India took over Kolar soon after independence in 1947, but struggled to profitably mine the reserves. In 2001, Bharat Gold was forced to cease operations due to mounting losses, the result of a large, unproductive workforce and dated, economically unviable methods of mining.
Over the next 15 years, successive federal and state governments have tried to revive the mines or to sell them off, often disagreeing on the course of action and taking their disputes to the courts.
The two have to agree because the Central government has the “surface right” over the mines, but Karnataka is responsible for granting the licence to operate there. In 2013, Karnataka let Bharat Gold’s mining lease expire.
Now, both the Central and the state governments want to have another go at reviving the mines, hoping to learn from past mistakes, according to the briefing document and the officials. The federal government has already sent a request to Karnataka to renew Bharat Gold’s mining lease.
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(Sourced from agencies, feature image courtesy:wikivisually.com)
