Vedanta seeks Niyamgiri mining revival, pitches ₹1 lakh crore Odisha investment

Vedanta Group Chairman Anil Agarwal on Saturday sought the reopening of the Niyamgiri bauxite reserves in Odisha, nearly 13 years after mining plans were shelved following opposition from the Dongria Kondh community, a Particularly Vulnerable Tribal Group (PVTG).

“The discussion (with Chief Minister Mohan Charan Majhi) today was that Niyamgiri would be reopened immediately. The tribal population there should be given employment opportunities and brought into the development process,” Mr. Agarwal said after discussion with Odisha government at State secretariat.

The Niyamgiri Hills are estimated to hold 72 million-88 million tonnes of bauxite, a key raw material for alumina and aluminium production.

“The Niyamgiri bauxite reserves that were guaranteed to us should be opened to mining. We have been told that all the necessary permissions currently required will be granted immediately so that we can start mining there and provide employment to thousands of people,” he said.

The proposed mining revival, however, comes against the backdrop of the 2013 Gram Sabha decisions that rejected mining in the Niyamgiri Hills. The Gram Sabhas were convened following a Supreme Court ruling that gave affected communities the authority to decide whether the proposed project would infringe upon their religious, cultural and community rights under the Forest Rights Act, 2006. The process was widely described as India’s first environmental referendum.

The push to revive Niyamgiri comes as Vedanta seeks to secure domestic bauxite supplies for its expanding aluminium operations while Odisha seeks to deepen mineral-based industrialisation.

Vedanta had earlier established an alumina refinery at the foothills of Niyamgiri, which currently relies largely on imported bauxite. The company has subsequently won bids for the Sijimali bauxite mine in Rayagada and Karlapat mine in Kalahandi.

Mr. Agarwal also outlined an ambitious expansion plan for Odisha, saying the Vedanta Group is committed to investing ₹1 lakh crore in aluminium smelters, refineries and power plants in the state. The group plans to establish an alumina refinery in Dhenkanal and another in Rayagada.

“We are committed to making the investment, and work will begin immediately,” Mr. Agarwal said, adding that the projects could be completed within two-and-a-half to three years if the government continued its support.

The proposed investment comes as Vedanta seeks to strengthen its presence across the aluminium value chain, from bauxite mining and alumina refining to aluminium production and downstream manufacturing.

Mr. Agarwal said the company also wanted Odisha to develop a broader downstream aluminium industries. Aluminium, he noted, is used across sectors including aviation, railways, automobiles and public transport.

Highlighting that 150-200 products could potentially be manufactured using aluminium, he said almost every sector can support industries ranging from investments of ₹5 crore to ₹500 crore.

“We can set up downstream units on our own. But we want smaller players to set up industries and draw power and source aluminium from us,” he said.

Vedanta is also considering setting up a large hospital in Kalahandi as part of its development initiatives in the region.

Mr. Agarwal highlighted the infrastructure created around the company’s operations, including rail and road connectivity and an airstrip, and said the group’s investments could generate significant direct and indirect employment.