Odisha government clears key way for Vedanta mining project

A villager levels his agricultural field before cultivation at the foot of the proposed Sijimali bauxite mine in Rayagada district. | Photo credit: Biswaranjan Rout

The Odisha government has given permission for the construction of a road connecting State Highway 44 and Sijimali hill top to facilitate transportation of bauxite in Kashipur block of Rayagada district.

Sijimali, with an estimated 311 million tonnes of bauxite, was awarded to Vedanta in March 2023. The mineral is critical for the Vedanta group to keep its Lanjigarh alumina refinery operational. However, the project has since faced opposition from local people who fear that the mining activity could dry up streams and adversely affect their livelihoods.

For several months now, the villagers have been living in makeshift shelters on top of the hill and have been keeping a round-the-clock vigil to prevent the construction of a road from Bichhapinda along SH-44 to the top of Sijimali hill.

State-owned Odisha Industrial Infrastructure Development Corporation (IDCO) has requested diversion of 4,911 hectares of forest land for construction of an access road from Sijimali (Hill Top) Bauxite Mines to SH-44 to facilitate transportation of bauxite.

The Union Ministry of Environment, Forests and Climate Change gave approval (in principle) for diversion of forest land in January 2026.

Subsequently, subject to compliance with the conditions laid down in principle of Phase-1, the Ministry granted Phase-ll approval (final) under Section-2 (1) (ii) Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 for non-forestry use of 4,911 hectares of forest land as on May 206, IDCO.

After final approval, Odisha government has now allowed non-forest use of 4,911 hectares of forest land for road construction.

“The Collector of Rayagada and the Divisional Forest Officer are empowered to hand over the forest land under their jurisdiction as finally diverted after necessary compliance in accordance with due law. Before handing over the diverted forest land to the user agency, it must be ensured that the net present value of the forest land for this project for which approval has been obtained is deposited in full at the appropriate rates,” the State Govt.

The approval comes as a major relief to the Vedanta Group, which has long sought to have a dedicated source of bauxite closer to the Lanjigarh refinery. The company has been operating the refinery for more than two decades by sourcing bauxite from both domestic and foreign sources.

Sijimali is expected to help bridge the feedstock gap, especially as the company looks to expand its refining capacity from 2 million tonnes per annum (MTPA) to 6 MTPA at Lanjigarh, which would require up to 18 million tonnes of bauxite per annum.

Published – 31 May 2026 20:06 IST