What Kalahandi stands to gain from its bauxite reserves

THEBUSINESSBYTES BUREAU

BHUBANESWAR, MAY 27, 2025

In the heart of Odisha lies Kalahandi, a region abundant in heritage, resilience, and natural wealth. Yet, despite its potential, it remains one of the most underdeveloped areas in the country, long associated with poverty, deprivation, and despair. For decades, families here have struggled for survival, mothers have been forced into heart-wrenching choices just to feed their children, and infant mortality rates have remained alarmingly high. Beneath the hills of Lanjigarh, however, lies a promise of change — vast reserves of bauxite that could transform the socioeconomic landscape of the district.

While some degree of industrialisation in Lanjigarh has already brought tangible benefits in health, education, and livelihoods, the broader promise of progress remains unfulfilled. These mineral reserves, rich in potential, continue to lie dormant, and with them, the hopes of a dignified and prosperous future for Kalahandi’s people. The delay in operationalising these resources is not merely an economic oversight — it is a denial of opportunity, especially for the scheduled areas and tribal communities that call this region home.

According to statutory guidelines, any project developed around the Lanjigarh bauxite reserves is required to allocate 5 per cent of its net profits towards local development. These funds are specifically intended to enhance healthcare, education, infrastructure, irrigation, and agriculture. The scale of impact such development could have is enormous. Just a single year of profits from a large-scale project could finance modern hospitals equipped with the latest technology, fully staffed schools, well-constructed roads connecting remote villages, and irrigation systems that could transform barren fields into fertile agricultural land. Most importantly, it could empower the youth of the region to build brighter futures for themselves.

To ensure that this development is both responsible and sustainable, the project has been subjected to some of the most rigorous conditions in the country. These include mandatory compensatory afforestation using indigenous species, with forests managed as protected zones. The project must also undertake phased reclamation of mined-out areas, using overburden backfill to restore ecological balance. Detailed hydrogeological studies are required to protect water quality and maintain stream flows, while scientific assessments of local wildlife must be conducted in collaboration with national research institutions.

Besides, the development of green belts and safety zones is mandated, with long-term maintenance under the Forest Department, funded by the industries themselves. The project also includes comprehensive provisions for the rehabilitation and resettlement of displaced families, aligned with Odisha’s 2006 policy. Beyond environmental stewardship and social safeguards, industries involved have committed to paying the Net Present Value (NPV) for diverted forest land, implementing a detailed Wildlife Management Plan, and supporting targeted tribal development initiatives.

The tribal development plan outlined in the project is more than a formality. It is a holistic blueprint aimed at integrating tribal customs, preserving cultural heritage, and promoting sustainable livelihoods. It seeks to ensure that progress does not come at the cost of identity but rather uplifts indigenous communities in a way that is respectful and enduring.

Perhaps the most profound tragedy in this ongoing delay is not the untapped mineral wealth, but the unrealised potential of the people themselves. Every year of inaction means yet another child walks miles to a crumbling school, another family makes a long and treacherous journey to a poorly equipped health clinic, and another farmer waits in vain for water to reach his drought-scorched field.

The operationalisation of the Lanjigarh bauxite mine is no longer just an economic opportunity — it is a moral and developmental imperative. It is a chance to empower Kalahandi to chart its own course, to break free from its history of neglect and emerge as a symbol of inclusive, sustainable growth. The hills may be silent, but the voices of the people are not. It is time we heard them — and acted.