea

4

I

Souf/i India Cellfor Ihunan Rights Education and .\fonit()>:ng- S1CIIREM

Page 6

v

about their organization

Page 1 of 1

Presenter: Anbazhagan/ Christopher.

Organisation: Bharat Gold Mines United Employees Association
State/Region: Karnataka.

Sector/Mineral/lssue: Gold Mining TU Labour Rights/ Dis-investment-Closure/
Dalits Rights
Icaoa0 ar Gold FieldS KGF has been functioning for the past 120 years. With a one time workforce of
36000 workers it now has been reduced to just 4000 workers. First started by the Mogul ruler Tipu
Sultan it was taken over during British rule by an Englishman John Taylor in 188O’s,.and nationalized
by the Government of India after Independence. It has so far produced 850 tons of gold. For this, 4600
workers died in accidentsjalone, 6000 workers were disabled, 11000 workers suffered from silicosis.

The mine has an 80 km reef of which only 8 km have been operated (mined) so far, the management
has declared BGML (Bharat Gold Mines Limited) to the BIFR for closure despite several studies and
reports claiming that the mine can operate for another 40 years.
Ihe. Government wants to hand it over to a private company, Companies from Australia Canada and
the USA have been eyeing its rich tailings.

KGF has other industries too a wagon factory and manufacturing equipment like^aqes for mines.
KGF is a township with a population of over 3 lakh people a majority of them being Dalits.
Presenter: Iswar Soren

http .7/www. mmpindia.org/Local_struggles.htm

9/19/2004

Cjd-^ h fk-A

• •

BHARAT GOLD MINES LIMIT

W "WS’ TTT^T
CMKd

(A Government of India Enterprise)
Registered Office: ’SUVARNA BHAVAN',
Oorgaum RO., Kolar Gold Fields - 563 120.
Karnataka State - INDIA
Phone: (08153) 360274/360285

^T?nTTIk’S '-ble-S - 563 120.
=b-lfd=b

Fax: (08153) 360330
E-mail: bgml@vsnl.com
Grams: 'GOLDMINES'-Oorgaum - 563 J 20.

MD/BGMl./20()3-()4
Shri R. Manohar,
Programme OITicer,
(?<x)r<linator - District Human Rights Centres (DI IRC?),
Anjappa (’omplex,
35, Hcnnur Main Rcxid,
SL Thomas Town P.O.,
BANGALORE - 560 084.

__ ___ —--4^^7.2'004

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i

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•• •• ••

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,

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... .

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L;-"'

Dear Sir,

Sub: Preliminary Report of (be Public Hcar^ig iii Kolar

Scale violations of Human Rights of diu^M^Iitg’Workcrs and their families -.
-$$$-

We refer to your letter dt. 26,b February, 2004 enclosing therewith a
copy of the preliminary report on the above mentioned subject and write to
furnish our comments as under:
A) LOSS OF JOBS:
M/s. Bharat Gold Mines Limited was a . century old company whose
main product was gold. Earlier when the company was in prosperovs it gave
employment opportunities to thousands of people. Later on due to depletion
in ore reserves and gold production has come down the company was
incurring heavy losses year after year and the losses increased further from
1992 onwards due to which the company was not economically viabl&’.to
run. Hence BGML was referred to BIFR under Sick Industrial Companies
Act and the BIFR in the public interest has declared BGML as sick company
and was referred to the High Court of Karnataka for winding up. Even the
globle tender which was made for rehabilitating the company was also not
materialised since no company has come forward to take over the BG..1L
and run the Mine.
Meanwhile the Ministry of Labour has granted
permission for closure of the Company w.e.f 1/3/2001. Against, the closuic
order the Labour Unions filed writ petitions before the High Court of
Karnataka. The Division Bench of Hon’ble High Court of Karnataka has
pronounced its judgement on 26/9/2003 by upholding the order of closure.

i

...2...

In the said judgement the court has r1*‘he Centra! Goverrment
-----1 and the matter is

c*UIar dt

B) DlSCONNECl iON OF WATER SUPPLY:
* ''"‘S n’ainlaininS

water supply system and power sunX

electricity to BGML and BGML township
S^mudram for supplying
spent crores of rupees to convert the 2S r
C 0Sure the Company had
convert 25 cye.e res.dentia! power s^yT'Xr^rii^
pumps etc. the entire
--r water supply system was handed over to the Citv
Municipality which was takmg care of water supply to the labour colonies
CiC. Ixiter on the water
Water Supply and Drainage^oard7^™ “
Karnataka Mn

C) OVERFLOWING TOILEl'S:

AT-envards the Company bL
=2
llesh out latrines / toilets with r—) necessary pits and water supply. There were
separate sanitation department
N established in each Mine and these
departments were maintaining the latrines / toilets in good condition tin Se
closure of the c-company. Uter ?n d
of
M the
.maintenance of these latrines /
- . toilets were handed over to the City
Municipality.
D) L IKELY OUTBREAK OF EPIDEMICS :


n^nta^VX^byVoMi''
handed oveZto the CityLunXlity

*

“d
Were
ftnC'iO”S

/


f

...3...
E) ACCUMULATION Ol: GARBAGES :
Before the closure of BGML there were separate sanitation
departments in each Mine / Division which was removing the garbages
frequently and the entire township was kepi clean. After the closure of the
Company the sanitation was handed over to the City Municipality. In the
tailing dumps in order to avoid pollution plantations were made by the
company.

E) CLOSURE Ol; HOSPITAL :

After the closure of the company the matter was taken up with the
Karnataka Government to take over the BGML Hospital, but the State
Government was not interested as there is already one Government Hospital
at K.G.F. Hence the hospital was closed.
G) DEATHS DUE TO STRESS :
When its networth become negative the Company has introduced
VRS / VSS/ STEP scheme for the employees. Most of the employees
utilised the scheme and taken advantage of it. But the employees those who
are on the roll now have not utilised the said benefit. If they would have
opted for any one of the said schemes then there may not be mental agony
etc.

H) LACK OF PROVISIONS FOR RATION SHOPS:

The Company was maintaining four rations depots in each Mine /
Division in which the food grains were supplied to the employees at a
nominal rate on credit basis. After the closure the system was handed over
to the State Government which is making arrangements to supply the food
grains under public distribution system.

I) EFFORTS TO EARN ONE'S LIVELIHOOD :

No comments.

I

- 4 :r

J) THE DENIAL OF EDUCATION
There were aided schools in thamidst, of labour colonies maintained
by the BGML.
Sincethese
theseschools
schools^reJnof Tamil medium and number of
• Since
private English medium / KannadaImedium schools: were opened, the
students strength of the Tamil mediunji schools which •were maintained by
BGML has gone down. Since these sjchools 1were grant in aid schools the
State Government has ordered to close these schools.
------ Even now also the
English medium school comes under 4GML is istill existing which provides
eoucation to the children of employees ? ex-employees free of cost.

K) BROKEN MARRIAGES AND ENGAGEMENTS :
The salaries of the BGML employees was fixed by the Central
Government and revised time to time. f But due to the reason the company
become economically unyiable the wa£e revision of the BGML employees
has not been considered for a decade, i

L) EXPLOITATION OF MONEY. LEADERS :
No comments;
M) MEDIA - MISREPRESENTATION1:

No comments.
N) DISCRIMINATION - AS DALITS
In BGML most of the employees,are belongs to SC / ST communities
and Tamil speaking people. However,' the government has to take care of
the welfare of these employees / people.,
O) THE KARNATAKA
OCTOBER, 2002:

GOVERNMENT'S

ORDER

DATED

29"'

'II '

No comments.
Yours faithfully,
for BHARAT GOLD MINES LIMl’l ED,


MANAGING DIRECTOR.
iI.

.

Kolar Gold Fields , KGF - A Colonial Mining Settlement near Bangalore

Page 1 of 5
Com

Kolar Gold Fields or K.G.F.
First, Greetings for the New Year 2004 to all you readers. I came across a very interesting book
that had some info on KGF, so I decided to pinch with apologies to the author and share notes
with you all. Sad, till date have not received any old photographs of KGF to add to this page.
’’Tips for Tourists, Extracts from: A Guide to Bangalore and Mysore Directory, 1905. Compiled
and Published by J.W. Morris”
The Kolar Gold Fields ... these are to the south of the Bowringpet Taluq, to the east of a low ridge
of hills of which the Betarayan Hill, 3199 feet above sea level is the most conspicuous point. They
are connected by the Gold Fields Railway with the Bangalore-Madras line at Bowringpet, and a
road runs through them from Bowringpet to Kamasandra, where there is also a railway station.
There is no Hotel at Oorgaum now (1905). The origin of the Kolar Gold Fields is recorded in Rice
Gazetteer as follows :-" In that yeaM 87XMr. M.F. Lavelle, a resident in Bangalore, retired from
the army, with some knowledge of geology, applied to the Government for the exclusive privilege
of mining in the Kolar District, his thoughts being principally directed to the possibility of finding
coal. His request was granted on certain terms.. On these conditions, Mr. Lavelle commenced
operations by sinking a shaft in 1875, near Oorgaum. But finding that large capital would be
required for carrying out the work, he next year, with the approval of Government, transferred all
his rights and concessions to Colonel Beresford. This officer, with some friends amoung racing
men, formed a syndicate known as the Kolar Concessionaires, whotook up the matter in earnest...
By 1881 the Concessionaires had secured the valuable aid of Messrs. John Taylor & Sons, a firm
of mining Engineers in London. A general rush was then made for gold. ... Up to 1891, about
ninety seven square miles in all had been leased out for gold mining, the land being situated in
every district except Bangalore. ... In what was a desolate waste, a large flourshing town has
sprung up, provided with most of the conveniences and institutions of European life. A branch
railway on the standard guage, 10 miles in length, was opened in 1893, running from the
Bowringpet junction to the Bangalore line through most of the principal mining properties, and
has proved an immense convenience and success. The principal commodity carried by it is coal, to
which may be added timber and machinery."
The population rose from 7085 in 1891 to 37964 in 1901!! Recent discoveries (1905) have
disclosed that the lodes have a tendency to run in a direction towards the Dharwar Gold Mines,
which presumably form part of the same geological formation, and as far as can be calculated the
mines are capable of yielding gold in average quantities for many years to come.
The following were the principal Mines in the Gold Fields in 1905:The Mysore Gold Mine
Champion Reef Mine
Ooregum Mine
Nundydroog Mine
Tank Block Mine
Balaghat Mine
Gold Fields of Mysore
Coromandel Mine
Oriental Mine
Nine Reefs Mine
Road Block Mine
Mysore Reefs Gold Mines Coy
Until the year 1902 all the machinery in the Mines was worked by steam power, but in August
1902 the completion of the Cauvery Power Works, brough about a complete revolution in the
working of most of the Mines on the Fields, whereby 4000 H.P. of electric energy is transmitted to
the Gold Fields from the Cauvery Falls Power Station received at an elaborate Transformer House
http://www.geocities.com/kolargoldfield/

10/7/04

Kolar Gold Fields , KGF - A Colonial Mining Settlement near Bangalore

Page 2 of 5

centrally situated and distributed to the various mines in quantities contracted for and by the
mneans of this electric power the majority of the mines work their milling and stamping
machinery.
The Kolar Gold Field water Supply Scheme was completed in 1901-1902. The water was drawn
from the Bettamangala and Ramasagram tanks. Rotertsonpet suburb was established around 1901,
and the name was given by the then H.H. the Maharaja in commemoration of the memory of Sir
Donald Robertson, KCSI, late Resident in Mysore, on 15th August 1903. In the same year Kolar
Gold Fields established a Corps known as the Kolar Gold Fields Volunteers, and earlier part of
the Bangalore Rifle Volunteers . The Corps had its Head Quarters at Oorgaum.
In Oorgaum, there was a Kolar Gold Field Club and Kolar Gold Fields Library in a building called
Oorgaum Hall. In 1905, S.M. Pritchard (the Clubs Hon. Secy), H.H. Osborn (H. Treasurer), with
R.R. Rodda. G.H. Burnell (Secy & Librarian), Committee members P. Bosworth-Smith, H.M.A.
Cooke, Rev. L.G. Pollard.
Some of the schools that existed then were Kolar Gold Field School, Nundydoog Mines (1901),
St. Joseph's Convent Girl's School (Order of St. Joseph of Tarbes), Champion Reef, St. Thomas
School.
One of the bigger public instutions was The Kolar Gold Field Gymkhana Club, which hosted a
Polo, Golf and Hockey team.
Churches:
St. Paul's Church (S.P.G. COE), which was shared with a Tamil congregation, the services at
different times.
Wesleyan Mission, English and Tamil congregations.
St. Thomas' School Chapel (National Church of India)
Lutheran Mission, Tamil congregation at Robertsonpet
Roman Catholic Churches, Our Lady of Victories (Champion Reef), which also covered St.
Mary's Anglo-Vernacular School.
St. Sebastion (Coromandal)
Entertainment was provided by the Kolar Gold Fields Choral and Dramatic Society, and for the
souls of many, the Royal Army Temperance Association was available.
THERE IS NEW SITE ON KGF AT www.kgfpnline.com please check it out.
.... Some Notes ... KOLAR GOLD FIELDS. (KARNATAKA) This little mining town, about 22
kms, east of Bangalore, was once the pride of the erstwhile Mysore state, and also that of India.
This gold mine produced a sizeable amount of gold during the days of the British Raj. It employed
nationals from Britain, Italy, Germany and also a good number of Angto -Indians. The entire
labour force in those days, were the Tamils from the neighbouring state of Tamil Nadu, who were
the best preferred for their honesty, ability to work hard and with no ties to labour unions..
As the years rolled by, and the gold reserves diminished, coupled with the freedom struggle, the
Expatriates began to leave the mines, though the British, who owned the mines still, held on to
key positions. Anglo-indians were the next favoured kind and they took over many Administrative
& , Managerial posts. Meanwhile the school of mines which was then started began to produce
some good Indian Miners & Engineers, who were soon absorbed into Managerial levels on the
mines.

By this time the Central Government took over the Mines from the British
and later handed over the Mines to the State Government. Gold reserves
dwindled and the once prosperous Gold Mine showed signs of decline.
Emigration was now in the air and the Anglo-indians were leaving India to
greener pastures in large numbers. Some to U.K., some to Canada, Australia,
New Zealand and even to some countries in Europe. The skilled personal left j
to the Gold Mines in Ghana, West Africa.
j

http://www.geocities.com/kolargoldfield/

i 1 1

10/7/04

Kolar Gold Fields , KGF - A Colonial Mining Settlement near Bangalore

Page 3 of 5

■■Mi

Talking of Kolar Gold Fields brings back old memories of the social life
M^VALEHTINE
there, in those days. With four or five Clubs with facilities for Tennis,
Billiards & Snooker (skittles on Sundays) and even a separate Golf Club, life
was something very did@rent. The frequent Dances and social functions were something to be
witnessed to believe. Come December, the whole place will be humming with activity. Dances,
Christmas Trees, Gifts for children in all these Clubs, were the highlights of this festive season.
Many from Bangalore would also come to these Dances at Kolar Gold Fields.

Well Kolar Gold Fields is no longer the same, economically and socially. The posh Bungalows
have been divided and sub-divided to accommodate more familes. The glass panes in the
windows have been replaced by plywood when broken and the walls have not seen paint for quiet
awhile. The then renowned KGF Club, which once was out of bounds for the Indians, is failing to
bits The brass door handles, knobs and hinges have all gone. The highly polished floorboards have
not seen wax for a few decades. The sterling silver cutlery which were specially ordered fcom 'the
U. K for the Club's Restaurant with the emblem of the Club on it have all disappeared. There is
not even cold beer on a summers Sunday morning to quench ones thirst.
It is sad but that is an end of an era.

This writeup above is by Mr. Valentine. He is a member of the Institute of Engineers and also a
member of the Institute of Engineering Designers of U.K He started his career as a draftsman in
KG. F in 1960. He went to Ghana in West Africa in 1974 and was later promoted as senior Design
Engineer in the Gold Mines of Ashanti After 12 years abroad he has settled in Bangalore, India,
and is now working in a Design & Drafting Section of an Engineering Project Management Firm,
as a Manager.
Update on K.G.F. ( Kolar Gold Fields ) January 1st, 2003!!.
Here's wishing you all a Happy New Year 2003. This is Jan 1st, 2003, and I am just back
from K.G.F.. Yes, I actually made it there for the New Year's Dance. I must say that I
enjoyed myself. I congratulate the organizers for the excellent effort in the event. I was a
bit sore as I missed about 2 hours of the dance due to a traffic jam on the BangaloreMadras highway. We came in a group from Bangalore Sally & Reubin Fernandes
(Saudi), Nimi & Faustin Fernandes (Canada), Lyn (Madras), Leslie & Althea and kids
(Bombay), and of course yours truly Ronnie & Maisy (Bangalore).

After a journey of over 4 hours that should have been actually 2 hours I gathered myself
and took in the surroundings of the 'Skating Rink', my first impression was that of a
'Country & Western Barn Dance' and a very 'rustic' atmosphere, with corrugated roof,
and tatty (cane) ceilings, propped by a large wooden door, and a stage to match. I have
never been in surroundings like this, one sees it only in the movies. We came in 2 cars
and unfolded ourselves, not really running for the tickets because we purchased them in
advance through Ingrid and Maurice Rosario (thanks to them, check out Barn door in
background!), whose son was playing in "The Last Resort" band. More about the band
later.
When I stepped into the hall or should I say 'Barn!!', I was amazed to find such a lovely
collection of lovely ladies and gents around the corridors. (I have taken pictures of the
dance, lets hope it will come out as my camera has a problem of too little flash and
some leaking light, and above all lets hope that the darn film was loaded properly!!
Sorry, camera did not live up to my expectations, I am sure many took pictures, but how
to get their results is a miracle!!).

http://www.geocities.com/kolargoldfield/

10/7/04

Kolar Gold Fields , KGF - A Colonial Mining Settlement near Bangalore

Page 4 of 5

The people seemed to look very friendly, but since we did not know anyone besides the
Rosarios, I guess it's professional observance that is expected. Perhaps if I do venture
and meet some more people, then people may smile and perhaps say 'Hello' to us
strangers from Bangalore, who are visiting KGF for the first time!!
Interestingly the scene of 100% Anglo-Indians in attendance, reminded me of the 'good
old days' of Bangalore's 'Richmond Institute', 'Bowring Institute' and 'Catholic Club'
functions. There was a 'King & Queen 2003' parade ... married and unmarried entries
were accepted!! [ 2003 Queen line up, 2003 Queen more line up, 2003 Queen floor
walk, 20Q3 Queen still more line up, 2003 Queen, you can never be too old or too
young! ], and the couple were selected by a panel of 3 judges and I think the result was
ideal for a 'Grasim' ad?. There was also the 'cats-eye' masks that is a traditional
commodity amoung Al's. (I am curious why people did not get on the floor at Midnight
wearing the masks, instead all were 'seated' at their tables?, while the old man went
around with trumpet and drum band, and the New Year fairy was on the stage, too far to
be really seen, giving her message for 2003, somebody should have taken her on a
round to show how pretty she looked. Wonder if there is a reason for these traditions?
[ Breaking in the New Year circle, Dancing 2003, Reubin and Sally Fernandez (my
sponsors for this dance!!), Peck couple, somebody else I knew from Bangalore, what a
relief!!, Ronnie & Maisy, first dance for 2003, I'm sure it wont be our last at KGFll,
Warmed up after 2003, the larger circles, The action just begining after 3am!!, Couples
filling the floor, ]

The Band, The Last Resort, played excellent ball room dance music, and sang well. I
guess they catered to the crowd, perhaps they should have had a session of Rock &
Roll for the younger generation, or maybe some recorded music between breaks. The
band played all night and were playing till 4 a.m. when we left back to Bangalore
(puncture to make it still more eventful!!). Quite a strain on the boys.
My wife Maisy's relations (a 3-day-old married couple, expectedly landed around 2
a.m.l!) Karen and Gibson won a prize for an elimination dance.

I asked Maurice to introduce me to some people around and I met Mr. D.J. King, Dr.
G.W. Dias and Mr. R. Simento (I know his uncle in Brisbane, Australia ). I spoke to Dr.
Dias about this web page and he welcomed the idea of putting the notice about a Fund
for the Anglo-Indians in K.G.F., which you can find below.
Cheers, I an surely keen to come again for another show at K.G.F, but provided I can
organize some transport, it's too far to come by bike (sorry, I don't own a car, only my
rich relatives do!!)
Ronnie
The Anglo Indian Achievers of Kolar Gold Fields

The Melbourne Medical Fund
(For Needy A.i.'s of K.G.F. only.)

Welcome
The Executive committee takes great pleasure in inviting Members of the Community in
K.G.F. and from Bangalore to attend the Sixth Anniversary of the functioning of the
above fund.
Date: January 11th, 2003 ; Place: Skating Rink, Nundydroog; Time: 8-00 p.m.
The Leading Band of K.G.F. "The Last Resort" will be there to keep you entertained
http://www.geocities.com/kolargoldfield/

10/7/04

rediff.com Business News: Why a gold mine failed to rake in megabucks

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Why a gold mine failed to rake in megabucks

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B KSarkar in New Delhi
to a friend

Faulty decisions by the government and its lax attitude towards
implementing reports by committees to suggest ways on improving
health led to Bharat Gold Mines Limited becoming a sick public sector
undertaking, according to sources.

The Karnataka-based company engaged in the production of gold, and
silver and zinc as byproducts, was not allowed to dispose of its gold at
the prevailing domestic market prices. Nor did the government offer it
the London Metal Exchange price, they point out.
The entire gold product of BGML was supposed to go to the Reserve
Bank of India, which in turn would pay the PSU the controlled price of
the bullion. This used to be several times lower than the domestic
market price as well as the prevailing LME price, eventually making
the company sick by early '90s.

At this, BMGL was referred to the Board for Industrial and Financial
Reconstruction for revival.
The subsequent years saw the government setting up as many as three
parliamentary committees to suggest ways to better its condition. Also
set up were two committees headed by former secretaries and three
others by the Industrial Credit and Investment Corporation of India —
in 1994, 1996 and 1997.

All these committees, while concluding that the company was viable,
suggested that BGML should undertake gold exploration, intensify
diversification, be provided with subsidised power by the government
and that its royalty should be waived, capacity utilisation enhanced
and workshops modernised.

The reports also suggested phasing out of exhausted and uneconomical
mines and asked the government to permit the company to sell its
products in the open market.
The government implemented the phasing-out of exhausted and
uneconomical mines but took no action on the other recommendations.
The sources said that what went almost incorrigibly wrong with the
firm was as a fallout of a 1989 government decision to sell its product
in the open market.

Apart from this, the central government never approved exploration of
gold beyond a seven to eight kilometre stretch of length out of a total

http://www.rediff.eom/business/2000/mar/08gold.htm

10/7/04

rediff.com Business News: Why a gold mine failed to rake in megabucks

Page 2 of 2

strike length of 80 kilometre and width of two to six kilometres.

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10/7/04

KOLAR GOLD FIELDS PEOPLES MOVEMENT
AGAINST CLOSURE OF
BHARAT GOLD MINES LIMITED
CAMPAIGN IN DELHI
DATE: 1-5 SEPTEMBER 2000

DETAILS OF THE PROGRAMME:
1ST SEPTEMBER 2000 3 P.M. PRESS CONFERENCE VENUE:
VAYANJAN, MAVALANKAR HALL
RAH MARG, NEW DELHI
_________
' 11 A.M, TILL 1 P.M.
2ND SEPTEMBER
RALLY OF THE KGF PEOPLES MOVEMENT
WITH DELHI BASED ORGANISATIONS AT
JEWELLERS STREET.
GATHER AT THE TRIANGULAR PARK,
DELHI GATE AT 10.30 AJvf.
_________
2.30 P.M, TO 6 P.M. DHARNA NEAR
JANTAR MANTAR
_______________
3RD SEPTEMBER
9.30 A.M. TO 6 P.M.
DHARNA NEAR JANTAR MANTAR_______
4TH SEPTEMBER
11 A.M.
RALLY FROM MANDI HOUSE TO
PARLIAMENT STREET (PEOPLE GATHER
AT MANDI HOUSE CIRCLE AND THE
RALLY BEGINS AT 11 AJ4.)_____________
1 P.M. TILL EVENING
DHARNA NEAR JANTAR MANTAR_______
5 SEPTEMBER
10 AM. TILL EVENING -DHARNANEAR
JANTAR MANTAR
KINDLYNOTE:
THE REPRESENTATIVES OF KGF PEOPLE WILL BE STAYING AT THE HINDU
MAHASABHA, BIRLA MANDIR ROAD FROM 1ST TO 6TH SEPTEMBER.

DELHI CONTACT ADDRESS:
K-14, GREEN PARK EXTN.
NEW DELHI 110 016
TEL: 6163830/6196640

C_c£>*^ Y~|

BGML School Issue
Strictly Confidential

Steps Against Privatization
1. October 2001 - Spandhana Program - AIR interviewed
Mr.Malathesa the school teacher and broadcasted it
(The teacher is keeping the audiocassette of it)
2. He contacted many ministers and political leaders of
the Karnataka government pleading for taking over the
schools.
3. January 2001 Parents signature campaign
recommending the state government to take over the
schools and not to privatize them.
4. Students procession - 23 Jan 2001
5. 24 Jan 2002 KPM publishes a pamphlet against the
privatization moves of the management of the schools.
6. 24 Jan 2002 parents gheroed the HM's office
7. The HM & other board members threatened student
leaders.
8. A petition was submitted my Mr.Malathesha to the 5
members ministerial delegation that visited KGF on 7
July 2001, recommending the state government to take
over the schools

Some Info
1. BGML educational institution has 9 schools.
2. Three categories are there: Private, Mining & non­
mining.
3. English medium, Tamil medium & Telugu medium
4. Nearly 1600 students are studying - 90 per cent S.C &
S.T, mostly poor families of mining community.
5. The former M.D of BC3ML Company & the present MLA
of KGF have recommended the state government to
take over the schools.

■ 'V &

6. The present acting MD, Mr.Sampath Kumar is
allegedly attempting to privatize the schools be-way
selling them to some private Marvari parities at a throw
away price
7. There are other local persons are also in the list who
have applied for buying the schools. One Mr.Deva
Anbu who has married the sister of acting MD,
Mr.Sampath Kumar, is the President of the Borad of
the school committee.
^ameaaMHe younger sistec^of Ibexpr^seot'actiing MD,
M^Sarob^thiKUma^. Mrs. Deva Anbu has hence,
hopefully applied for taking over the schools.
Mr.K.Rajenndiran, local Janata Dal leader and
Mr.Noorj,owner of some educational institutes are
some other important persons waiting for the hunt.
8. The management has, already targeted
Mr.Malathesha. Yet he is strong in his conviction to
fight against privatization and has very good rapport
with the student community.
9. Most of the other teachers are very much timid and
silent over the issue but have sympathy over the
struggle against privatization.
10. KPM, DSS, MJ are the progressive movements that
can mobilize the people and campaign against the
privatization move.

1

Assistant RegistraiYLAW)
Tel. No.: 011-336 1611, 336 1671
Fax No.: 011 -336 6537,334 0016
Telegraphic Add.: "HUMANRIGHTS"
Home Page : http://nhrc.nic.in *

Case No. 23/10/2C04-2C05/OC

NATIONAL HUMAN RIGHTS COMMISSION
( LAWDIVISION)
SARDAR PATEL BHAV.AN
S/\NSAD MARG, NEW DELHI - 110 CO 1

Dated 18/05/2094

-7

To
THE SECRETARY
■' GOVT. OF KARNATAKA, BANGALORE

?.rn/

Sub: Complaint from

R. MAHOILAR
ANJANAPRA COMPLEX, 35 HENNUR MAIN ROAD,
ST. THOMAS TWON
BANGALORE, KARNATAKA.

Sir,

The complaint dated 10/03/2004, was placed before the Commission on 13/05/2004 . Upon
perusing the complaint, the Commission directed as follows.

The complaint be transmitted to the concerned authority for such action as is deemed
appropriate. Action taken report be sent to the Commission in six weeks.
Accordingly, I am forwarding herewith a copy of the complaint for taking appropriate action in
the matter as per the directions of the Commission It is requested that an Action Taken Report be sent to
the Commission within 6 weeks from the date of receipt of this letter.

Yours faithfully,

REGISTRAR (LAW)
ASSISTANT

Ends: As above
CC to:
The Home Secretary
GOVT.OF KARNATAKA, BANGALORE
& MAHOHAR
ANJANAPPA COMPLEX, 35 HENNUR MAIN ROAD, ST.
THOMAS TWON
\\
B ANG ALORE, K AR N Al’AK A

-A

ASSi5Tr\NTREG<STRARa.AW'i
\

Coaa H- 35:20

KGF PEOPLES MOVEMENT

PRESS STATEMENT
The Emergence of KPM
The emergence of KPM, a secular democratic movement was a spontaneous
agitation of the marginalized section of KGF against the pro-globalization
policy and proposal of the governments to close down BGML, a public
sector in the 90s creating a false impression as a sick company.
The Underlying Issue
Right at the outset KPM initiated a study with the support of National Level
Sohdarity Group to analyze the situation of BGML and presented an
alternative proposal for the revival, which challenged the claims of the
management and blasted its false propaganda.
But as a peoples movement
it lacked locus standi to represent the workers cause. The trade union took
up the issue but met with failure because of lack of unity and coordination
among them.

Wherever and whenever KGF is highlighted either in media or otherwise, it
is usually taken for granted that the whole issue is only of the BGML.

BUT THE REAL AND UNDERLYING ISSUE IS MUCH MORE
SOCIAL, ECONOMIC, CULTURAL AND ENVIRONMENTAL THAN A
MERE MANAGEMENT-WORKERS ISSUE. Because the consequences
of the SGML's decisions are so bitter and dehumanizing that the very basic
fundamental rights of the people have been blatantly violated.
It is the duty of the company to provide all basic needs such as drinking
water, medical care, education for children, electricity to the workers and
their families. But here in the case of BGML, there is a gross violation of
basic human rights. BECAUSE THE BGML MANAGEMENT HAS CUT
OFF ALL THESE BASIC FACILITIES WHICH WERE AVAILABLE TO
THE PEOPLE WITHOUT ANY FINAL DECISION WITH REGARD TO
BGML.

KPM categorically condemns this undemocratic and atrocious management
of BGML destroying the very basic ethics of public sector. Hence we
appeal to the Press to draw attention of the whole nation to this downright
constitutional violation:
1. Right to life Article 21
2. Equality before Law Article 14
3. Discrimination on the basis of caste Article 15 (More than 90 per
cent of the workers are Dalits)
Focusing these fundamental rights of the people KPM has been organizing
several struggles and campaigns demanding both the central and state
governments to do justice to the victimized people of KGF. In spite of
various struggles of KPM at state and national levels, the governments
coolly maintained their indifference, which provoked the KPM to declare a
massive signature campaign and a Pada Yatra to Bangalore by passing a
resolution in the General Body meeting held on the 26th January 2002, the
Republic Day of India. Ms Medha Patkar, NBA, has strengthened the
agitation of KPM against the injustice done to the people of KGF by her
solidarity visit here to KGF this morning, i.e., 19 April 2002.

Pada Yatra
Closure of Gold Mines and continuous negligence of this border area by the
state and central governments resulted in underdevelopment, environmental
degradation, unemployment, impoverishment, violation of human rights, and
so on.
KPM, in order to highlight the plight of the people and the area, organizes a
Long March in which 500 people -men & women - walk more than 100 km,
in five days covering hundreds of villages carrying one lakh signatures and
meet the Chief Minister to demand for immediate action.

1. 500 people both women & men are to participate.
2. It starts on the 21st at KGF and reaches Bangalore on 25th April 2002.
3. Yatra covers hundreds of villages.
4. More than 5000 people in Bangalore belonging to various
Organizations and movements are joining the rally in Bangalore in
support of it.

2

Appeal to the press
We KPM, earnestly appeal to our friends of Print & other media to,
- Bring to the limelight the hidden and unspoken violations of
fundamental rights of the people of KGF and specially the Dalits of
KGF.
- Highlight the plight of the victimized mining workers and their
families.
- Illustrate the nation that this border area is continuously neglected by
both state and central governments since independence.
- Inform the decision makers that the environment and ecology of this
fragile zone is the only resource for the future generation of the people
here. Which needs proper management and development.
- Recommend the governments to provide alternate development
packages for this area.

The KGF and its people in general and the mining community in particular
have been the target of multi dimensional attack by anti-people policies of
the governments, backed by the vested interest groups. We resolve to fight
this violation of human rights, tooth and nail. Let us join hands!

3

IM

til o'if

K.G.F. PEOPLES MOVEMENT
(KRISHNAPURAM, PEDDAPALLI (P.O ) KOLAR GOLD FIELDS - 563 121)

This appeal is respectfully submitted by the undersignedI on behalf of KPM, in the interest of
and present workers of Bharat Gold Mines
the people of Kolar Gold Field City, ex-<employees
. .
Limited.

Since independance there have been no any visible development in KGF. Adding to this, the

Gold Mines Company is at the verge of closure-

A densely Dalit populated and having a high

literacy rate, the city is now marred with poverty, unemployment and lack of basic welfare

measures.
The people of KGF appeal to the Prime Minister of India/Chief Minister of Karnataka State to
take all possible steps to save KGF, develop it into an industrial area and protect the rights &

Our demands are :—'

Livelihood of the people.

*

Provide Pattas for the house sites to all ex-employees and present workers of
BGML Company.

*

Take all possible efforts to make KGF as an industrial city by way of declaring
it Tax-free city, bringing in Hi-tech industrial complexes, etc.

*

Make KGF a seperate Taluk.

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assort 'aoa^ sddtaS « ^5f.

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2.

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4.

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5.

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6.

7.

8.
9.
10
11,

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13.
14.

15-

16.
17.
18.

19.

20.

Signature

Name & Address

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----------------

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CV

TOWARDS GREEN AND SAFE KGF,
ISSUE No,

I

JUNE 2003..

A small township spotted with lush green gardens, stretching avenues of huge canopy
roads, flowing purified water, lovely surroundings, pet named. 'Little
woods, curling
<
That
was
our 'once-upon-a-time' KGF. That splendor has become a tale of the
England',
forgotten past! The present condition of KGF? Needs no words!
The misery ushered in by the ‘closure-decision' of the mining company and the other
connected sufferings and dismal state of sanitary, water supply, medical facility, etc are real
drastic things, but. anyway, lej us hope that the management, ministry, leaders and the
judiciary bring justice to the people and the industry.

We beseech your attention to some'other invisible but ongoing danger, which is growing
day by day under our very foot. Think of the consecutive droughts, water scarcity, our air
polluted with cyanide dust, drying up lands, stinking environment and the start of
desertification. Our underground water is polluted with fluoride, nitrate & heavy metals!
Do we really think of this bulging evil? Millions of invisible micro organism in the soil,
plants, butterflies, trees, animals, human beings, ground water-all these things are mutually
depending upon each other for their sustained survival. If any one is endangered in this
'Chain of Natnra'
Nature' than
then the whole chain is affected. Now the Chain of Nature in KGF is

totally endangered.

Our underground water table is depleting drastically. Earth is our
mother. Unless we feed the stomach of our mother, how can we expect secretion
of milk in her? Only blood will ooze^out.
Yes, we continuously suck the blood of
mother earth, while we fail to feed her. This is what happened for hundreds
of years. In order to mine out gold we sucked out water. And each and every
drop of rainwater was not allowed to recharge the groundwater. Instead all the wa ter
was diverted somewhere - like Bethamangala and other lakes.
Now wa all suff er
without water. Think of future KGF - Can we imagine a ’desert KGF?.

' i us to realize that it is our duty to regain the lost glory and natural richness
It is high time for
Let
of our city, L~. us
. not assume that it is only the duty of the government. Let us join hands

•> this and volunteer towards saving our township. 'Only with this
and put our souls •into
idea and concept a group of socially conscious citizens of KGF have formed a forum called
'Thanneer'

Thanneer'

*

It is a people's fo'um having a long-term goal of recovering and sustaining the
natural resource of ouj place.
Transcending politics, caste, creed, religion, language, the team
safeguarding 'Humanism' and conserving 'Natural Resources'.

Some droplets

of

envisages

Thanneer

Taking necessary/ possible steps towards’Recharging'underground water table by way of

gVicestation, slope land development, rain water harvesting & water conservation.

Taking efforts to control air pollution.
Soil & water conservation efforts through awareness campaign against the use of plastic

bags and anti-environment and anti-human chemicals.

i

Taking al! possible steps to repair and regain the endangered natural ecosystems of KGF
to make the township a safer place.

People's Participation
Let us make this dream come true through our united efforts and active participation all
those who love nature and commit to enrich our nature and people likes come together
as droplets to form a mighty flowing stream action, to make KGF green and safe.

We bring this to the notice of all citizens and particularly those who were born, broughtup, educated here and employed here and elsewhere, so that we all consciously and actively

come forward and take this initiative to achieve the goal.
Together we come I
Together we work I
Together we Green KGF !

To ensure your participation and for sharing suggestions and resources please contact :

The Convenor,

'Thanneer1
C/o. .Sunanda,
Krishnapuram,
Peddapalli fPO)
Kolar Gold Fields
Karnataka - 563 121

Thanneer
People s Initiative for Natural Resources Conservatiio^
KGF

What about the bleeding earth?

ii

Can't we feel its

iii

What about natures

iv

Its our planets womb !

v

Micheal Jackson

wounds ?
worth ?

[Earths Song]

MASS PROTEST DHARNA AT BANGALORE
TO SAVE BGML AND DEMAND NEW ECONOMIC
PACKAGE TO KGF.
KGF is now just few months away from a watershed;

If unchecked to an end of a

glorious

past of Gold production and the opening of the flood gate to accentuate poverty, unemployment
and social turmoil.
The recommendation of the BIFR to windup BGML would spell disaster for the mining
workers and their families. Under such dispensation KGF has been reduced to the status of
marginalisation, a sense of powerlessness and a loss of identity as people lived here for more than
four generation.
Mining workers and the people of KGF have been facing a peculiar situation as the oppre­
ssive forces to windup the mines became hidden, unidentifiable, indirect and remote. The threat
ainst KGF working class became one of flight of gold, loss of jobs, economic stagnation and
punery, which again seems to be the results of uncontrollable and non-confrontable forces of the
State, which through their very pervasiveness acquire an appearence of natural forces.

The working class in KGF is broken up in to numerous

unions, therefore its strength and
bargaining power is done away with, the trade unions are also reduced to forums of petty power
politics and bickerings, its social and political weight declined and its ideaological elan is lost.
Any understanding of the problems of SGML must begin by taking into account the process
of Globalisation and New Economic policy which has no human face as claimed by the government

They are not only throwing crores of people out of their jobs, but also dangerously increasing the
dependency of Indian economy on foreign countries.

During the first two years of New Economic Policies, the number of sick industrial units has
increased from 3 lakh to 4 lakh and a large number of workers are being affected- Many of the
public sector units have been forced to sickness by the central government and the managers
appointed by it.

106 cases of public sector undertakings have been handed over to Board of Industrial and
ancial Reconstruction (BIFR).

Twelve decisions have been taken, out of which ten were

reco­

mmanded for closure of the units. The Government policies are such that handing over of a unit
to BIFR means its closure and auction. Nearly 7 lakh workers have already been thrown out
of their jobs from the initial such units handed over to BIFR. The same stories are expected for
about 40 more units
Out of an Indian population of 98 crores about 45 crores are in the age group

of

18—58

years out of which more than 13 crores are unemployed. Thus 25% of the
Indian working
force is unemployed and is not in a position to contribute in the economic growth of the country.
In a democratic country the development patterns and processes have to be explicitly
oriented to enabling every one to have adequate employment, afford atleast the minimum desirable
requirement of food* clothing and shelter, and have access to educational, health, child care and
• other related services. The concept of right to work is already there in the chapter on Directive
principles of state policy in the constitution of India. Though reference is usually made to
article 41 of the constitution, there are infact three articles namely article 39 relates to right to an
adequate means of livelyhood; article 41 relates to right to work and to public assistance; article
43 relates to right to work and to a living wage.

1

Inspite of these constitutional provitions the globalisation, liberalisation and

1

privalisation

have the import in harming the Indian industry and the work force is really having a time of

misfortune due to growing number of retrechments, lay offs, lockouts and closure of units. These
are against the spirit of the constitution and indefiance to the tenets of democracy.

The current crisis in BGML is not due to any immediate disastorous state of afairs but it
has the genesis in wrong government policies and mismanagement, which forced to the BGML

to the plight of sickness and eventual closure.

At the core of the mindless course

of action to

windup the mines, the central government and the local management have adopted a devious
strategy of total stoppage of mining operations and paying idle wages to BGML workers to
demoralise the work force and create panic among them. The cabinet decision and BIFR reco­
mmendations to windup BGML appear to be more indicative of the government's intention to

hand over

BGML

to a foreign company,

in consequence of that to

reduce the man power to

thousand and odd and expose nation's wealth for rapid plunder in a matter of few years.
That the wholly serious issue confranting Kolar Gold Fields is the vicious circle of unem­
ployment. Once Kolar Gold Mines employed more than 32,000 workers, now the work force has
been pathetically reduced to 4,000 who are on the brink of loosing their jobs. Kolar Gold Mines
has produced more than 800 metric tons of Gold (worth Rs. 45,000 crores). The mine workt
and their families and two lakh population of KGF, majority of them are Dalits, are entirely
depending on the mines for employment. Though government has done precious little to al Ii viate
unemployment in KGF.

So, it is to be born in mind KGF's survival will hinge on the revival of BGML without down
sizing the work force, in addition providing new package to create more employment opportunity
for the economic regeneration of KGF.
The State government is organising Karnataka Mining Conference at Bangalore on 3rd and
4th of August to open up the State's mineral resource for the private and multinational compa­
nies to exploit.

To voice the rights of the peopie of K.G.F.
a 'DHARMA' will be held on 3rd August at Bangalore
infront of Mahathma Gandhi Statue, M.G.Road at 10 am.
Our Demands :

n Immediate release of funds to resume mining operations in BGML.
2)

Allocate Rs. 100 Crores for the revival of BGML.

3)
4)

To

settle long standing wage revision of BGML workers.

Implamentation of new package to create more employment opportunities
in KGF.

We earnestly appeal to political parties, trade unions, progressive movements and like
minded individuals to participate in the 'dharna' to support the cause of the deprived and
neglected people of KGF.

K.G.F. PEOPLES
J. BACKIANATHAN, Advocate
Convenor
Prasad Babur

MOVEMENT
M RAJKUMAR

Secretary
Organising Committee :
R.V. Kumar,
Susairaj Babu,
G Bhaskar,
Debora,
Shanthi
Caroline,
Kamatchi Ammal,
Rani,
Chandra

BANGALORE SOLIDARITY
N. P. SWAMY Convenor
Kala Press, Andersonpet, KGF.

GROUP

..

MAMMOTH PROTEST RALLY
In support of Mining Workers of Kolar Gold Field
The Central Government has decided to close down the 400 year old

GOLD MINES at KGF
without any rehabilitation work or industry from 31st March, 2000.

Not only the British, very much the erstwhile Mysore State, the present
State & Central Governments down through the years have enjoyed
enormous financial benefits out of the sacrifice of workers & people of
KGF. From the inception till now 7,81,881 kgs of gold valued at
Rs. 40,000/- crores has been extracted from the Kolar Gold Mines.

This abrupt order to close down without any rehabilitation
shows the inhuman, anti-dalit & anti-labour stand of the
Central Government.

The grave consequences of the order :
• 4,200 employees - mostly dalits & minorities will be the
worst victims;
• 30,000 children & women of these families will loose
their livelihood;
• Nuclear waste will be dumped in the Mines;
• Eviction of Mining workers & the families;
• 1.5 lakh population of KGF will silently die down due to
the gross violation of human & labour rights by the
Central Government.
At this critical juncture, K.G.F. People's Movement
supported by Bangalore Solidarity group is organising a
Mammoth Protest Rally at Bangalore.
Date :
Venue :
Time :

Monday 20th March, 2000.
Shivajinagar Stadium to Hudson Circle Ground.
10.00 a.m.

Hence we appleal to the conscience of every citizen to lend
support by participating in the rally to obtain justice for
KGF mining workers for the State & Central Government.
DEMANDS of KGF People's Movement:
1. With-drew the retrograde decision to close down the mines.
2. Initiate immediately rehabilitative employment measures through new
3.
4.

industry - as it is the responsibility of the State & Central Government.
Allot the mining houses to the dwellers - and declare owners BGML
employees and ex-employees.
To make earnest efforts to resolve & finalise the WAGE RIVISION
pending since 1989.

Participate in the Rally
Champion the just cause of KGF Mining Workers
K.G.F. People's Movement
Printed at : St. Mary's I.S. Press, St. Mary's Town, Bangalore-84. Ph. : 5470369

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eath with the goldeifclaws d
nous tunnels that lead up to the;. ‘ . "We have a staff of 25 now in
borrowed from moneylenders to
deposits.’ /•
; :7'-the head office. The company
get by. Some have taken up me­
Their protests as well as effo- will be liquidated soon because
Kolar Gold Fields (Karnata­ nialjobs while a few live on the
rts to move Karnataka High. ■.
there are no chances of revival.
ka), April 18: The Old Turkey streets and beg.
lucKuumuo.uiuouy
UCIUU51- Court against the Centre’s ? ... .. We know that 38 people have
Buzzard that hovered over the
The
families, mostly belong!to close the mines have
■ died after the closure of the- .5 ’
..decision
------------------.
Grand Canyon in the classic ng to the Scheduled Castes and
increased tho
the znloo
misery.
”: A ’mines,
mines,but
butthey
theypassed
passedaway
awe; •'
western McKenna’s Gold would minorities, have been treated. :. ;■ only inorcapod
appear to have s’vooped down on with disdain by the central and • < number of workers'have died of1.- because of some ailment or
VornotoVo
owifo Honrpeci
fin TYialmitritinn
PF ”
nflth K11
Karnataka rrr.Trar-nrr.an+c
governments wrkirk
which :1- acute
depression,
malnutrition Sithp
the nth
other,
” CfiVR
says Sam
Sampath
Kumar,
this mining town. •
have not worked out alternative < and silicosis; a few have commit--<• the managing director of Bharat ;
The town, known as Little
employmentfor them. The gove- ted suicide. , •• • * ;'■Gold Mines. • England because of its glitter­
rnments have not considered thSchool dropouts are on the .•/•;
But Savari Doss, president of .
ing past and sprawling Euro­
at small-scale industries or hort- .‘ rise as children have been turn- A the Bharat Gold Mines Employepean bungalows built by the
iculture could thrive here with . ■*,. ed away for not paying fees. Jyot- • y es Union, counters this by prodBritish firm John Taylor and
;____ __ ; j.2~ ; ‘
ucingalistof 59 workers who
•s
Sons that operated the mines
____________
fphave died over.the last three:'
from 1880 to 1956, has fallen on
years. ■' • >
lean times. It is now marked by
I A*-. "These are deaths due to
silent shafts, tons of tailings and
! A* starvation and heart aftack cau- •
loads of grief.
— .
• ■ sed by acute depression. We
- The deathof 50-odd miners
hi, 38, Nagarathna and Vijaylak- • don’t have drinking water (i t
and the gradual disintegration
vast stretches of land (12,500
is bought from private vendors
of their families has provided
acres) available, millions of gal­ .shmi, both 41, are among a
number of widows struggling
,. at Rs 1.50 a pot) or proper
politicians a campaign issue—
lons of water stored in disused
to pay the fee for their children. • sanitation.;
each has accused the other of se­ jpines and continuous power
Nandidurg Tamil Higher ' - . . ■ •. "Every mqrning, cnildren of
tting up barriers against reha­
supply from a plant built for the
my colleagues cram into the
Primary School, which had 790
bilitation of the 3,000-odd min­
mines.
students in the 1970s, has 25 •
train and travel to Bangalore for
ers and their families.
The mines have spawned a
now.
, jobs that fetch Rs 1,000 a month.
The workers of Bharat Gold
gold flow of 800 tonnes over 120
The Centre cites statistics to \ -? We don’t want to see the death of
Mines Ltd live in penm y and
years, which would fetch Rs
justify its decision to shut down: the mines and want to continue
dismal conditions with the hope 45,000 crore now. These could
the mines: it says the accumulat-.h .because we have not tapped the
that the new government at the
yield about half a tonne every
ed loss is Rs 409 crore, with the ■ entire deposits. In the past, four
Centre will release their retire­
year for a little while yet because the gold veins are'not defun- . cost of extraction around four ti-. expert cornmittees have recomment funds. Each would get
mes higher than the market pri- - mended a package to revive the
about Rs 2 lakh, but will actually ct Nor are workers unwilling to
ce for 10 gm of gold. ‘
mines," he says.
receive little in hand as all have
tread the dark, damp and caver-

B.R. SRIKANTH

SHINING?

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Kolar Gold Mine Closure, Many Tamils Face hardship

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Kolar Gold Mine Closure, Many Tamils Face hardship
Topic started by Raveen (@ h66-59-174-253.gtconnect.net) on Tue Apr 23 12:11:30 .
All times in EST +10:30 for 1ST.

Habib Beary
BBC correspondent in Bangalore

Human rights activists and industrial workers in the southern Indian state of Karnataka have set
off on a protest march against the closure of one of India's oldest gold mines - the Kolar Gold
Fields.
Their year-long campaign has received a boost with leading environmental activist, Medha
Patekar, joining the movement.

The march will culminate in a rally in Bangalore on Thursday expected to be attended by about
5,000 workers in Bangalore, some 120 kilometres from the gold mines.
The protesters will then submit a memorandum to the local government signed by 100,000 people.
Low caste

The Kolar Gold Fields (KGF) township has a population of about 150,000 that is dependent on
the mines for their livelihood.

At least 800 tonnes of gold has been extracted from these mines over the last 100 years

Most of the workers are low caste Hindus or Dalits and speak Tamil.
On her first visit to the gold mining town early this week, Medha Patekar described the township
as dead and dry.

She called on the government to provide alternate industries to the area if it was unable to revive
the mines.
Medha Patekar said she was taking up the issue as it was symbolic of the anti-labour policies of

http://forumhub.com/tnhistory/3586.12.1 1.30.html

10/7/04

Kolar Gold Mine Closure, Many Tamils Face hardship

Page 2 of 5

the government.
Officials of Bharat Gold Mines Limited, the company that runs the 120-year-old mines, said they
were closed down last year after suffering losses close to $90m.

They also said there was an "unavailability of gold".
At least 800 tons of gold has been extracted from these mines over the past 100 years.

The KGF People's Movement that has organised the march says the company became a loss­
making unit mainly due to its failure to upgrade technology and due to poor management policies.

The closure of the mines has been challenged in the state's High Court by workers where the case
is still pending.
See also:

Responses:
• From: AShok (@ nat-52.laurelnetworks.com) on: Tue Apr 23 14:46:21

KGF was an awesome place. I was there till I was 8, we left KGF in 1987. My dad was
brought up there too. I visited KGF in 98 and it was a ghost town, man I wish something
can be done to revive that place. I agree there are a lot of people whose survival was/is
based on the mines. My dad was an industrial engineer there, he might know more about
what went down over there. I think there were a lot of mistakes done (from what my dad
told me), however that place was bound to close either today or tomorrow. It was just a
matter of time. I am goign to try to get my dad involved in this discussion to get more
insight into what he thinks.

• From: AShok (@ nat-52.laurelnetworks.com) on: Tue Apr 23 14:51:49

by the way chedk this site out
www.kgfonline.com

• From: Raveen (@ h66-59-174-253.gtconnect.net) on: Tue Apr 23 16:26:37

Link not working ?

• From: Ashok (@ nat-52.laurelnetworks.com) on: Tue Apr 23 16:28:19

how about now
http://www.kgfonline.com/

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10/7/04

Kolar Gold Mine Closure, Many Tamils Face hardship

Page 3 of 5

• From: Ashok (@ nat-52.laurelnetworks.com) on: Tue Apr 23 20:00:33

if any of you here are from KGF from before my time, ie before the 80s, I would like to
know more about it from that time. I have heard great stories from my dad and uncles,
however I am curious about what others think too. KGF is so close to my heart, that I am
very saddened taht it is on its way to closure. Would also like to know what life in KGF is
like these days. I have heard some horror stories, about crimes (ofcourse its natural,
considering all these poor people are now unemployed!!! truly sad though)
hopefully there are some people from KGF in this forum

• From: Ashok (@ nat-52.laurelnetworks.com) on: Mon Apr 29 10:01:04

as promised here is my dads analysis of the situation..

It is really a pity - Mining by very nature cannot last long . It has a
definite end date. Whether this could end today or tomorrow can be a
matter of discussion . ultimately it is economics which determines
When we think of economics, the following were the causes

International price for gold was coming down

The electicity charges imposed by the Mysore governament was increased and
made on par with the rest of the consumers in the state. KGF was having a
concessional rate since they were getting 25 cycles supply from almost 80
year old power station which was not supplying to any one else.
The KGF always got the international price though internal market price was
much higher. All their accumulated loss was due to this . Just imagien we
introduced globalisation selectively to thsia iling Industry employing
socially and economically weaker section of the society

The managment lived in luxury and their wages were contoleed as per
Central Govt wages where as the workers wages were based on bargainign and
based on historically lower wages continuing from colonial days.
The productivity of labour was poor . LAbour indiscipline due to union
activcity and many welfare measures continued thopguh the paying power of
the industry dwindled. Labour unions were vying with one another tobleed
the industry and demands were such that the golden egg laying hen was cut
Unions and Management never coperated for reduction of manpower increase of
labour productivity. The management wanted al the luxuries of Peons, House
servants, personal assistants Secretaries, and army of helpers.
practically none worked by himself.
Well meaning CEO,s who tried to economise by restricting recruitment,

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10/7/04

Kolar Gold Mine Closure, Many Tamils Face hardship

Page 4 of 5

increasing effective hours of working, Rationalsiation of manpower,
reducing manpowers in housing maintenance , sanitation etc were propagated
as anti labour practices.
There was no proper exploration and I still feel that there amy be still
new ore bodies in the place .after 1985 the ceos unions were more
interested in clsoing downa ans selling the assets rather than exploring
the ways for continuing the operations.

it is a pity that a colony which is housing some 12000 employees and their
families is on road to ruins and soon KG F will become a ghost town or
has it already become

• From: siddharth (@ user-2iveaq8.dialup.mindspring.com) on: Mon Apr 29 13:19:36

KGF has been a losing proposition for several years. The Government tax payers have been
paying for the loses), The fault lies with the management and also labor. It has been the
experience all over the world that any industry or department run by the government will be
inefficient. China and Russia have moved away from it. In U.S. look at the post office and
defense department.Also the managers have been appointed not for their know how but
because of influence or bribery.
There are five laborers for something that one can do and most of them do not work. There
are hartals galore whenever anyone who does not work is punished. Govt, is trying to sell it
but who wants to buy a white elephant. So there are two options.
to close it and save the exchequer a ton of money or keep it open to please the labor and the
management. The budget will go on increasing due to waste. There will be a day when all
the revenue of Karnataka Government will go to this losing proposition and schools and
health clinics will have to close as a result. In Kerala and Madhya Pradesh the Public sector
companies were losing so much money that the salaries of Government employees could
not be paid. There were marches and hartals. Maybe that is a good result but it is the class 3
and 4 employees whose wages are witheld and not the ministers. I am for this second option
as there is a chance that the Govt, will be shut down and they will do less harm to the
public.
Medha Patkar is against building the dam but she is real quiet during the summer months
when the cattle and people die of drought, and she starts her agitation during rainy season.

• From: Ashok (@ nat-52.laurelnetworks.com) on: Mon Apr 29 13:25:25

haha
Exactly my opinion about medha patkar. She is a dud, and I think she is detrimental to
Indias growth. India needs to make some very drastic changes which might be bad at the
moment but good in the long run. People like medha patkar and arundhati roy, get their
noses into these long term developmental projects because they like to get their names into
newpapers. I guess it is free advertising for Arundhati roys next book.
Read what my dad wrote I think it is a good analysis of the situation in KGF

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10/7/04

Kolar Gold Mine Closure, Many Tamils Face hardship

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Kolar gold mine workers appeal to PM, seek longer lease
of life for mine
(k Send
Faced with imminent closure, workers of country's
this pa^e
oldest and deepest gold mine have appealed to Prime
to a friend
Minister Atal Bihari Vajpayee to intervene and allow the mine to
diversify its activities.

Bharat Gold Mines Limited, or BGML, which began its operations in
1880, now has grown into a city - Kolar Gold Fields, or KGF, with a
population of 200,000.
The KGF, locally known as Bangarapet (city ofgold) is being mined
in and around 50 km range.
The mine has also many firsts with Asia's first hydropower station
Shivanasamudra built in 1902 mainly to supply electricity for mining
operations.

The employees have been housed in the mine area with hospitals, and
various engineering, medical and dental colleges in its vicinity.
This colony has hardly seen any labour unrest, says V Venkatesh,
former Lok Sabha member from that area who is campaigning to
keeping the mines alive.
The Board for Industrial and Financial Reconstruction, or BIFR,
which considered the issue of closure had computed that the BGML
had sustained a loss of Rs 300 million because of the discriminatory
price policy adopted by the government.

"We request your good self to intervene and bring out the company
from the clutches of the BIFR," said the workers in their memorandum
to Vajpayee said.

The memorandum said the Nandidurg workshop in KGF was already
manufacturing railway wagons with a turnover of Rs 7 billion.
"Production of wagons or containers was neither complicated nor
tedious," the workers said.
The Champion Reef workshop, the workers said had all the facility to
develop itself as a wagon and coach service centre and it could be
converted into a workshop within a few months whose project report
was submitted to railways.
The workers said BGML had produced Rs 700 billion worth gold for
the country, but did not get good value for its produce because of
discriminatory price fixing by the government.

http://www.rediff.com/business/2000/apr/29gold.htm

10/7/04

rediff.com B...: Kolar gold mine workers appeal to PM, seek longer lease of life for min Page 2 of 2

Also, gold production received the least attention from the planners,
they said.

The company could sustain for at least another 50 years as there was
still scope for striking rich at untapped mines in the nearly 1,400-km
long tunnel, they said.

The workers delegation also made representations to several ruling
and opposition party leaders including Railway Minister Mamata
Banerjee and Petroleum Minister Ram Naik seeking their help for the
cause.
UNI
Peaceful protest marks death of a goldmine

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Peaceful protest marks death of a goldmine

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The millennium year has sounded a death knell for one of the oldest
goldmines in the world, with the siren ringing out for the last time in
the Kolar Gold Fields or KGF on Friday, about 100 kilometres from
Bangalore, the bustling capital of Karnataka.

On the day of reckoning, as the central government has finally decided
to abandon the 120-year-old mines for ever from April 1, mining
activities ground to a halt at Bharat Gold Mines Limited, a sick public
sector enterprise by evening even as the sun was setting.
In protest against the unilateral decision of the government to render
them jobless and putting their families to untold hardship thereby, the
remaining 4,300 employees had observed a total bandh (bandh =
protest marked by closure of commercial and other establishments) in
the township, which was peaceful.

According to KGF superintendent of police Malani Krishnamurthy, all
shops and commercial establishments downed their shutters earlier in
the day in response to the strike call given by the BGML employees.
Vehicular traffic in the town, which is home to over 150,000 people,
came to a halt.

Contrary to fears of trouble leading to a law and order problem, the
situation in the town was peaceful though tense. There were also no
reports of violence during the day-long bandh. The police were seen
patrolling and manning the entry and exit points of the mines.

Delivering a body-blow to the terrified employees, the Union
government had a month ago decided to bring the curtains down on
the goldmines as the state-owned company became unviable, what
with accumulated losses mounting to Rs 4 billion. The steep drop in
gold content at the mines had also added to the woes of the company,
making it all the more non-operational.

As a last resort, the workforce had belatedly sought the intervention of
the state government to save their jobs. State Industries Minister R V
Deshpande assured them recently that he would be taking up the issue
with the central government. Alas!
Ironically, it is for the first time in independent India that an entire
workforce of a public sector unit is retrenched at one go, of course,
with a golden handshake of Rs 200,000 for each of them as part of the
Voluntary Retirment Scheme or VRS.

http://www.rediff.eom/business/2000/mar/31 kolar.htm

10/7/04

rediff.com Business News: Peaceful protest marks death of a goldmine

Page 2 of 2

It is a small consolation that the total strength of the workers had
dropped to over 4,000 last year from over 10,000 a decade ago. Many
of the 'survivors' belong to the third or fourth generation of miners
several of whom succumbed to the deadly silicosis that afflicts those
who work in dusty mines.
KGF has a record of sorts besides the glitter that is associated with its
golden deposits. According to BGML statistical records, perhaps it is
the only mine the world over to have a 60km of shafts, connecting
about 1,320 kilometres of tunnels that criss-cross the mining area of
8.5 square kilometres.
Why a gold mine failed to rake in megabucks
Business

Karnataka

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10/7/04

1 ) Karnataka Maharashtra Goa;

Page 1 of 1

Strengthening strategies for the struggle groups and role ofmm&P
• Create a platform at the grassroots/local level on common issues
Build a pressure group at state, national and international level for advocacy and implementation of
policies and law
• Strengthen the documentation at grassroots, state, national and international level and develop
linkages between them. Information on new companies and projects.
• Networking with media professionals to ensure visibility of issues at various levels
• Legal interventions - going to court, give inputs on violations and possible violations of laws
• Capacity building on the legal aspects in the various stages of mining (pre, existing and post)
• Fxchange^1
aCCeSS'ble communication system for the network. Regular bulletin for information





Technical support and analysis
Strengthen our linkages with labour and trade unions
Action committee on different issues
Develop sharper focus related to Greenfield areas, existing and abandoned mining by creating space
within mm&P for networking amongst such groups.

http ://www. mmpindia. org/nc2001. htm

9/19/2004

Page 1 of 5

. Kolar

Go^ W

. 3&

National Institute of Communicable Diseases
Directorate General of Health Services
Ministry of Health and Family Welfare (GOI)
22, Sham Nath Marg, New Peihi-110 054
^Search]

r Home Y^Cnnr.icf tls^Discijssicrn Boady Char J

About NICD

KOLAR DI

About NSPCD

NICD Publications
Downloads

Investigation Reports

Fact Sheet
Training Programmes
Address Directory

Related Sites

What’s New?

Annual Tenders?

Kolar is popularly known as the golden land of India, for it is at the fa
Gold Fields of this district that gold mining was first undertaken duri
times. Formerly, Kolar was known variously as Kolahala, Kuvalala and K
Kolar district is located in the southern region of the State and happen
eastern-most district of the Karnataka State. The district is bound
districts of Bangalore and Tumkur on the west and on all other si(
districts of the adjoining States of Andhra Pradesh and Tamil Nadu. On t
is bounded by Anantapur district; on the east by Chittoor district
Pradesh and on the south by the districts of North Arcot and Dharrnapi
Nadu. The district, with an area of 8223 sq. kms., has its greatest lengt
135 km. from north to south with almost the same distance from east t<
district headquarters is located at Kolar.

Kolar
(Karnataka)

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Total population of the district according to 1991 census is 22,16,82
comprising of 11,28,316 males and 10,88,573 females. Rural popula
district is 16,99,906 persons (863585 males and 836321 females)
population is 5,16,983 persons (264731 males and 252252 females).

Area (sq. km)________________ 8223

Population (1991 census)______ 2.2 million
Density (per sq. km)__________ 269

Sex ratio (females/1000 males) 966

http://www.nicd.org/Kolar.asp

9/19/2004

Kolar

Page 2 of 5

[[Literacy rate (%)

||68.35

Main languages spoken in the district are Kannada. Hindi, Marathi, Ta
and Urdu.

The district occupies the table land of Mysore, bordering the eastern
general plateau surface is interrupted by a number of hills and peaks
heights, particularly in the north. The principal chain of mounta
Nandidurga range which runs north from Nandi towards Penul
Dharmavaram of Andhra Pradesh. The rivers of the district, are
seasonal. Palar, North Pinakini and South Pinakini are the important r
originate in the elevated regions in the district.

The district, at present comprises of 11 talukas. It has 15 towns and 3,2
(2889 inhabited villages and 432 uninhabited villages).
Table 1: Administrative Units in District
Adm. Units

No. Name______

Revenue division

1

Kolar_______

11

Bagepalli
Bangarapet
Chikbaliapur
Chintamani
Gauribidanur
Gudibanda
Kolar
Malur
Mulbagal
Sidlaghatta
Srinivaspur

Towns and Urban
Agglomerations having
12
population less than one
lakh

Bagepalli
Bangarapet
Chikbaliapur
Chinta-mani
Gauribidanur
Gudibanda
Kolar
Malur
Manchenahalli
Mulbagal
Sidlaghatta
Srinivaspur

Talukas

Number (with percentage) of villages having one or more amenities in
as per 1991 census is given below:

Table 2: Villages having one or more amenities in the district
Census)
SI. No. Amenities

http://www.nicd.org/Kolar.asp

Number of inhabited Villages Per

9/19/2004

Kolar

Page 3 of 5

k
2?
3?
4?
5?
6?
?7
8?

Education_____________

2238
Medical_______________ 100
Drinking Water________ 2889
Post and Telegraph_____ 391
Market / Hat__________ 82
Communications_______ 1732
Approach by Pucca Road 1461
Power Supply
2880

77.3j?
IOC
13?
2?8
59/
50?
99?i

Kolar district has a good network of roads. The district has railway com
facilities in an ample measure and the railway lines laid out, are of, a
types viz., broad-gauge, metre-gauge and narrow-gauge. There
waterways and airways in the district.
Agriculture is the backbone of the economy of the district. The net ar
the district is 30,6,477 hectares which accounted for 39.4 per cen
geographical area. Nearly 71 per cent of the total irrigated area is unde
by wells and the remaining area is under irrigation by tanks. The cultiv;
classified as dry (Kushki), wet (Tari) and garden [Bagayat). The first
lands are cultivated with crops such as ragi, jowar, pulses and millet
variety, usually having irrigational facilities of wells and tanks, is cult
crops like paddy, sugarcane, mulberry and Virginia tobacco. The garde
cultivated with coconuts, areca and betel-wine. Fruit crops such as mane
fruits and grapes are grown in almost all the taluks.

Livestock rearing has all along been an indispensable, complimentary
agriculture. Organic manure is still the chief fertiliser. Chemical fert
supplement the organic manures and these are used mostly in the irrig
The developDment of agriculture depends to a large extent on th
livestock.

More than 99 per cent of the gold produced in this country comes frorr
at Kolar Gold Fields. As early as the year 1885, the profitable extract
was undertaken by private companies. Apart from gold, silver is also f
the Kolar Gold Fields, on a small scale.

Industrially, Kolar district may be considered as well developed. Bharat
Ltd., and the Bharat Earth Movers Ltd., are the two major industrial este
in the disrtict and both are located in Kolar Gold Fields Urban Agglomera
The district is renowned for its sericulture industry. Silk, the queen
comes out of nature's laboratory, untouched by human hand. It i
biological industry and hence the quality depends upon the life conditioi
silkworms are subjected. In Kolar district, an area of 19000 hectare
mulberry cultivation.
Out of the 2,889 inhabited villages in the district as many as 1,921 he
one primary school each within their respective village limits. All the tc
district are having educational facilities up to high school level. In 13
towns of the district, there are facilities for studying in pre-university cl
Facilities for studying up to degree level exist in 7 towns. There i:

http://www.nicd.org/Kolar.asp

9/19/2004

Kolar

Page 4 of 5

polytechnic institute in the district and this is located in Chintamani. 1
place where the engineering colleges and the medical colleges are
Bangalore city.

According to 1991 census, total literates (excluding the population in the
of 0-6 years) is 2,85,280 persons. Of these, 158656 are males and :
females. In the rural areas of the district 229585 persons (128124
101461 females) are literates and in urban areas 55695 persons (30532
25163 females) are literates.
Medical facilities of one type or the other exist in all the 15 towns and
villages. In terms of proportion of villages enjoying medical facilities
taluk tops the list with 6.17 per cent while Bangarapet taluk (1.69 per
the last place. Chikballapur, Chintamani, Kolar and Kolar Gold Fields
than one hospital each. Kolar, the District Headquarter town has
number of medical institutions viz., two hospitals and three dispensa
Primary Health Centres or Primary Health Units are available in th<
Bagepalli, Gudibanda, ManchenaDhalli. Mulbagal, Sidlaghatta and S
Family Planning Centres are attached to these Primary Health Ce
Hospitals at Kolar have a total bed strength of 514 which means an avt
beds for every 10,000 of its population. The average number of beds in
the total population of the town is not quite meaningful as the hosp
towns serve the population of the town and also of the surrounding rui
the taluk. The district hospital at Kolar serves the population of the entir
Table 3: Govt, and Other Medical Institutions in Kolar disti

Medical institution No,
District hospital

2

Govt, hospital______ 6
Maternity Homes

6

Post-partum Centres 5
CHC

PHC

PHU

4
74~
36~

Sub-centers._______ 395

Medical college

1

Table 4: Health personnel working in Government sector in Kola

Name of the post________ Number
District medical officer

1
District immunization officer 1
District leprosy officer_____ 1
Medical Officer____________ 219
Health supervisors ________ 4
Health worker____________ 351
Laboratory technician
87

http://www.nicd.org/Kolar.asp

9/19/2004

Kolar

Page 5 of 5

The National Surveillance Programme for Communicable Diseases (N
launched in the district in the year 1997-98. District Nodal Officer
identified. District RRT has been constituted and trained. The training
Officers, Health Supervisors, Health Workers and Laboratory Technician
undertaken partially. District laboratory has been identified and upgrad
and monthly reports are being received by NICD. Table 5 shows the
members of RRT in Kolar district.
Table 5: Rapid Response Team of Kolar District

Tel, Fax Nos., Residence Addres:
E-mail
Tel, Fax Nos., E-m
address
address

Name, Designation and
address
[District Health Chief________
|Dr K R Putta Swamy, DH&FWO,

Tel: 22393;
22037
Fax: 22393

Tel: 22086

Tel: 24102

3rd Main, 3rd Cross,
P C Extension,
Kolar-563101
Tel: 24742

Dr. Baira Reddy, MD,
Physician,
Senior Specialist, SNR Hospital,
Kolar________________________

Tel:

SNR Hospital Quarte
Kolar

Dr. Krishnappa, MBBS, DCH
Paediatrician,
Senior Specialist, SNR Hospital,
Kolar______ _______________

Tel:

Dr. M A Murthy, MBBS, D Bact.,
Bacteriologist,
Senior Specialist, SNR Hospital,
Kolar________________________

Tel:

Dr. G Venkatesh
Statistician,
DH&FW Office,
Kolar_________________

Tel:

Dr F A Kaji, MBBS, DPH
Epidemiologist,

Tel:

Office of Distt. Health & FW
Officer, Kolar - 563101.

District Nodal Officer

~~

Dr. P S Krishnamurthy, MBBS,
MD(Path) Medical Officer,
District Laboratory,
Kolar________________________

District RRT - other Members

Doom Light Circle,
Kolar

Tel: 24812

The morbidity and mortality data reported by the district from
December 2000, and from January 2001 till date is shown in the tat
respectively.
See Cases/Deaths Reported For Kolar (Karnataka)

http://www.nicd.org/Kolar.asp

9/19/2004

»

Kolar Gold Fields belong to Tamil Nadu

Page 1 of .3

Kolar Gold Fields belong to Tamil Nadu
Kolar: Ancient Tamil Gold-Fields
The first and foremost reason as to why Kolar Gold Fields (KGF) belongs to Tamil Nadu
is historical. The presence of deep mining-pits dug by ancient miners and vast shafts
across the Kolar Schist Belt prove that mining activity started in this region long before
the formation of the Indian Union. The Roman historian Pliny who travelled through the
region in 77 AD wrote that there were very' productive mines at Kolar. A recent report in
Rcdiff further testified to the presence of ancient mines when 19th-ccntury travellers
visited the region :
” Few people know that gold mines existed in this area long before the
British arrived, Roman historian Pliny who passed through the region in
77 AD wrote of extensive gold and silver mines.

In the 1850s, an Irish soldier named Lavelle, recuperating in the
salubrious Bangalore Cantonment after fighting the Maori war in New
Zealand, heard of these ’’native mines” around Kolar and decided to
investigate. He found abandoned pits that sometimes went down to
about 250ft and more. He even found foot niches in the mud walls and
some ancient mining equipment. There were signs of the wood fires that
the miners had used to heat the walls of the pits. But there w ere no
miners and there was no gold,”

- 'End ofa golden age,' Gita Aravamudan, RedifT, May <8, 2000,
The vast wealth of the Tamil Empire under the Chola dynasty’ can only be explained by
factoring in the contribution which the KGF must have made. Indeed, this region was part
of the Tamil Empire under the long and prosperous Chola dy nasty

KGF; Built with Tamil Blood
Another important reason for the legitimate claim Tamil Nadu possesses over
KGF is that the recent 20th century mining boom was entirely due to Tamil
labour. Although ownership of the fabulous gold-mines rested with AngloIndians. the labour and work force was entirely Tamil:
Though the Gold Fields lay in the Mysore maharaja’s territory,
they were on the border with the erstwhile Madras Presidency.
The migrant labour came in essentially from neighbouring Tamil­
speaking areas.

• dtiv/AsAJAV dalitqtan nrnr/tami1/+aimiinnT htenl

i n/7/nj.

—1----------------------------------------------..................... —.............................

Kolar Gold Fields belong to Tamil Nadu

Page 2 of 3

-- End of a golden age,'Gita Aravamudan, Rediff, May 8,2000

The statement by Mr. Valentine, a draftsman at KGF from 1960-1974, also bears
out this statement.
"The entire labour force in those days, were the Tamils from the
neighbouring state of Tamil Nadu, who were the best preferred
for their honesty, ability to work hard and with no ties to labour
unions."

-- Mr. Valentine, Draftsman in KGF 1960-1974
Since the gold fields were mined ‘with the use of Tamil labour, Tamils do not only
have a perfectly legal claim over the present territory of the Kolar Gold Fields, but
in addition, to the vast quantities of gold (estimated to be around 1000 tons) as
well. The Tamils should press the Indian Union and Great Britain to return this
quantity of gold to the Tamil people.

Indian Union destroyed KGF
The gold-mines continued to produce vast wealth right up the day of so-called
'Independance'. Then, suddenly, ruffians and goons in the pay of Hindi political
parties started to sow the seeds of racist and communal anti-British hatred.
'Throw the Angrezi out!' and 'Destroy the Agrez!’-were the slogans used to
incite hatred against the European mining engineers who had developed the
mines. This was revealed by a veteran of the gold-mines in a recent newspaper
article :
"We also lived through a great trasnition. Waving the red and
blue Union Jack one day ... Then, suggenly, this frail and
scantily clad man glides in and out of our town. The red and
blue flag is put aside. It is now saffron, white and green ... The
new leaders exhort people to throw out the vellaikara. That was
the beginning of then end. KGF would never again be the same.
The year was 1942. Now, more than half a century later, we find
a 75-year old man tending the bar in what was once the
Eurpoean club. Gazing at the black and white portraits of his old
British masters, he sighs, "They were our real benefactors ■
Such good men, I tell you ..." So much for history!"
-- 'A sigh for the valley of gold,'by Vatsala Vedantam, Deccan
Herald 29 April 2000

Then, with the exodus of trained and qualified Anglo-Indian mining engineers,
the production of the gold-mines suddenly dipped. The appointment of Hindi
'engineers' who often lacked in expertise and were solely appointed because
Hindis had captured power following the departure of the British, did not help
matters. Production dwindled. In addition, the Hindi imperialists inheriting the
Indian Union did not take kindly to what was so obviously a Tamil piece of pride
and heritage. It was feared that this wealth generated in the South led to too

http://www'. dalitstan.org/tamil/tamil003.html
Kolar Gold Fields belong to Tamil Nadu

1 A /7 'fl 4
I xh ! > u*+

Page 3 of 3

much power for this region. They did not like that the greatest gold-field in Indian
history should be a South Indian gold-field, and a Tamil gold-field at that I Hence
steps were taken to slowly kill the gold-field. As a result, production slowlydeclined until, by the 1990s, the gold-field was finally declared dead.
It is interesting to note that the Indian Union refused to continue operating the
gold-fields, declaring them to be 'dead', contrary to the opinion of highly trained
and experienced miners who have decades of experience in gold-mining :
"[M]iners whose families have lived there for more than four
generations insist there is still life in the mines. "

[ “ediff, ibid. ]

Future Course of Action
It is the duty of al! Tamils to peacefully and democratically campaign for the
reunification of Kolar Gold Fields with Tamil Nadu. In addition, they must
highlight their demand for the restitution of Kolar gold to their people. The Jews
have rightfully obtained the Nazi Gold which the Third Reich had stolen from
them during the Second World War. The Tamils should press for the restitution
of Kolar Gold stolen from them during the Sudra Holocaust and the illicit plunder
of Kolar.

[ Rack to Main Index 1

http:/./www. dalitstan org/tami1/tami1003.htm1

10/7/04

BOHL SflFffl K6RMRCHARIS MULTI PURPOSE
COOPERATIVE SOCIETY
No. 26906*2001) Kolar Gold Fhtds.

Sanitary Office Promises. Champion Reefs, K.G F. • 563117
S»crtl»ry :

SIMON

K. MURAiUkUAiAB

C P. SAMPATH PRABHU

Du«ld oi 0‘ikIou *

rt ABHU OASS.

C t. IA.ZAI.

V. CURUMURVHt.

tty. Tlo.

K. SRINIVASA.

C MARIAMMA.

THIRUPPAMMA.

Date ....1... 1

T(T---------The Deputy Commissioner,
Kolar.
Respected Sir,

Sub: Immediate Intervention to prevent Death due to STARVATION

Wc inc Safid Kannacharis living in Kolar Gold Fields wish to bring the following urgent matter
to your kind attention.

Wc were doing sanitation work in BGML. After closure of the company, we were transferred to
Robcrtsonpet City Municipality. The Municipal authorities extracted wzork and never paid the
wages. Afier 10 months of work, they informed us tliat they are not responsible for the sanitation
of BGML Township. We approached Deputy Director of Municipal Administration, Bangalore,
who informed us that Government has agreed io pay only two months salary and the file is
pending approval
Wc are all put to great hardship without any income for the last months. We sold all our small
bckxigings to buy food. The provision shop owner also stopped giving provision on credit since
we have not paid the out starring bills for more tlian 12 montlis. The women and children of our
community are virtually starving and about 25 persons are nearing their death due to hunger. We
do not have land or bouse of our own. Due to drought for the past 2 years even coolie work is not
available.

Wc are prepared to do any work to earn our living. Hence we request you to kindly arrange to
provide work and wages immediately, failing which many of our community will die due to
starvation.
.-ci•o

Thanking you.

Yours faithfully,

^5j 8

4-,

A.A. Rao
Tel. 23388121
23381280

fecvft-l 10 001

TTTRft

PRIVATE SECRETARY TO
MINISTER OF STATE FOR COAL & MINES
GOVERNMENT OF INDIA
SHASTRI BHAWAN. NEW DELHI-110 001

22nd October, 2004
>■ -m

Dear Shri Nair,

Kindly refer to your letter of October 16, 2004 addressed to the
Hon’ble Minister of State for Coal & Mines regarding extension of modified

VRS to BGML workers. I have been asked to inform you that the proposal
for implementation of the recommendations of the Hon’ble High Court of
Karnataka vide their order dt. 26-9-2003 which inter-alia includes
implementation of 6-11-2001 VRS package in BGML is in advanced stage of

consideration and decision in this regard is expected shortly.

With regards,

i

sincerely,

(A.A. Rao)

Shri VJ. Nair,
President,
Bharat Gold Mines Employees Union,
* Marikuppam,
Kolar Gold Fields - 563119

TOWARDS GREEN AND SAFE KGF,
ISSUE No, I

JUNE 2003.

A small township spotted with lush green gardens, stretching avenues of huge canopy
woods, curling roads, flowing purified water, lovely surroundings, pet named. 'Little
England', That was our 'once-upon-a-time' KGF. That splendor has become a tale of the
forgotten past! The present condition of KGF? Needs no words!
The misery ushered in by the 'closure-decision' of the mining company and the other
connected sufferings and dismal state of sanitary, water supply, medical facility, etc are real
drastic things, but. anyway, let us hope that the management, ministry, leaders and the
judiciary bring justice to the people and the industry.

' We beseech your attention to some other invisible but ongoing danger, which is growing
day by day under our very foot. Think of the consecutive droughts, water scarcity, our air
polluted with cyanide dust, drying up lands, stinking environment and the start of
desertification. Our underground water is polluted with fluoride, nitrate & heavy metals!
Do we really think of this bulging evil? Millions of invisible micro organism in the soil,
plants, butterflies, trees, animals, human beings, ground water-all these things are mutually
depending upon each other for their sustained survival. If any one is endangered in this
'Chain of Nature' then the whole chain is affected. Now the Chain of Nature in KGF is
totally endangered. Our underground water table is depleting drastically. Earth is our
mother. Unless we feed the stomach of our mother, how can we expect secretion
of milk in her? Only blood will ooze out.
Yes, we continuously suck the blood of
mother earth, while we fail to feed her. This is what happened for hundreds

of years. In order to mine out gold we sucked out water. And each and every
drop of rainwater was not allowed to recharge the groundwater. Instead all the water
was diverted somewhere - like Bethamangala and other lakes.
Now we all suffer
without water. Think of future KGF - Can we imagine a’desert KGF?.
It is high time for us to realize that it is our duty to regain the lost glory and natural richness
Let us join hands
of our city. Let us not assume that it is only the duty of the government,
Only with this
and put our souls into this and volunteer towards saving our township.
idea and concept a group of’socially conscious citizens of KGF have formed a forum called
'Thanneer'

*

Thanneer'



It is a people's

forum having a long-term goal of recovering and sustaining the

natural resource of ou] place.
Transcending politics, caste, creed, religion, language, the team
safeguarding 'Humanism' and conserving 'Natural Resources'.
Some droplets

of

envisages

Thanneer

Taking necessary I possible steps towards 'Recharging 'underground water table by way of
afforestation, slope land development, rain water harvesting & water conservation,
a1
Taking efforts to control air pollution.

Soil & water conservation efforts through awareness campaign against the use of plastic
bags and anti-environment and anti-human chemicals.

1

Taking all possible steps to repair and regain the endangered natural ecosystems of KGF

to make the township a safer place.

People s Participation
Let us make this dream come true through our united efforts and active participation all
those who love nature and commit to enrich our nature and people likes come together

as droplets to form a mighty flowing stream action, to make KGF green and safe.
We bring this to the notice of all citizens and particularly those who were born, broughtup, educated here and employed here and elsewhere, so that we all consciously and actively

come forward and take this initiative to achieve the goal.
Together we come I
Together we work,!
Together we Green KGF !

To ensure your participation and for sharing suggestions and resources please contact :

The Convenor,
'Thanneer'

C/o. Sunanda,
Krishnapuram,
Peddapalli fPO)
Kolar Gold Fields
Karnataka - 563 121

Thanneer
People's Initiative for Natural Resources Conservation K.G.F.

i

What about the bleeding earth ?

ii

Can't we feel its wounds ?

iii

What about natures

iv

Its our planets womb I

v

Micheal Jackson

worth ?

[Earths Song]



-

Co

c.

i

(

■k»
/

'

----------- 'ER SGML WATER SUPPLY SYSTEM AND SANITATION

agrEMENT FOR HANDING OVI

SYSTEM TO CITY MUNICIPAL COUNCIL, ROBERTSONPET.

I
5 \

,

In pursuant of the

'

*

proceedings of the meeting held on 31.1.2002 in the

J.

(M & UDA ), Urban- Development
Chambers of secretary to Government
Department, and subsequent to letter No... PN /AC / D6 / 2001-02 dated 6.2.2002,

I

2002 M/s Bharat Gold Mines Limited
an agreement made on this day, 15th Febrauary
Febr
"Company")represented by BGML officials
Suvarna Bhavan, KGF (hereinafter called
and City Municipality, Robertsonpet, KGF represented by President, City Municipality

L •

and Commissioner, City Municipality for taking over the Water Supply System

and

sanitation system of M/s Bharat Gold Mines Limited.
t

I?

Whereas the 'Company^R^^

the Water Supply and sanitaton jobs in vleg of closure of the company.and
I -Tover
stoppage of production activities, Subsequent to discussions held with the various
I

senior officials of Urban Development Department, Directorate of Municipal
1
Administration , Dy.Commissioner, Kolar, KUWS & DB and City Municipality, a finality

was arrived and it was agreed on both sides as follows:The CMC will take over' Wate’r supp^sySterfirand tfanitatkrh^tem-in -the area—

;

1.

J- ’

of "Company" township.

2. The

V

T

,'y

CMdBGML will abide by the Condition of the proceedings held on 31.1.2002.

Pumping stationed and pumps/ Motors and borewells in the
3. The list of details of
BGML township are furnished in the Annexuure -1

supply system includes pumps, pipes, masonry tanks and steel tanks
4. The water
connected to existing water supply as requested by CMC, the company will

provide mobile water tankers to n.eet immediate necessity and to continue till
water supply system is stabilized. The CMC will take over water supply system

' and sanitation system at the existing condition.
5. The list of contract labor / casuals engaged for water supply is furnished in

Annexure - 2 forming part of agreement, whose wages will be borne by CMC
with effect from 01-02-2002.

•*

t

H - 'Z S'- M M

e On taking over wate. WPly

“’“cMcX no way me - Company '

Casuals as stated in the para Si no.
is responsible.

, M
pumps/ accusspoes
maimaineo W
CMC at ~ir

« V

°

mstauatloos of waler supply system to CMC, KGF ««
„ The company has given weust of b.usesMccup3»<s»>>« are authorized to draw
as per their rules in force for
the water. CMC may take up appropriate action
unathorises connections, If any-

the immovable assets till such time of
9. The Company will have hold over on

clearances from various statutory agencies

as envisaged in the Act.
»

10.The .« of contra faour , cosuois
contractor is furnished in the Annexure - 3 formmg pa
wages will be borne by CMC w.e.f. 01.02.2002.
HicrMitPC b@tw£eri contrsct lobour/

responsible.

collected from the
12.Water charges and sanitation charges, if any, will be
employees directly by CMC., KGF.

machinery/ materials purchased for new pumping scheme will be
maintenance. The list of
CMC for completion of left out work /
handed over the J
- 4.
such machinery/ matiterials are furnished in Annexure

13. Some of the

ci this aoreement may be referred to appropriate
14.A« th* deputes in respect of this agreement
....before approaching Court of Law.
'S^rS^Bhoritiesforthe final decision
^X^Twhereof
pa*- ’^resaid have hereunto set and subscribed the.

names on the date first above written.

a

■ 83



,I

;'
^.-

|

A
For Bhdrt_£j Mfe4irLgs_Udiu-

z

(A. NATHAN ),
Senior Engineer, TAD.

■wU

)t
(S.SAMW
‘^t^CornpanV.
I/C. Affairs

U4

For City MuniqBali&c£5 F.
^CpJO-OT)^13^
(K.MJKa««rppa)<''’
Municipal Commissioner

(DASS CHkN^ASAVRI)/
PresfSent.

Witness:

Witness:

1
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6. Financial Implication of (a) take over b-r tho OovornMent
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under OIA Code for not. -- 1
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nearest Govt, or Alded,school a,
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association onn run school in further,

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ADMINISTRATION

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B.G.M.b. WORKERS
(A Unity for Success)
Henry’s Shaft, Near Five Lights, Kolar Gold Fields - 563 120. KARNATAKA.
Date : 24-3-2004

To

The Dy. Commissioner
District Election Commissioner

P

Kolar District.

I

{Pl

y

0^

Through : The Elccction Returning Officer, KGF Constituency.

OF BGML WORKERS

e

)[/

\\

Sub : Mass Boycott of Ensuing Elections by the
— BGML Workers & their families

P—tTie Workers of Bharat Gold Mines Limited (A Govt, of India Enterprises)
^Kqf^fGot ^d Fileds. Which has. yielded more than 800 tonnes of Gold as the treasure of our
----Country
and still have the abundant unexploited Gold.

I

And we the unsettled workers about 3000 of BGML presently on rolls, belong to the

B

BP

3rd or 4th Generation to the descendants of BGML Scheduled Caste Community. We would
like to enlighten and highlight the following plight of us to the Governments Authorities and

Kp" '■

we decided to Boycott the ensuing elections of Parliament / Assembly untill our
BGML Workers issue is resolved immediately before this ensuing elections which
is pending before the Government of India, since 38 months.

K'PP

Reasons for Boycotting the Elections,
* Even after the Judgement of Karnataka High Court before 7 months, till date Govt,
of India has not responded to the recommendations of the Court, due to this we

have lost more than 75 workers who died of starvation and mental agony, their

families are left to the streets.
* Govt, of India has withdrawn our employment before 38 months without paying

salaries and also withdrawn very basic amenities like Water Supply, Sanitation and
Ration and no Rehabilitaion is done sofar.
* Govt, of Karntaka has not restored Water Supply, Sanitation and Ration sofar.

It

i

has neglected the fundamental rights of citizens.

Ip


Hence, we the BGML WORKERS voluntarily Boycotting this ensuing Parliament /
Assembly Elections with this Mass Signatures and a huge Mass Rally taken out on 24-3-2004
to protest against the Anti-Worker Policy of the concerned Governments, especially towards
the scheduled caste community of KGF Constituency.

We are not against the system of Democracy, we are constrained to take this decision
because of the total failures on the part of the both Central & State Governments in taking
care the welfare of the People.
Encl : Signatures of Citizens (Voters)
of KGF Constituent

~

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6-11-2Uu4.

J(nt •I’l.'UW A|\I IT HA,
u/o
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/a late
□ lock flala ya lee
■□.27, ’d1
Cham |j ion rteef ,K.G J •

i-lrie ,

T □

* he Superintendent of Police *
Champion Kuef,K«G.F«
Hasuuct^d 3ir»

Request to'‘issue the
IR copy of
my husband’s suicide case
registered at Champion Reef Police
Station - Reg»
v

5ub>

i

1 iegret to

inform you that, >3 my husband

j r 1 •James pa ul Raj, was suicide
and died.
Police

A

31 a t i u n,
nation,

In this

arrange

case has

on 13.1U.2UU4 in cur house

been registered

vide case

ko.^FlR)

UUR

in the

No.8.

1 raquast your goodoelf kindly
' < *•
copy
of the F IR registered at the

connection,

to issue

the

tat ton and

Champion Reef Police

oblige.

I ha nklng y ou.
Yours

faithfully,

Umt.MANY AN1THA)

i ■ i
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Champion Keef

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Page 1 of 1

1/1^ h. til
L AST week. 1 vent to KGF A Xy

I

'

backwards to tiiue with my three sib-

W

xA dahf
;n for the
v^HPV O

<■

VH ,rv of
* ’ gold
valley

___________________________
ay farewell to those beloved gold fields where ----- nv VATS ■ VVED A N i A M----By>VATSALA
VEDA1MTAM
vMihe man h^l
in ftnarrh nf a fortune
!>}
Al
ViSPAn
1A1V1
_5
years
ago.
That
man
was
our
father.
I
wonFernandez,
the
genial
post
mistress,
Mrs:
f
fdered how he would have fell to know that the Abrue. The old pharmacist who used to paint
.mines would fc closed at last. To see those our „w throats with tincture; the obliging sta
Ijumbhng ragel carrying■ hctonetcd workers up lion master who waittJ UH we were all safely
.'.and down sifenod forever Thank'.God. he is dboard before flagging off the train.

tip longer there l&see these things.
KGF was our own green valley where time
We went back IO the old house with ns stood still to give its inhabitants space to
lifed rpofs: and uuaipf veiiulators. strangers ■
along, others wonder why we melt with
looked at us curiously, unable to understand nostalgia for a ghost town with its crumbling
our emotions as we stood under the potnegran- C0ttagCS, ungainly shafts and cyanide mounate. tree remetnbemg how their blood red' tains. But thafs because they Aid hot Kn6w the
seeds incited in the mouth. At the old school, excitement of. hurtling down 9000 f«-t below
the new inhabitants were Bused to see us the ground to pick up a black stone which
peering.fato the disused parlour where the flashed like Excalibur as you turned it this
French nuns ewmined' bur hemlines while way and that They had not seen liquid gold
pretending to teach us music. The Mysore foaming m huge troughs. Or. walked along
Mme club, the Champion RM hospital, the tran) |ines al lh(? <rafk L.f dawn behind tong

; IX a"'1

•*»



•■»>*«« A.--*!, *w

miicmbcM th^itu Onlb the
whom we
knew were all gone. The helpful library Sun

r-

'

was imcompliratM.
tenge Was to sec-'ti
brightest. Even trag
?qSC> rr7.lfyinB
houses. Miner s hut (
No one was spared. 1
A peaceful colony
hifemo m the worst.
We also lived thro
Waving the red and
nnd singing God sa
suddenly, this frail
sW m W out ot. cn
flag is put aside. It t
srem accompanied
' Viduthahi1 Vidutha
leaders, exhort pecipl
That was tl
KGF would never agt
was 1942. Now, more
we find a 75-year-old
what was once the I

Of growing up in a mining town where you Actors. Such good r
everything with everyone. Where life much for

http://www.geocities.com/snoopyg_2000/ ! kgfl .jpg

10/7/04

Kolar Gold Fields , KGF - A Colonial Mining Settlement near Bangalore

Page 5 of 5

through the night.
Entrance:

• Rs.25/00 per head for Members of KGF
• Rs. 100/00 per head for Members from Bangalore
• Rs. 200/00 per head for Members who are from abroad and on a visit to KGF /
Bangalore
• Children upto the age of 12 years ... FREE
• The above rates include DINNER and a complimentary DRINK
For Reservations:
Please Contact: Mr. D.J. King, Phone: 361940, KGF; Mr. Clinton Kelmen, Phone:
9845105922, Bangalore
Please Note: Reservations shouold be made on or before January 7, 2003 Final.
Entrance not available at the door for any late comers.
Executive Committee:
Dr. G.W. Dias, Phone: 360038, Mr. W. Orton, Phone: 360622, Mr. D.J. King, Phone:
361940, Ms. Sheola Monisse Phone: 360162.
A newspaper cutting, Deccan Herald 29th April 2000, Vatsala Vedantam
I spoke to the (Late) Bill Richards, ex-President of the All India Anglo Indian Association (KGF
Branch), he said that he would give me some material, unfortulately this did not materialize, and
so if anyone else can give me the same information, please do. Ronnie
People who have sent in their contributions regarding requests for family information,
records, and about people present, past and overseas. Also photographs.
[CLICK HERE TO GO PEOPLE FROM KGF]
AND[CLICK HERE FOR DIRECTORY AND LIST OF RESIDENTS OF KGF IN 1905]
THE KGF PHOTOGRAPH COLLECTION
~
(Page is being updated all the time, but I need inputs and photographs from people of
KGF to make it happen, can you help?, We need photographs of various mines, group
photos, cemetery photos, events, weddings etc, lets make it a 'family' page, even those
of you around the world who would like to 'update' others on your appearances and
families, most welcome to send photos, news .. [max file size of each photo should be
around 40K at 72dpi format .jpg for best viewing and downloading, number of photos not
a problem]. If anyone can give me a good contact at KGF where I can collect inputs, and
be able to stay a day or two, with someone local to take me around the place, I will make
an effort to gather as much as I can and perhaps make a new site if space is required)
Ronnie
Ron's new e-mail: Ronnie 2

Return to Home Page : India Hello, Bangalore Walla, Namaskaral
This Page Hosted by GeoCities Get Your Own Free Home Page

http://www.geocities.com/kolargoldfield/

10/7/04

CITY MUNICIPAL COUNCIL
robetsonpet k.g.f.
DatedA11' beb 2002

N o: 1<C M/ S pi. M eeti n g/C R/2/2 001-02

SPECIAL MEETING NOTICE

A Special meeting to be held on 11-2-2002 at Council hall.
City Municipal Council, Robertsonpet-K.G.F. At 11-00 A.M.

Hence all the Hon’ble Councillors are here by requested to

attend the meeting well in time.

agenda
1) Regarding taking over of SGML Water Supply and Sanitation by the; K.G.L
Citv Mumcipality, Robertsonpet, K.G.F.vide proceeding dt.31-1-2002 ol

Secretary, UDD, B’lore.
2) Conforming of Self Assessment Scheme at CMC K.G.F. reg.

MUNICIPAL COMMISSIONER
CITY MUNICIPAL COUNCIL
robertsonpet k.g.f.

- 2
:• • • 7-

$1'.

I

| Name of the worker

No*. I

I
I
27 I
I
28 I
I
29

Efnalamma

8Bckiemma
Gop a 1

V e damma

I
Y . Backiyamrnc.
I
I
31 I Simon
I
Prabhu Dass
32 I
I
J.P.M. Moses
33 I
I
E z i1 ar ©son
34 I
I
I.Kirubagaran
15 I
> I
T. David
16 I
r I
iZ | G.L. Joseph
J I
J. Srinijvasulu
V I
v I
I Shearoc k
. I
0 hi napp a
W I
r I
Ramash
4J I
f I
Seetharam
I
e I
Stalin
VS I
r I
Lazar
4> I
r I
Kondiah
I
f- I
J. Raja
^.6 |
, I
A d a iah
4.7 I

33

.

46 |
* I
49 |
|
5-0 |
f' I

r

f.

A n o ch

Ravi
Manjuna th

— I--— I'
I 38 |
I
I
I 36 |
I
I
I 28 I
I
I
I 42 I
I
I
I 38 |
I
I
I 34 |
I
I
I 34 |
I
I
I 32 I
I
I
I 35 I
I

I

I 35 I
I
I
I 34 I
I
I
• I 35 I
I
I
I 31 |
I
I
I ^8 |
I
I
I 38 |
I1
I 30 |
I
I
I 31 I
I
I
I 25 I
I
I
I 28 |
I
I
I 25 |
I
I
I 28 I
I
I
I 33 |
I
I
I 35 |
I
I
I 25 I
I
I
I 32 I
■I
I

I
I

Address

I As# |Father/Mother |
|
| Wife/Husband I

I

|

65 Andhra block

I
I
I
I
I
I

70 Andhra Blkock

34 Andhra s 1 k o c k A . PET
Out House Bunglow

C-02? Ck

5 0 ft n ci'h r a block MM

I
I

| 107 Andhra Block MM

I
I 45
I

Andhra Block MM

10 Victoris Block MM

|

I
|

1 Edulji Block. MM

|

1 /A Victory Block MM

I

| 109 Andhr a Block

I
I 111
I

Andhra Block

1/A Andhra Block

|

I

I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
i

| 70 Andhra Block

I

68 Andhra Block

|

I
I 1A Telugu Line A.Pa t.
I
I 2/6 Telugu Lino A. Pe t
I
I 1 03 Andhra Block ND
I
A. P=t
|

2/B Telugu

I

Andhra Block MM

|

1 20

I
I
I

60 Ancihra Block

|
I
|

I
I
I
I

88 Andhra Block

I
Andhra Block

’Cricket Modi House

I

I
I
I
I
I

68'S' Block.C.R.

|Al

I
I
I
I
I

141

I

LIST OF

SI. I

Name of the worker

|

No.

I
| G Mariamma

1

I

| V Anthoniamma

2

I

|

3

to 1 lamina

I
| Naga Rani

4

I

|

5

Vegeramma

I

Ramaqacka

6 |

I

| Susheelama

7

|
|Ag»
|

A Rani

I

z’

K Martha mma

|

I

V) |

Shanthamma

I

p

VI | R Anthonismma
r I
|2 I Kamalamma
9
I
J.3 I Prema
I

f

Pe d m a

y4 |

I

V5 | i Kodamma
I
j-6 I

A Seervathamma

17'|

Jayalakshmi

r
V8

I

I Nirma la
I

r

Mary C H

)9 |

I

r

20 1 Rathanama
/' I
| Gu ram

I

.

22 | Thirupamma

2-3

I Lalithamma

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24

|

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Marne of
Father/Moxher
Wife/Husband

|
|
|

S Bloc* Cc

No 2 5 Q Slock OR

|

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I No 10 Andhra Block
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I No 71 / A S Block C R
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Block 0 o r gai
I N o 10/A Andhra
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Slock Oorgn

I 32 I
I
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I 35 I
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I 32 I
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I 33 I

No 10/A Andhra

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No 31 9 NT Block 0 o r a u m

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NO 38 S Block CR

I

No

|

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|

27 S BLOCK CR

NO 41

S Block CR

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Lin•
I No 3 Andhra Block Band
I
Block Andhra Lin
| No 322 NT
j No 68 S Block CR

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| No 308 NT Block Ogm

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No 330 NT Blo.ck Og m

|

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| Tempi € Out House

I 35 |
I
I
I 38 |
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I
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KGF municipality

SANITARY WORKERS HANDING OVER TO
CHAMPION REEF MINE

I

No 26 Q Block CR

|

I

No 44 Q Block C R

|

I

| No 26 Q Block CR

I

No 69 S Block C R

|

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| NO 48 S Block CR

I
| No 151

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Andhra Hospital

No 27 S Block CR

|

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|

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|

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No 17 S Block CR

No .629 ST Block Ogm

| No 349 NT Block OGM

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.

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Name of the worker

fcottamma

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30 I

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K.Hurali Kumar

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G.P-Sampath Prabhu!

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4 32 I

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CSI
Andhra Block

No..51

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No..342 MT

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No w327 NT Blk
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| No .330 NT Blk
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| No.351 NT
Block (Cost)
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|

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NO

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No

| 22 I
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No

|

II z;lI

|

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No

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Block CR
I N o 32 Q
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| No

Dhan amma

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No

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Susheelamma

27 I S

29

Address

|

|

23

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Name of
Fath.r/Moth.r
U ife/Husband

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S Slock

Champion

Reefs

Champion

Reefs

|

No b23 S Block

I
I
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No• 4 F

|

No .

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7th Cross
No .2 Zblock

|

N o . 30 S

Reefs
Block Champion

£3 S.Slock Chsmoion

.Block Chsmoion

Reefs
RPet

Reefs

I NO.2 F 31ock Chsmpi.on keefs.
I
I

IN BGML TOWNSHIP,
& VALVE OPERATORS
borewell
pumps
LIST OF

I
SV*. I
No. I

N a fl e o f the worker

| Selvaraj

1

I

| Thangaraj

2

I

| Chinnaswamy

3

I
I

Location
N o 2 P1amber6

|

I

Nagavaram

I

Nagavaram Pump Room

|

I

Nagav ar am

|

I

4 | Selvaraj
5 | Manuel

Pump R oo'n

|

I

No

|

Pump Room

2 Plambers

I

I
Plambers
I No 2

I

|

Gilbe rts area

I

Section
Edgards Bungalow

6 | Jayeraj
7 j Murali

I

B | Kana/iram

I
P j

. _
Manuel Dass

> I
WISH Subramani
£
I
1>1 | Kannan

I
U I P Thangaraj
. I
{.3 | Muniswamy
»*

I
|

r

ThambiyBPP®m

r I
15 I
»
I
|

A M Kennan
Kumer

I
I Sr eeramaulu
I
| Chandrasekar
I
I
|I Subramani

17
,
18
r
1-9

20 I Dorairaj

I

| Savaridass

21

*

I

*'

1

|

32

>■

| Swamlkannu
I
25 I Ravi
r I
—..............

r
X

r

Z

I
I

I
I

I

I
I
I
I

I
I
I
I
I
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I
I
I

I
area
I Redge rs
& Quarantin B loc I
I
| C A Block j D Block
I
8"H dia
di a Vertial Section

|

I

NO 2 Plumbers

|

I

| Water Lorry

I
I
I
I
I
I

Bloc |
& D Block g, Quarantin
A
Block
I
c
I
| Edgars pump r o o fl
I

I
I

I Edgars pump room
I
| Gilberts area

j

Married Quarters

I

Storage Tank

|

I
Hospital Compound
I
I
& B Block Borewells
I o
& L Block
I
| Alberts Squire KNJS & H

Vadivelu

3.3 | Chinsdorai

r

|

I

j G & FF Block area
I
& Drivers Lino area
| Coston site

I
I
I
I
I
I
I

I

I
I
I
I
I
I
I
I
I

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|

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BGML
BGML

Hospital

I

- 2
I
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r

sv. I

mork®r
Nan® of th®

I
I

Na.

| sivalingam

26

I

27 | KuPP1-* swamy

I

AnandaraJ

28 I

Locali on

r CR Maga*in e
Operate
I Borewo^lI No-16 Compr. Pump Room
I
Room
| No-16 Compr. Pump

I

| No .1

| Ramaiah

29

I
I
I

33 | Lazar

31 | p e r u « • 1
I
32 I M Re nu
I
33 | Arigori
3.4

I

No .2 Shaft

|

I

I 0o 1 aS ai Pump Room
I
I OoXag®lina’th^ Pump Room
I
I OolBQaPftB'th^ Pump Room
I

Room
| Oolagamathi Pump

Alexander

I

I NT Block

I
3.5 I Dorairaj
/ I ThangaraJ
V> I
i>

r
y*'

Shaft

*•!i

y | Damodaram

|

Shift

Block Services

I ET Block & ST

I B'lows Post Dftice
| Bull®ns Qtrs
& g*lows
\ Suvarna Bhav an/ Band Line

I

J..9 I G RaJoo

i I

II

& Sivaraj Nagar

' I

II

Joyaraj

4P I

II Shift

Bio Colony

| MWS/ ST block

IS I Vasu
,■

I Shitt

L Line Service)
(Punjabi
(r.
Block & ML Block
MWS/ ST C

|

vif- I ,

I Shift

Office

| Water Supply 1

/■

| Maizh’oen

4.1
,r

I

^2 |

.

Arjunan

I

L

f
f
f

*

----;---

I
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| MWSr NT Block

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___

a Ele colony

I
I
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I

3
SI. I
No. I

Nane of the worker

I
1st Shift

43 | Lakshmanan

I
44 |
I
45 |
I
46 |
I
47 |
I
4B |

Ilnd Shift I

Chinnaujamy

1st Shift

Daraiswany

Ilnd Shift

Ku p puswamy

1st Shift

Krishnan

Ilnd Shift

Gymk-hanna Pump Roon

I
I
I

bridge Shaft

|

Bridge Shaft

I
I
I

MWS Henrys Colony

I South S haft

I

I

|

I

|

Ilnd Shift

MWS Oriental Line

|

I

| MWS Ohobi Khanna

I

Coromandel area service

|

TM V. nu

I
| ND Magazine Borewell
I
service

I

| Arul Doss

I

| MWS Weslian Block

I

Kuppusu/amy

$3 |

I South Shaft

I

Subr amani

i I
J.3 |

Janaki Raman

|

Bhalaghat area

MWS Henrys Drivers Line

.

I

|

K

I

I

|

ND Dispensary Area

I

|

MWS Mill Block

I

I

| Govindan

^7 | Kanasasundra

,

5-8 | Sreetharaman
y

'

Gymkhanna Pump Roon

Thanavelu

50 | Kannan

54

|
I

I

RaJee

I
49 I
r I

52

Location

nd division

I
I

5.1

I
I
I

5.9 |

Kathirveloo

< I
60 I
* I

Manuel

|

I

| Tank Block

I

i *•

f

2

MWS Kennadys area

J a*..

I
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I
I

DFA

A CONSULTATION ON KGFJPEOPLE’S STRUGGLE FOR JUSTICE
A report by S.J.ChandSrT^ommunity Health Cell, Bangalore
Introduction

A consultative meeting on the problems faced by the residents of Kolar Gold Fields
(KGF) due to closure of the gold mines was held at Community Health Cell Bangalore on 4th
November 2004. The meeting was organized at the request of Aikkya Dwani. (United Voice)

Background
Mr. Rao retired technical director of the Bharath Gold Mines Ltd (BGML) gave the following
background information. BGML was taken over by Government of India in 1962 after British
left India. Sri Morarj i Desai was appointed as the first chairman of the company. During this
time the mines was extracting over 2000 kgs of gold every year. During the year 1976-1980
the company made a profit of Rs. 10 crorer. When Mr. Subramaniam was appointed as
chairman of the company in 1972, he suggested closure of the mines.

4^
v

It was reported that the mines was making profit till 1980. Since the mines were run as depart
there was no need for producing profit and loss statement. It was declared a sick unit in 1984.
It was declared to be running under loss but actually the company was not running under loss
but the value of the gold was estimated less. It was estimated at IMF rate, which was 20-30%
lower. The Reserve Bank of India took the Gold extracted. It was reported that Geological
Survey of India assess situation of gold availability and said so far gold has been extracted
only 8 kms stretch; there is a possibility of extracting gold for another 50 kms stretch.
Gradually the staffs were reduced and finally the government decided to close the mines in
2001. Mr Rao said there were technical problems also were responsible for declaring it as
running under loss. Problems such as the engineering technology introduced in 1946 were
insufficient to go deeper for extracting more gold. The Gold mines was a state property
leased out to the central government and the state government never showed any interest in
the gold mines.

Proposal for alternative livelihood
Though the Bharath Earth Movers (BEML) was started in KGF to provide alternative
livelihood for the employees of gold mines, unfortunately majority of the unskilled manual
laborers of the miens were a misfit at BMEL at the nature of the job required technical skill.
Mr. Rao said during the year 1988-89 when the government proposed to close the mines with
Voluntary Retirement Scheme; he gave a proposal to employees, drawing from the example
of an UK based company which was run as cooperative in a similar situation by the
employees. He suggested a part of the money that was allocated for settlement by the
government could be used as seed money for running the mines and every employee could
have become a shareholder; the remaining part of the money to be deposited in the bank. If an
employee wanted to quit his job, he would be settled with the money in the bank. He said
since there were so many union it was difficult for them to come to a consensus and accept
this offer. There was also another proposal by the Agricultural Finance Corporation to start
alternative job opportunities through land-based development, as the weather and water
facilities were favorable. The employees were not interested in such proposal they only
insisted the government either runs the miens or settles them with compensation.

1

DFA

People’s struggles for justice
It was reported that since the time of closure many protest rallies and memorandum
submissions have been organized. Unfortunately these activities could not influence much the
policy makers, as there are divisions among the employees. Each of the 110 blocks is being
controlled by one political party or the other. Sr. Celestine of Aikya Dwani said lack of
financial resources was one of the reasons why the cry of the people of KGF For justice and
right could not be sustained. She said she approached a few agencies for financial support but
did not succeed. With little support that she received from an organization she is running
balwadi centers in three blocks. Sr. Stella reported that through her congregation they are
running a community college, which offers job-oriented course for girls. It was reported that
Aikya Dwani organized a consultation a year go at KGF in which over 40-45 organizations
participated. A few organizations made commitment in the meeting to offer support in certain
areas. Accordingly, life skill education training was given; a group of trainers have been
trained. Programme on herbal remedies have been organized and self-help group is being
organized. A few bore wells have been dug but the pipelines need to be laid for providing
water supply. ETCM hospital has conducted two medical camps.
Present situation
Geographically KGF was divided into two areas for administrative purposes viz the gold
mines area and municipal area. While the BGMIL was responsible for providing the basic
amenities for its employees the municipal administration provided the same for the non­
mining area. After the closure of the mines the residents of the mining areas area were
stopped the basic amenities such as water and sanitation. It was reported that people would
wait for the trains from Bangalore to fetch water from the coaches. Many occasions they were
chased by police from doing so.

However they have been allowed to live in the houses provided by the mines for a nominal
rent. The education department continues run school in the area but the health services have
been stopped with the closure of the hospital run by the mines and sanitation work with the
non payment of wages to over 100 sanitary workers who were attending to sanitation needs.
It was reported that while closing the mines, the BGML handed over the health and sanitation
work to the municipal administration and has agreed to pay Rs.501akhs towards it. As
BGML failed to pay money, the government has issued an order to stop all the services to the
mining area. It was reported that the director of directorates of municipal administration told
that the money has been paid. They sanitary workers have worked for 11 months for 50
rupees as daily wages. Since they did not get the salary after a year they have stopped
working.
Mr. Rao the retired technical director said it would be difficult for any agency or government
body to provide infrastructure without the permission of BGML as they land ownership still
lies with BGML. It was reported that the Karnataka urban water supply department is
creating the facility for small population of KGF.
Over 4000 employees of the KGF were there during the time of closure. They are now
without jobs. As the employees were drawing a meager salary, the compensation offered to
them at the time of closure very less therefore that employees refused to accept it. The
dispute continues between the employees and the government. In the mean time the
employees began borrowing money regularly from the local moneylenders for survival. The
moneylenders are lending the money liberally hoping that they can recover once the

2

DFA
government settles the employees. This is a serious area of concern. When the final
settlement takes place the people would be left without anything in their hands, everything
would be taken by the moneylenders.

It was reported that many people are suffering from silicosis but hide it to get compensation.
Women do get some domestic jobs but men nothing. Men get disheartened when their wives
expect them to get some income to the family and they are unable to do so. This has lead to
mental torture and suicide of few men. It was reported that so far 64 starvation deaths have
occurred in KGF. While showed a deaf hear to the struggles of people in KGF the
government is busy auctioning 1 the scrap.

According estimation there about 15000 families support get ration card. (Yellow supposed
to be given to families of below poverty line. It was reported that about 2000 yellow cards
were prepared to be distributed but it was stopped due to political influence. Economically
better off people procure yellow ration card with political influence.
It was reported that government is implementing sthree shakthi programme in the non-mining
area.

Proposed follow up action
Use the right to information act to find out who is responsible for the present situation of
people in KGF. Mr Rao of Gram Vikas said. There is a need to need to exploit the media to
bring to the notice of people in judiciary and opinion making the issue. Take the issue for
discussion at various platforms and fora. He said he would help with a few media persons
known to him.

Mr. Rao the retired technical director said the government must come forward to rehabilitate
the people of KGF. One of staff who has taken VRS said Since BGML is collecting the rent,
it should be demanded to provide the facilities.
Mr. Susairajbabu one of the employees of BGML said there is a need to form a support group
in Bangalore for advocacy and follow up on issues that the people of KGF have already
raised. He said it is difficult for the people of KGF often travel to Bangalore; they cannot to
pay.

The need for addressing the issue of alcoholism was expressed. It was suggested to produce
all the material in Tamil. It was agreed to conduct awareness on water and sanitation among
the block panchayat members. Since each block has panchayat and the leader of the
panchayat play an influencing role it would be easy to mobilize people through them. The
group has agreed to publish a booklet on water and sanitation with a special reference to
KGF.
Mr. Rao of Gram Vikas present there suggested that CCF programme would be of help to
children and he would be able to help with their programme in Bathemangala. This proposal
to accepted after much thinking as people present had earlier experience with CCF
programme. They said CCF programme divides the community as it focuses on support to
few children in a family. It was reported that there has been a change with CCF regarding
their policy to support programmes related to livelihood issues off late.

3

DFA
It was also decided that small team from Bangalore would visit to assess the situation
regarding health and sanitation and the group has agreed as a priority they would explore the
possibility for addressing these two vital needs of people.

4

Go

H-SS-

4

•B.

f .^GREMErTT FOR HANDING OVER SGML WATER SUPPLY SYSTEM AND SANITATION
H
SYSTEM TO CITY MUNICIPAL COUNCIL, ROBERTSONPET.

In pursuant
pursuant of
of the
proceedings of the meeting held on 31.1.2002 in the
In
the proceedings
Chambers of secretary to Government
(M & UDA ), Urban- Development

SBN
'

Department, and subsequent to letter No. PN /AC / D6 / 2001-02 dated 6.2.2002,
. made „„
an Jagreement
on ,-hie
this day, 15
15th Febrauary 2002 M/s Bharat Gold Mines Limited
Bhavan, KGF (hereinafter called "Company")represented by BGML officials
E '-Suvarna I---------and City Municipality, Robertsonpet, KGF represented by President, City Municipality
F '
and commissioner, City Municipality for taking over the Water Supply System and

»-

L

sanitation system of M/s Bharat Gold Mines Limited.



- ■ W-,- ■■ ■ '■

11-■/ '-B-G B"

■ •

Whereas the 'CompahSsR^jn^.to^
|

eve, the water Seppty and sahlMotylaKh. view of ct^sure rf t^e rempany.and
stoppage of production activities, Sutewent to discussions held with the various
senior officials of Urban

Development Department,

Directorate of Municipal

Administration , Dy.Commissioner, Kolar, KUWS & DB and Qty Municipality, a finality

was arrived and it was agreed on both sides as follows:-

j;,,


The CMC* wtli uBoveB^teT^^plwsySfeS&nd ^itaVuh^stenY in the area- -.
of "Company" township.



2. The CMdBGML will abide by the Condition of the proceedings held on 31.1.2002.

c

3. The list of details of Pumping stationed and pumps/ Motors and borewells in the
BGML township are furnished in the Annexuure -1

4

The water supply system includes pumps, pipes, masonry tanks and steel tanks

' connected to existing water supply as requested by CMC, the company will

provide mobile water tankers to meet immediate necessity and to continue till

i

water supply system is stabilized. The CMC will take over water supply system
and sanitation system at the existing condition.

5. The list of contract labor / casuals engaged for water supply is furnished in
Annexure - 2 forming part of agreement, whose wages will be borne by CMC

with effect from 01-02-2002.

I

■'

(

cXTno way Che ’ Company-

6. on taking over
Casuals as stated in the para SI no. □
is responsible.

, Wl toe pumps/ a— anO —rnsmta^ hr the CMC at their co. -.-. 01 «

°

mstauatlons of «ater supply system to CMC. KGF on

8

are authorized to draw
mtm«, has given the ust of houses, occupants
as per their rules in force for
the water. CMC may take up appropriate action
unathorises connections, if any.

the immovable assets till such time of
9. The Company will have hold over on

clearances from various statutory agencies
10,The „fl

as envisaged In the Act.
i

comma ..bur / —.

Vp.""^

commctbr is furnished in the Annexure - 3 forming part of agreeme

wages will be borne by CMC w.e.f. 01.02.2002.
,t on taamg over ths sanitary system, any d.sputss Oe—er. contract labour,
e.su“ o’ as stated .n Para Mo. >0 has ~«h CMC and no »a, me Company

responsible.
12.Water charges and sanitation charges

4 if any, will be collected from the

employees directly by CMC., KGF.

13 some of the machinery/ materials purchased for
for new
new pumping
pumping ^eme ^be

' nanded over the CMC for completion of left out work / maintenance. The
such machinery/ materials are furnished in Annexure - 4.

14 AM tM disputes m respect of this agreement may be referred to appropr.ate

Govwwr^t'Authorities for the final decision before approaching Court of Law.
in witness whereof the parties aforesaid have hereunto set and subscribed the.r

J'*: ;

names on the date first above written.

:

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fcfUineslMM- ;

F^ir BhM

(S.SAMPJ
I/C. Affairs

For

(A. NATHAN ),
Senior Engineer, TAD.

)/
oftllS.CompanVr

itv Muniaoalitvx^SE

(DASS CHiNNASAVRI),
Presf6ent.

(K.M.^wwWa), ’
Municipal Commissioner

Witness:
Witness:

k^P

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2.

M/^6iEfcCF"^NCfc>

.

.

.


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B.G.M.b. WORKERS
(A Unity for Success)
Henry's Shaft, Near Five Lights, Kolar Gold Fields - 563 120. KARNATAKA.
Date : 24-3-2004

To

The Dy. Commissioner
District Election Commissioner
Kolar District.

Through : The Elccction Returning Officer, KGF Constituency.

FeMORANDUM OF BGML WORKERS

e.
&

Sub : Mass Boycott of Ensuing Elections by the
— BGML Workers & their families

Workers of Bharat Gold Mines Limited (A Govt, of India Enterprises)
^■^Xifur^Gold Fileds. Which has. yielded more than 800 tonnes of Gold as the treasure of our

J X

^Country and still have the abundant unexploited Gold.
W ■*’’ "h
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And we the unsettled workers about 3000 of BGML presently on rolls, belong to the

3rd or 4th Generation to the

descendants of BGML Scheduled Caste Community. We would

like to enlighten and highlight the following plight of us to the Governments Authorities and

we decided to Boycott the ensuing elections of Parliament / Assembly untill our
BGML Workers issue is resolved immediately before this ensuing elections which
is pending before the Government of India, since 38 months.

Reasons for Boycotting the Elections,
* Even after the Judgement of Karnataka High Court before 7 months, till date Govt,
of India has not responded to the recommendations of the Court, due to this we

have lost more than 75 workers who died of starvation and mental agony, their

families are left to the streets.
Govt, of India has withdrawn our employment before 38 months without paying

salaries and also withdrawn very basic amenities like Water Supply, Sanitation and
Ration and no Rehabilitaion is done sofar.
Govt, of Karntaka has not restored Water Supply, Sanitation and Ration sofar.

It

has neglected the fundamental rights of citizens.

Hence, u)e the BGML WORKERS voluntarily Boycotting this ensuing Parliament /
Assembly Elections with this Mass Signatures and a huge Mass Rally taken out on 24-3-2004
to protest against the Anti-Worker Policy of the concerned Governments, especially towards
the scheduled caste community of KGF Constituency.
We are not against the system of Democracy, we are constrained to take this decision
because of the total failures on the part of the both Central & State Governments in taking
care the welfare of the People.
Encl : Signatures of Citizens (Voters)
of KGF Constituent
-—

SG

J
F r orn

6-11-2Uu4.

Jint.rHRY AM IT HA,
Jamuspaul hajf
u/o late
block Ha lay a lee
• □.27, 'tP
Champion Kee f, K.G <F •

Line t

T

* he Superintendent of Police*.
Champion RueftK.G.F •
Ha3 ua eta d 3 ir >

Subs

1 regret to
j r i •Camus pa cl

Request to’issue the f Ift coHy of
my husband’s suicide case ivc.UUH.8
registered at Champion Ruef Police
Scat ion - Reg.

inf om you that, es my husbanci

Raj, yas suicide

on 13.1U.2UU4 in our house

K ■- 1

and died.
Rilice

A

been registered

^cation, vide case

in this

arran.je

case has

connection,

to issue

the

in the

ko.(FlR) UUR No.0.
v
I raquast your goodoelf

copy

of the FIR

Champion Reef Police ->tat ion and

oblige.

Your^ faithfuliy,

Umt.flANY ANITHA)

IF
&

.

<

■<

• ' lr i ®

if
i.

kindly

registered at the

1 hanking you.

I

Champion Reef

J .
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Page 1 of 1

y

As,

il zaA sigh for the
•■
valley of gold
MP:

;

.,t te .......

1

SJ> I.Slai™*“«bAlaMiMCrti
savrt

..................
wodd have felt to know
chat the

dered how

I

Plhirs WOHbl 1>P

*

T- —

fumbling
carrying
helmeted
workers
up
|nd
downcagei
sUerterf
forever.
Thctii^^.
he
is
rr .
|w is

/no longer theVe to>ee these things
We went back to the old house with its
tiled roofs and qumnt venldators. Strangers
looked at us curiously, unable to understand
our emotions as we stood under the jotnegranate tree remembering how their blood red
seeds
sevds ixjdttd
mcitvd in the mouth. At
Al the old
o!d school
the newnew inhabitants were amused to see us
ns

CSnSffiSftS

1

&1

------ livVMS\LS.VEDANTAM------

lenge was to .w’l
>»"“
ft

.................
Abrue. The old pharmacist whn USed to point

A peaceful colony

ourraw,
*roaF*llhI"?f'?,rK‘he
^i’s^s^,a
tion master who waited till
were all safely



VM1 |ra„

aboal-d b^fi(^ fl3ggmg tifT EhG n.2.n

K
G was cur own grew vaUey where rime
KGF
5
toSa
no.MH!g
cottace'
tains. But that’s because they did not know lhe
excitement of hurtling down $000 fret below
the ground to pick up a black stone which
flashed like Excal,bur as you turned it this
way and that They bad not sren It^id gold

also
tlira
WiAvmg the red arid
bod >d

si2^SE.S.£^,« SMS
. unsa.in.b’st,arts. M£?'.an.st. ~

»v •ror* "■“i “"wr-^’S'
Mine club, the Champion Kerf hospital, the tram lines »i £ M bf
t.lS' Shg
Oo^dr^stufta/t^Marikuppam railway
lniTC.rs wlth their haversacks and
not eT^ricncwi
station.
usre'.aU
there exactly
e.vcriy as we itoteres. whad
siatjon. They
Ihey were
sU ilwre
L...1
.cr.:.;/......: “thTmagic
:U .;.™.
.
______ •
....
:__ a.. . ...u.......... ..........
ffi&inbcred them. Only, thh; people whom we of
Up in _a ...a.
mining
town where you
kniiW
h o hMpruI librarian, Stan
... t cvcryihinu*
.
..-t*. . with
. ■■i. ______
____ Where isi.
knew u.'*rrt
« ere oil
aU mtm*'
gone. T
The
<...t
shared
everyone
life
'
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■■y.y
14.

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» » 'm*1**.^. •*-'< •

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- • *-» < K. -<

I T'-'

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Stiers exhort pwpl
Wkarn/ That was rl
KGF would never agt
m2. Now, mm
’J*’t

I

‘“l masters,
the black and white f
he sighs: ”1

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'hi'-. •':<'h;'//• • .■

10/7/04

Kolar Gold Fields , KGF - A Colonial Mining Settlement near Bangalore

Page 5 of 5

through the mght.
Entrance:
• Rs.25/00 per head for Members of KGF
• Rs. 100/00 per head for Members from Bangalore
• Rs. 200/00 per head for Members who are from abroad and on a visit to KGF /
Bangalore
• Children upto the age of 12 years ... FREE
• The above rates include DINNER and a complimentary DRINK

For Reservations:
Please Contact: Mr. D.J. King, Phone: 361940, KGF; Mr. Clinton Kelmen, Phone:
9845105922, Bangalore
Please Note: Reservations shouold be made on or before January 7, 2003 Final.
Entrance not available at the door for any late comers.
Executive Committee:
Dr. G.W. Dias, Phone: 360038, Mr. W. Orton, Phone: 360622, Mr. D.J. King, Phone:
361940, Ms. Sheola Monisse Phone: 360162.
A newspaper cutting, Deccan Herald 29th April 2000, Vatsala Vedantam
I spoke to the (Late) Bill Richards, ex-President of the All India Anglo Indian Association (KGF
Branch), he said that he would give me some material, unfortulately this did not materialize, and
so if anyone else can give me the same information, please do. Ronnie
People who have sent in their contributions regarding requests for family information,
records, and about people present, past and overseas. Also photographs.
[CLICK HERE TO GO PEOPLE FROM KGF]
AND[CLICK 1 U RL FOR DIRECTORY AND LIST OF RESIDENTS OF KGF IN 1905]
THE KGF PHOTOGRAPH COLLECTION
(Page is being updated all the time, but I need inputs and photographs from people of
KGF to make it happen, can you help?, We need photographs of various mines, group
photos, cemetery photos, events, weddings etc, lets make it a 'family' page, even those
of you around the world who would like to 'update' others on your appearances and
families, most welcome to send photos, news .. [max file size of each photo should be
around 40K at 72dpi format .jpg for best viewing and downloading, number of photos not
a problem]. If anyone can give me a good contact at KGF where I can collect inputs, and
be able to stay a day or two, with someone local to take me around the place, I will make
an effort to gather as much as I can and perhaps make a new site if space is required)
Ronnie
Ron's new e-mail: Ronnie 2

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