Centre Defers Decision on Vedanta's Proposal to Divert 708 ha Forest Land for Sijimali Bauxite Mines

The Union Environment Ministry has deferred a decision on Vedanta Limited's proposal to divert over 700 hectares of forest land in Odisha's Rayagada and Kalahandi districts for the Sijimali Bauxite Mines, citing unresolved issues over community consent, compensatory afforestation and ecological risks, government records show.

The ministry's Forest Advisory Committee (FAC), which met on August 25, said reports submitted by Odisha were silent on concerns raised by villagers and petitioners before the Orissa High Court.

In March, the court recorded allegations that Gram Sabha resolutions supporting the project were "fraudulently" obtained and directed that affected communities must be taken into confidence before clearance.

The proposal involves the diversion of 708 hectares of forest from a total leasehold area of 1,548 hectares. Vedanta, which won the block in a March 2023 auction, plans to mine nine million tonnes of bauxite annually to partly feed its six million tonnes per annum refinery at Lanjigarh, according to the minutes of the meeting.

The FAC also flagged ecological concerns, saying the project area falls within elephant habitat and is vulnerable to severe soil erosion. It asked the state to submit a detailed erosion control plan and sought inputs from Project Elephant.

On compensatory afforestation, the panel pointed out that part of the land offered overlaps with a site already allocated for another mining project and said Odisha must provide site-wise reports proving suitability and freedom from encroachment.

The decision means Vedanta's first bauxite mine in Odisha, estimated to hold 311 million tonnes of reserves, remains on hold until the state addresses gaps identified by the committee