Odisha government clears key road for Vedanta’s mining project

SMW Media Team
5 Min Read

The Odisha government has granted permission for the construction of a road connecting State Highway 44 to the Sijimali hilltop in Rayagada district, a critical infrastructure project for Vedanta Group’s bauxite mining operations .

The State-run Odisha Industrial Infrastructure Development Corporation (IDCO) had applied for diversion of 4.911 hectares of forest land for the access road. The Union Ministry of Environment, Forest and Climate Change granted Stage-I in-principle approval in January 2026, followed by Stage-II final approval on May 6, 2026 . Following the final clearance, the Odisha government formally authorized non-forestry use of the forest land on May 27 .

The strategic importance for Vedanta

Sijimali holds an estimated 311 million tonnes of bauxite and was allocated to Vedanta in March 2023 . The mineral is crucial for keeping the company’s alumina refinery at Lanjigarh operational. For over two decades, Vedanta has run the refinery by sourcing bauxite from within the country and abroad. Sijimali is expected to help bridge the raw material gap, especially as the company plans to expand refinery capacity from 2 million tonnes per annum (MTPA) to 6 MTPA — a move that would require up to 18 million tonnes of bauxite annually .

The access road, approximately 3 km long, will connect the hilltop mining area with SH-44, linking to a nearby railway siding for bauxite transportation . The Odisha government has also committed to reviewing Vedanta’s broader ₹1 lakh crore investment projects every fortnight to ensure timely execution .

Environmental conditions and costs

The final clearance comes with an extensive set of environmental safeguards. The user agency — Vedanta — must bear the cost of Net Present Value (NPV) for trees to be felled and for compensatory afforestation over 6.07 hectares of non-forest land identified in Rayagada district, plus additional afforestation over five hectares of degraded forest land in Pedakonda Reserve Forest .

Other conditions include geotagging and monitoring of plantations, demarcation of diverted forest land with concrete pillars, and full compliance with the Forest Rights Act, 2006. Indigenous tree species must be planted along both sides of the road to mitigate dust pollution, and wildlife crossings or underpasses must be provided where necessary .

Despite the government’s approvals, the project has faced sustained opposition from local tribal communities, particularly from the Kandha and Paroja tribes who depend on the forest for their livelihoods and hold religious beliefs tied to the Sijimali hills, which they consider the abode of their presiding deity “Tiriraja” .

In April 2026, violent clashes broke out between police and villagers in Kantamal and Sagabari villages in Rayagada district, leaving around 70 people injured . Villagers alleged that police entered their village around 3 am, cut electricity, broke doors, and detained residents opposing the road project .

The legal challenge continues. Four local residents have filed a petition before the National Green Tribunal‘s Eastern Zone bench challenging the forest diversion approvals. The NGT has admitted the petition and posted it for hearing. The Odisha government‘s own approval order notes that the validity of the Stage-II clearance will depend on the outcome of these pending NGT proceedings . Additionally, a separate petition in the Supreme Court relates to the mining lease itself .

The project has also raised questions about IDCO‘s mandate. Critics argue that IDCO — meant to develop industrial infrastructure — is acting as a facilitator for Vedanta’s mining project, potentially circumventing Gram Sabha consent requirements under the Forest Rights Act and PESA Act, which apply to Scheduled Areas like Rayagada district .

A fact-finding mission by the Congress party in April alleged “serious irregularities and violations of due process,” including claims that eight Gram Sabhas held in December 2023 were “false and fabricated” .

The road ahead

With final forest clearance now in place, road construction is expected to proceed subject to compliance with conditions and the outcome of the NGT proceedings. The Public Works Department will construct the approach road . Meanwhile, Vedanta has also received an expert panel’s recommendation for environmental clearance for the Sijimali mine, though final clearance remains conditional on the pending legal cases .

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