Immediate and time-sensitive actions are urged by the aluminium industry experts and policymakers to explore Odisha’s bauxite reserves. This step is crucial for bolstering India’s aluminium value chain by unlocking mines, which significantly contribute to the country’s self-reliance goals under the Atmanirbhar Bharat and Viksit Bharat initiatives, by securing a stable and sustainable supply of raw materials for the country's domestic aluminium industry.
AIDENT and FIJEEHA co-hosted a national webinar where industry leaders came together and expressed the urgent need to ramp up the mine operationalisation alongside fostering growth in downstream industries, as well as push the policy reforms poised to strengthen Odisha’s role in India’s aluminium value chain.
Growth potential with effective bauxite mining
As pinpointed by the experts, tapping into Odisha’s bauxite reserves could lead to nearly 2.4 million jobs and further aid over 10,000 MSMEs by promoting localised manufacturing and setting up green industrial clusters. With the shift from simply exporting raw materials to producing value-added aluminium, advocating the establishment of Green Aluminium Parks and downstream processing hubs to foster sustainable industrial growth could be successfully achieved.
The ex-Additional Director of Mines for the Government of Odisha, Umesh Jena, highlighted that the ongoing holdups in getting mines running are restricting the region's socio-economic progress. Additionally, this further restricts viable opportunities for assistance to the District Mineral Foundation, alongside the possibility of generating royalty avenues.
Umesh Jena stated, "Odisha must take the lead in operationalising bauxite mines. Time-bound expansion of mining capacity will ensure raw material security, reduce import dependency and generate employment in mineral districts."
The Ministry of Mines drafted the outlook for the Aluminium vision, where it has highlighted that India will witness a heightened demand for aluminium, which is estimated to be more than six times. This creates an urgency to fast-track the aluminium production capacity to 37 MTPA, up from 4.5 MTPA. In order to increase the capacity, the country will require investments close to INR 220 thousand billion (USD 2.65 trillion) over the next twenty years. Odisha's rich bauxite reserves will support reaching this enterprising growth target.
Also read: Vedanta looks to Odisha government to accelerate USD 20B aluminium investment
Hand-in-hand: Community & environment
The Associate Professor of Economics at IIT Bhubaneswar, Dukhabandhu Sahoo, made a statement that the country has been importing bauxite of about INR 211,000 trillion (USD 25.4 billion) in the last five years, irrespective of the fact that Odisha has the largest bauxite reserves in the world. He further pinpointed that Odisha has an opportunity to level up its bauxite mining with the support of strategic policies at the state level. Not only this, the state can also witness a regional boost in economies, pushing it slightly closer to the goal of becoming a Viksit Odisha by 2036.
The head of the Sociology department at the Central University of Odisha, Kapila Khemundu, made a comment involving the urgent requirement for ensuring fair rehabilitation along with local communities' involvement within the up-and-running mining projects. Further, the comment highlighted that the local communities should be considered as "partners in progress, not just bystanders". Additionally, the statement addressed the state for a speedy hearing and Gram Sabha processes with the vision to have inclusive and transparent engagement.
Read our report on “A Comprehensive Analysis of Bauxite Residue - Red Mud” to get a comprehensive analysis of bauxite & red mud
Vice-President of the Society for the Study of Peace and Conflict, Odisha, Deba Mohanty, reflected upon the need to uphold sustainability in relation to how the forefront resources are utilised. He additionally addresses that the approach for significant resource management should be drafted in a way that it fosters growth for the industry as well as maintains environmental responsibilities.
Pressing issues to be addressed
Challenges include delays in getting environmental and mining clearances, lengthy Gram Sabha meetings, issues with infrastructure and logistics, unpredictable policies that shake investor confidence, and a lack of local involvement and skill development in mining areas, which are priorities to get a proper resolution.
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