Vedanta Group Chairman Anil Agarwal has requested to reopen the Niyamgiri bauxite reserves in Odisha, nearly 13 years after mining plans were halted due to opposition from the Dongria Kondh community, a Particularly Vulnerable Tribal Group (PVTG). Following talks with Odisha Chief Minister Mohan Charan Majhi, Agarwal said the government indicated it could grant necessary permissions to restart mining, with employment opportunities for local tribal communities included in the development plan.
The Niyamgiri Hills are estimated to hold 72–88 million tonnes of bauxite, a critical raw material for alumina and aluminium production. Vedanta’s alumina refinery at the foothills currently depends largely on imported bauxite. The company also operates the Sijimali mine in Rayagada and Karlapat mine in Kalahandi. Reviving Niyamgiri would strengthen Vedanta’s domestic bauxite supply as it expands aluminium operations in Odisha.
The proposal remains sensitive due to the 2013 Gram Sabha decisions, where local communities unanimously rejected mining in the Niyamgiri Hills. These meetings were convened following a Supreme Court ruling that empowered affected communities to decide whether mining would violate their religious, cultural, and community rights under the Forest Rights Act, 2006. This process was regarded as India’s first environmental referendum.
In addition to mining, Vedanta has announced an ambitious ₹1 lakh crore investment plan for Odisha, focusing on aluminium smelters, alumina refineries, and power plants. The group intends to build new alumina refineries in Dhenkanal and Rayagada, aiming to complete the projects within two-and-a-half to three years, contingent on continued government support.
Vedanta also aims to develop a broader downstream aluminium industry in Odisha. Agarwal noted that aluminium can support manufacturing across sectors such as aviation, railways, automobiles, and public transport, with approximately 150–200 types of products potentially produced. The company plans for smaller businesses to establish downstream units, investing between ₹5 crore and ₹500 crore, while sourcing aluminium and power from Vedanta.
The group is considering setting up a large hospital in Kalahandi and highlighted infrastructure needs like road and rail connectivity and an airstrip near its existing operations. Vedanta states that its proposed investments could generate significant direct and indirect employment and bolster Odisha’s mineral-based industrial development. However, the proposed Niyamgiri revival renews focus on balancing industrial expansion and raw material security with the rights, cultural interests, and environmental concerns of the Dongria Kondh community.
