CHAPTER - VI
E. Bharat Gold Mines Limited
- Note: The company was reffered to BIFR in 1992 when
its net worth became negative. BIFR in its final order dated 12/06/2000 has concluded that
the company is not likely to make its net worth exceed its accumulated losses within a
reasonable time while meeting its financial obligations and hence, not likely to be viable
in future. Therefore, it is just, equitable and in public interest to wind up BGML under
section 20(1) of SICA, 1985. BIFR has forwarded its opinion on 30.06.2000 to High Court of
Karnataka at Banglore. Besides this, the company stands closed w.e.f. 1.3.2001 under
section 25(0) of Industrial Disputes Act, 1947. However, the employees of the company have
challenged the BIFR's order and the order of the Ministry of Labour in the High Court of
Karnataka where the case is subjudice.
1. Introduction :
1.1 Bharat Gold Mines Limited (BGML) became a Public Sector
Undertaking under the Department of Mines in 1972. It is primarily engaged in mining in
its captive mines in Kolar Gold Fields (KGF), Karnataka and Andhra Pradesh and production
of gold in KGF. As a diversification measure, the Company also undertakes mine
construction, shaft sinking, manufacture of mining machinery and other fabricated items
for outside clients for which it has set up a Mine Construction and Engineering Division.
2. Present Scenario:
2.1 BGML is a sick company and is before the Board for Industrial
and Financial Reconstruction (BIFR) since 1992. During June, 1997 the Government decided,
inter-alia, to explore the possibility of rehabilitating BGML through joint venture route
by induction of a private co-promoter(s). Accordingly, a Committee was constituted, which
has since given its report. The future of BGML will be decided as per the provisions of
Sick Industrial Companies (Special Provisions) Act, 1985.
3. Production Performance:
3.1 The quantity of ore milled, gold and silver extracted during
1997-98 and 1998-99 (April - Dec., 1998) are given below:
| |
Actual
- 97-98
|
Target
- for 98-99
- (Revised)
|
April-
- Dec., 98
- (Actual)
|
Jan.,99 to
- Mar.,99
- (Anticipated)
|
| Ore Milled (Tonnes) |
151,381 |
174,470 |
115,085 |
59,385 |
| Gold Extracted (Kg.) |
514.17 |
550.00 |
404.1 |
145.90 |
| Extraction Grade (g/t) |
3.24 |
3.03 |
3.36 |
- |
Silver Extracted (Kg.)
- (by-product)
|
43.90 |
- |
32.10 |
- |
4. Financial Performance:
4.1 The authorised share capital of the Company is Rs. 60 crores and
paid up share capital is Rs. 51.06 crores as on 31.3.1998. The working results of the
Company for the last two years and current year upto December, 1998 are as follows:-
Loss
(Rs. in lakhs)
1996-97 : 5379.94
1997-98 : 3983.40
1998-99 : 4992.74
- (upto Dec., 1998)
4.2 Sources of Funding:
As the Company is continuously incurring losses and unable to
generate any internal resource, the investment on the capital schemes is met by the
Government as Plan loans. The Government has approved an outlay of Rs. 450.00 lakhs as
Plan loan towards the capital expenditure during 1998-99. Besides, the Government has
provided for non-plan loan of Rs. 16.55 crores during the current year.
5. Diversification:
5.1 The Company is diversifying its activities in the following
fields:
1) Shaft Sinking and Mine Construction.
ii) Manufacture of mining equipment and fabrication and machining of
components.
6. Shaft sinking and mine construction:
6.1 The Projects and Contracts Division established in 1973 has been
taking contract jobs in shaft sinking and mine construction activities for various mining
companies in both coal and metallic ore mines in the country.
6.2 The Division has so far completed 68 jobs valued at Rs.107.74
crores for its customer companies spread all over the country. It is executing 5 contracts
at present valued at Rs.23.30 crores. In addition, contracts valued at Rs.13.00 crores are
under negotiations.
6.3 This Division endeavours to maximise its revenue thereby sharing
the Company's fixed costs. The company envisages undertaking contracts of high value and
to execute the jobs by sub-contracting to local contractors wherever possible to cut down
operating costs.
7. Manufacture of mining equipment AND fabrication of components:
7.1 As part of the diversification activity and to generate
additional revenue from the workshops, engineering jobs are undertaken viz. manufacture
and sale of mining machinery and equipment like winders, suspension gears, head gear,
man-riding systems, skips, ore-bins, various safety gadgets, battery operated locomotives,
mine car circuit systems, material handling systems, electro winning cells, "GOLD
DRILL", TCT rods, etc., besides jobbing work like fabrication and machining for other
major industries.
7.2 The Engineering Division has achieved a production value of
Rs.220.71 lakhs during April, 98 to Dec., 98 besides catering to its captive needs of the
metallurgical and mining operations at KGF and other project sites all over India. The
production value for the year 1998-99 is estimated at Rs.400.00 lakhs.
7.3 The Engineering Division has secured orders worth Rs.313.64
lakhs during April 98-Nov 98. BGML has been awarded, as a result of their participation in
a tender process, developmental order for 60 nos Boxn Type Wagons in February 1998 for a
total value of Rs.297.79 lakhs of which three proto-type wagons have to be manufactured
and approved by the RDSO, Bangalore, before executing the balance quantity. Necessary
infrastructure facilities have been completed and orders for certain critical bought-out
items like bogie, couplers, draftgear, braking system etc. have been placed. After
approval of 3 proto-type wagons by RDSO, the balance 57 wagons would be taken up in the
second phase to complete the work order in full.
8. Achievement during 1998-99:
8.1 The sales made upto October 1998 and orders position on hand by
end of Dec., 1998 are as follows:-
Description
- No.
|
Orders on
- hand value
- (Rs. in lakhs)
-
|
Cumulative orders
- executed(April-Dec. 1998)
- (Rs. in lakhs)
|
| T.C.T. Drill Rods |
18.32 |
26.15 |
| Workshop Sales |
1018.83 |
194.56 |
| Total |
1037.15 |
220.71 |
9. Exploration Activities:
a) Chigargunta Mine, Chittoor District, AP:
The primary level development activities were continued in 4th level
of IIIE & IVE Block and 5th level of South Boundary Block on E-2 lode. The ore body
delineation works were continued in VE Block. In addition to the above, the stope
preparatory development works were carried out in different blocks on E-2 lode.
b) Old Bisanatham Mine, Chittoor District, AP:
The primary level development works were carried out in 260', 350'
and 425' levels north of Downnight shaft. Stope preparatory developments i.e. finger
raises and sub-level were carried out between 260' and 425' levels.
c) Nundydroog Mine, Kolar Gold Fields, Karnataka:
The underground developments were related to mainly stope
preparatory works in the form of sub-levels and raises in G (Top), G (bottom) and J
(North) sections.
d) Yeppamana Mine, Anantapur District, AP:
There was no primary level development. The underground development
related to stope preparatory works in the form of sub-level, raises and orebody stripping
to convert the stope block ready for production between 6th and 7th levels in BG ore shoot
of the mine.
9.1 Geological Services:
Geological services were extended to sampling in mills, metal
balance studies and updating the status of ore reserves of the mines.
10. Environmental Protection:
10.1 The Company has taken up afforestation programme on tailing
dumps as a pollution control measure and on the barren lands to improve the ecology in a
phased manner. Different species like Eucalyptus, Sandalwood, Accacia, Aurculiformis,
Sissoo, Bevu, Honge, etc., have been planted over 3230 acres of land so far at Kolar Gold
Fields and Gadag in Karnataka and Ramgiri, Old Bisanatham and Chigargunta in Andhra
Pradesh.
11. Pollution Control:
I. Domestic Water Treatment:
The effluent after treatment is collected in the oxidation ponds
constructed in Mysore Mine, Champion Reef and Nundydroog mine areas. These works have been
carried out as per the recommendations of Karnataka State Pollution Control Board and
National Environmental Engineering Research Institute. A Water Treatment plant has been
setup at Chigargunta mine to provide potable water to the employees.
II. Industrial Effluent Treatment:
Additional three bunds to prevent overflow of slurry, have been
constructed over the tailing bund at Nundydroog Mill area. One earthen dam has been
constructed near Mysore Mine dump area to prevent washing away of tailings due to rain.
12. Industrial Relations:
12.1 Welfare of SC/ST Tribals and Minorities:
There are directives/guidance from the Ministry of Social Justice
and Empowerment with regard to preparation of sub-component plan for Scheduled Caste and
tribal sub-plan for Scheduled Tribes. This is linked with rehabilitation of tribals on
account of land acquired for the project. BGML has not acquired any land causing
displacement of tribals for the construction of projects and hence no plan for
rehabilitation has been drawn.
12.2 Minority group members have been nominated to represent in
recruitment and promotion committees to safeguard the interest of minority groups. Their
grievances are promptly attended to and settled.
12.3 Recruitment of minorities and SC/STs in the PSEs:
During the period, no recruitments were made.
12.4 Employment of SC/ST as on 31.12.1998.
| Group |
Total employees |
SC |
% |
ST |
% |
| A |
123 |
27 |
21.95 |
4 |
3.25 |
| B |
30 |
8 |
26.66 |
- |
- |
| C |
2342 |
920 |
39.28 |
18 |
0.77 |
| D |
1871 |
1100 |
58.79 |
23 |
1.26 |
| Total |
4366 |
2055 |
47.06 |
45 |
1.03 |
No. of employees -
Technical & Non Technical as on 31.12.1998 were as follows:
Technical --- 2311
Non-Technical --- 2006
Total --- 4317
13. Family Welfare Measures :
13.1 Perspective Plan for Women's Welfare:
As a part of 20 point programme, a separate cell known as Community
Development Cell was formed in 1987 to encourage certain self-employment programmes. At
present 40 ladies are engaged in weaving, manufacture of handgloves, helmet, liners,
phenyl, etc.
14. Power Consumption :
14.1 There was an increasing trend in the consumption of power
during the period April to October 1998 by 6.14% as compared to the previous year. The
details of power consumption are given below:
| Year |
Units consumed
(in lakhs) |
Anticipated increase
- during
- 1998-99
- (lakhs units)
-
|
% of
- anticipated
- increase during
- the year
-
-
|
1997-98
- (April-March)
|
353.24 |
42.45 ** |
12% |
1998-99
- (April-March)*
|
395.69 |
42.45 ** |
12% |
*Actual consumption from April to October 1998 and estimate for
November 1998 to March 1999.
**The increase in consumption of power was mainly due to pumping
operation from mines at KGF.
15. Progress made in the use of Hindi in the enterprise:
15.1 The Company has made satisfactory progress in the propagation
of Hindi as per the provisions of Official Language Act and Rules made thereunder during
the year 1998-99. Incentive schemes of the Government of India have been implemented. The
employees who have typed their Official Letters in Hindi were awarded special incentives
under Quarterly Hindi Typewriting Incentive Scheme. To popularise Hindi among employees,
competitions in Hindi Shorthand, Noting and Drafting, Letter writing and Essay were
conducted. The Hindi Diwas was celebrated on 14th September, 1998.
16. Sadhbhavana Day Pledge:
16.1 All employees of BGML collectively took the pledge at their
respective working places on 31.8.1998 (Sadhbhavana Diwas) to work with dedication and
desist from violence and resolved to solve all their grievances by peaceful and
Constitutional means.
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