Government put Vedanta’s Odisha bauxite mine on hold, here’s what happening
The Union Environment Ministry has delayed its decision on Vedanta Limited's proposal to divert more than 700 hectares of forest land in Rayagada and Kalahandi districts in Odisha, for the Sijimali Bauxite Mines. The delay is, according to government records, related to pending issues concerning community consent, compensatory afforestation measures and biosphere concerns.
During the meeting of the Forest Advisory Committee (FAC) on August 25, 2025, the Environment Ministry noted that the reports from the Odisha government did not address the issues raised by local villagers and petitioners currently before the Orissa High Court.
As per the proposal, the mine is intended to partly meet the raw material requirements of the firm's six million tonnes per annum alumina refinery at Lanjigarh. The project also entails the displacement of around 100 families from Malipadar in Rayagada and Tijamali in Kalahandi.
The major concern
In March, the Orissa High Court pointed out claims that the Gram Sabha resolutions endorsing the project were "fraudulently" acquired and directed that affected communities must be consulted before any clearances are granted.
The proposition seeks the diversion of 708 hectares of forest in a total of 1,548 hectares to be leased. Vedanta was awarded the block in a March 2023 auction and aimed to mine 9 million tonnes of bauxite annually to partially supply its six million tonnes per annum refinery located at Lanjigarh, as detailed in the meeting minutes.
Extended environmental concern
The FAC flagged critical environmental issues, pointing out that the proposed mine would be in an elephant habitat and it is highly susceptible to soil erosion. The committee asked the state government to submit a complete erosion management plan and to seek input from Project Elephant.
With respect to compensatory afforestation, the panel found that some of the land identified overlaps with land planned for another mining project and directed the state of Odisha to provide its site-specific reports to establish if the site is suitable and if any encroachment exists.
The FAC noted that 8.08 hectares of the identified area had an already assigned area for the Dubna-Sakradihi mining project and they sought clarification. They also identified indicators of shifting cultivation and village pathways across numerous proposed sites and asked Odisha to submit site-specific reports stating that the sites were free of any encroachment.
The company stated that mining operations will focus on unvegetated hilltops, while valleys will be retained for development as green belts. The company also committed to funding a site-specific wildlife conservation plan for the 10-km impact zone estimated to cost INR 34.44 crores (USD 3.91 million), in addition to more than INR 107 crores (USD 12.14 million) in compensatory afforestation programs.
The decision, at present, indicates the company's first bauxite mine in Odisha, which roughly holds around 311 million tonnes of reserves, will be on hold till the present concerns and gaps are identified and resolved by the committee.
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