Gem Laboratories was among the 22 companies that had won in the Discovered Small Fields Bid Round 2016. But, unlike other winners who signed the contract this Karnataka-based GM Group company, a new entrant in oil and gas space, attracted attention.

The reason was the ongoing controversy involving the block CY/ONDF/Neduvasal/2016 in Tamil Nadu which the company has won. Not taking the protests against exploration activity in that area lightly, company representative/associate Hariprasad told BusinessLine, “we will adopt a consultative approach.”

He said to complete the entire regulatory process will take at least six months. Asked if the company is going to apply for the mining lease permission to the State government immediately or after the issues at the ground have been resolved, he said, “We will work on both parallely.”

The issue at Neduvasal has taken a political turn. There were allegations that the State government was not informed or that permission was not taken before starting the exploration activity or putting the block under the hammer. Issues of environmental concerns and ground water were also raised.

Minister’s assurance

Dharmendra Pradhan, Minister of State for Petroleum & Natural Gas, said, “The locals at Neduvasal will be taken into confidence before drilling begins there. I reiterate that there is no threat to farm land from the exploration project.”

Pradhan also said the government has held talks with the protestors.

The GM Group that has now ventured into oil and gas is into diversified businesses with major focus on sugar, mining, education, power generation, agro industries, finance, hospitality and retail.

According to the company website, the foundation of the GM Group of Companies dates back to 1958. The group was started by Late G Mallikarjunappa, Member of Parliament, Davangere.

The contract for the field was signed by Director at Gem Laboratories, GM Lingaraju for the exploration of the contract areas at Neduvasal in Tamil Nadu.

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