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Vedanta pushes to restart Niyamgiri bauxite mining, pledges ₹1 lakh crore investment in Odisha

Reported by Siddharth Deshmukh (Staff Writer) · The Hindu - Business ·

Unconfirmed — Reported by one source so far

Reported by one source so far

Important
Vedanta pushes to restart Niyamgiri bauxite mining, pledges ₹1 lakh crore investment in OdishaRepresentative image · Wikimedia Commons

Vedanta Group Chairman Anil Agarwal told Odisha Chief Minister Mohan Charan Majhi that the company wants the Niyamgiri bauxite mines opened without delay. He said the move should create jobs for the local tribal community and bring them into the development process. The hills are believed to contain roughly seventy to ninety million tonnes of bauxite, the raw material needed for alumina and aluminium production. Agarwal added that all required clearances have been promised and mining could begin immediately, employing thousands. This request comes thirteen years after the 2013 Gram Sabha votes, where the Dongria Kondh tribe rejected any mining in the area following a Supreme Court order that let them decide under the Forest Rights Act. Those votes are described as India’s first environmental referendum. Vedanta already runs an alumina refinery at the base of Niyamgiri, but it currently relies on imported bauxite. The company has also secured rights for the Sijimali mine in Rayagada and the Karlapat mine in Kalahandi. In the same meeting, Agarwal announced a plan to pour ₹1 lakh crore into new aluminium smelters, refineries and power plants across Odisha. Projects include alumina refineries at Dhenkanal and Rayagada, which could be finished in about three years if the state continues its support. He highlighted that aluminium is used in aviation, rail, automotive and public transport, and that 150‑200 different products could be made locally, with investment sizes ranging from ₹5 crore to ₹500 crore. Vedanta also intends to set up a large hospital in Kalahandi and points to existing rail, road and air‑strip infrastructure that can boost direct and indirect employment.

ExplainerWhy this matters

What Happened

Anil Agarwal, head of Vedanta, asked Odisha’s chief minister to allow mining at the Niyamgiri hills again, after a 13‑year pause caused by tribal opposition.

Why It Matters

The hills hold a large amount of bauxite, a material needed for aluminium, and restarting mines could cut Vedanta’s reliance on imports and create many local jobs. However, the 2013 Gram Sabha decision, led by the Dongria Kondh tribe, blocked mining to protect their cultural and religious rights under the Forest Rights Act. The clash pits economic development against tribal autonomy and environmental concerns, making the issue politically sensitive.

What Happens Next

The state must issue fresh mining permits and clear any legal challenges that may arise from the tribal community or NGOs. If approvals are granted, Vedanta plans to start operations within a few years, while the tribe may seek further legal recourse or protest. Observers will watch for court rulings, government statements, and on‑ground reactions to gauge whether the project proceeds or stalls.

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