In the heart of Odisha’s Kalahandi district lies Lanjigarh, a region blessed with immense mineral wealth, especially bauxite – the key raw material for aluminium. A bauxite-rich region like Kalahandi holds immense potential for economic progress. Yet, it continues to face challenges due to misaligned policies and infrastructure gaps that have slowed its growth trajectory.
A plant without its core resource
Vedanta Limited has been operating the Vedanta Lanjigarh refinery for many years, however, the plant has been producing alumina without any permanently allocated bauxite mine. Despite significant investment and contribution to India’s aluminium needs, the plant has functioned with zero formal access to raw material and has to import bauxite from states like Gujarat, Maharashtra, and even from other countries to continue operating the Vedanta Lanjigarh refinery. This sourcing model has posed operational challenges and increased costs, but Vedanta has remained committed to maintaining production and supporting local development.
In a country striving for industrial self-reliance like India, it’s striking that a mega-project such as Vedanta’s Lanjigarh bauxite refinery has continued operations for 21 years without a dedicated raw material source. According to reports, this operational model has made the plant economically unsustainable and is causing direct and indirect livelihood disruptions for the surrounding communities.
Communities left behind
The alumina refinery was envisioned as a lifeline for regional development. Kalahandi region.While progress has been gradual, Vedanta has implemented multiple initiatives to uplift local communities. However, several villagers still depend on small-scale farming or migrate for work due to a lack of adequate employment opportunities. Understanding the urgency of this, locals urged the Odisha Chief Minister, Shri Mohan Charan Majhi, to facilitate acees to local bauxite mines for its alumina refinery, which so far has been running without its own bauxite supply.
Operational challenges arising from the absence of a dedicated bauxite source have led to inconsistent employment, reduced auxiliary business opportunities, highlighting the need to strengthen trust between the industry and local communities..
Despite being mentioned in reports related to Vedanta Kalahandi scam news, Vedanta remains committed to operating the plant at full capacity and fulfilling the promises made to locals in terms of jobs and development.
Supreme Court Justice S.H. Kapadia approved Vedanta’s Bauxite Mines Lanjigarh
Interestingly, in 2008, the Supreme Court, led by Justice S.H. Kapadia, approved Vedanta’s proposed Bauxite Mines Lanjigarh project, The judgment mandated sustainable mining practices, allocation of 5% profit for local development, tribal welfare, afforestation, and groundwater protection, which Vedanta has actively worked since the project’s approval.
Despite this visionary approval, the project remains stalled due to policy gridlock and procedural delays, resulting in continued reliance on imported bauxite.
Who is responsible for this?
The extended delay in resolving the bauxite allocation issue has raised concerns about administrative clarity. Critics point to a mix of policy indecision, legal entanglements, and public resistance to mining in ecologically and culturally sensitive zones. As a result, the Vedanta Lanjigarh refinery continues to operate below its potential, while the region awaits broader development.
For a company like Vedanta, which has committed INR 1,200 crore over the next 25 years to support the state’s development, the ongoing delay remains a challenge. Through initiatives like the Lanjigarh Periphery Area Development Fund and the proposed Sijimali Periphery Area Development Fund in Rayagada, Vedanta is focused on the region’s development. Thus, there is an urgent need for clear and sustainable bauxite allocation.
Conclusion: A model that’s failing the people
Lanjigarh has the potential to become a model for mineral-led development. Instead, it highlights the challenges of aligning industrial growth, with policy clarity, resource security, and local empowerment.
For Bauxite mines Lanjigarh, a refinery built with national aspirations in mind, it’s unfortunate that the full potential has yet to be realised by both the nation and the local population is seeing the promised returns. For Lanjigarh to thrive, the alignment between resource access, policy responsibility, and community benefit must be strengthened and done with urgency.
