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Centre defers clearance for Vedanta's 700-hectare bauxite mine in Odisha

#Law & Policy#Industrial#India#Odisha
Last Updated : 4th Sep, 2025
Synopsis

The Union Environment Ministry has deferred its decision on Vedanta Limited's Sijimali Bauxite Mines in Odisha's Rayagada and Kalahandi districts, citing unresolved environmental and social issues. The Forest Advisory Committee observed that Odisha's reports did not fully address villagers' objections, including allegations of fraudulent Gram Sabha resolutions. The project involves diverting 708 hectares of forest, overlapping with elephant habitats and areas prone to severe soil erosion. Vedanta intends to mine nine million tonnes annually for its Lanjigarh refinery. The first bauxite mine, with 311 million tonnes of estimated reserves, will remain on hold until all ecological, afforestation, and community consultation concerns are resolved.

The Union Environment Ministry has postponed a decision on Vedanta Limited's plan to divert over 700 hectares of forest land in Odisha's Rayagada and Kalahandi districts for the Sijimali Bauxite Mines. Government records indicate that the delay is due to unresolved issues concerning community consent, compensatory afforestation, and ecological risks.


The Forest Advisory Committee (FAC), which reviewed the proposal in late August, noted that the reports submitted by the Odisha government did not address the concerns raised by villagers and petitioners before the Orissa High Court. Earlier this year, the court had recorded allegations that Gram Sabha resolutions supporting the project were obtained fraudulently and emphasized that affected communities must be consulted before any clearance is granted.

The project involves diverting 708 hectares from a total leasehold area of 1,548 hectares. Vedanta, which acquired the block in a March 2023 auction, plans to mine nine million tonnes of bauxite annually. This production would partly supply its six million tonnes per year refinery at Lanjigarh.

The FAC also highlighted ecological issues, pointing out that the project area falls within elephant habitats and is prone to severe soil erosion. It has asked the state government to submit a detailed erosion control plan and to obtain inputs from Project Elephant. Regarding compensatory afforestation, the panel noted that some of the proposed land overlaps with another mining project and requested site-specific reports confirming the land's suitability and that it is free from encroachment.

As a result, Vedanta's first bauxite mine in Odisha, which holds estimated reserves of 311 million tonnes, remains on hold until the state addresses all gaps identified by the FAC. The ministry's careful approach reflects ongoing attention to environmental protection and community consultation in forest land diversion cases.

Source PTI

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