THEBUSINESSBYTES
BUREAU
TALABIRA (ODISHA),
JANUARY 28, 2026
The illegal
and forceful shutdown of the Talabira II and III Open Cast Project mines has
triggered a cascading economic, social and energy crisis in western Odisha,
severely impacting livelihoods, power supply chains and government revenues.
The mines have remained shut since January 20 following an unlawful stoppage by
certain groups from Patrapali village who allegedly halted operations by
intimidation and coercive demands, creating an atmosphere of fear among workers
and contractors.
Owned by NLC
India Limited, a Central Public Sector Undertaking under the Government of
India, the Talabira II and III mines have been operating successfully for the
past five years, supplying coal to consumers across Odisha and several other
states. The project has played a crucial role in local socio-economic
development, generating employment for several hundred local residents and
project-affected persons while supporting a wide ecosystem of ancillary
activities.
The
prolonged shutdown has already dealt a severe blow to workers, with more than
1,200 employees losing wages after contractors were compelled to enforce a “No
Work–No Pay” regime. Families dependent on daily earnings are facing mounting
financial distress, while uncertainty over the resumption of operations has
deepened anxiety across the region. The disruption has also stranded nearly
2,000 trucks engaged in daily coal transportation, inflicting heavy losses on
transporters and allied service providers.
Beyond the
immediate livelihood impact, the stoppage has begun to strain the power sector,
with coal supplies to major utilities such as NTPC, Damodar Valley Corporation
and NTPL being affected. Industry sources warn that prolonged disruption could
pose risks to uninterrupted power generation across multiple states, especially
at a time when demand remains high.
The shutdown
is also resulting in significant losses to the exchequer, with revenue from
royalty, District Mineral Foundation contributions, National Mineral
Exploration Trust payments, GST and other statutory levies taking a direct hit.
Equally affected are ongoing corporate social responsibility initiatives at
Talabira, including health, education and community development programmes,
which have been brought to a standstill.
Authorities
are increasingly concerned that continued joblessness and financial pressure
could escalate into broader law-and-order issues in the area. Reflecting the
growing desperation on the ground, hundreds of workers on Tuesday submitted a
representation to the district administration, urging immediate intervention to
restore operations and safeguard their livelihoods.
As the
shutdown drags on, stakeholders warn that swift administrative and legal action
is essential not only to protect workers and local communities but also to
prevent wider repercussions for the state’s economy and regional power
security.
