Odisha: The mining curse and apathy of ‘Maharatnas’

Odisha has sadly become an object of ridicule or, even worse, pity, in most parts of India, especially the racist metros where all good jobs are concentrated. This is mainly due to British legacy and lack of planning by successive governments at both state (barring Karnataka and AP) and centre.

This despite the respect Odias command in both private and government organisations. It is not a coincidence that Odisha, despite its small population (about 4.7 crore per latest census; similar to the population of some metros), has representatives in the highest offices of India – Rashtrapati Bhawan, the RBI, Ministry of Education, Railways, etc, and in private companies in India and other countries.

Odisha was a major global empire during the rule of Kharabela, when Kalinga (from which Odisha was carved) spread from Mathura and Magadha in North to Maharashtra in West, and Kanchi and Rameswaram in South. Indians are still called “Klings” in Malaysia, and the island of Bali, the only Hindu region in Southeast Asia, still follows Kalingan rituals and festivals. All this much before the maritime rise of other Indian empires like the Pandyas and Cholas.  

While Odisha has far lagged its potential for decades, if not centuries, it is still one of the richest states of India, owing to its mineral resources and hardworking humble people.

Odisha’s mineral reserves account for 28% iron ore, 24% coal, 59% bauxite and 98% chromite of India’s total deposits. Major industries in Odisha include integrated steel plants at Rourkela, Kalinga Nagar, Jharsuguda and Angul; NALCO (National Aluminium Company Ltd.) in Damanjodi and aluminium smelting complex at Angul; thermal power plants in Talcher and Ib valley area, in addition to fertilizer plants, pulp and paper industries, ferro alloys plants, and cement plants, according to the state government.

Iron ore is abundantly available in the districts of Mayurbhanj, Sundargarh, Keonjhar and Jajpur. While chromite is present in Jajpur, Dhenkanal and Keonjhar districts, manganese deposits are found in Sundargarh, Keonjhar, Rayagada and Bolangir districts; dolomite is available plentily only in Sundargarh. There are two major coal bearing areas — Talcher and the Ib valley.

Other minerals like China clay, fire clay, limestone, quartz, precious and semi-precious stones, copper, manganese, graphite, vanadium, etc, are also available in the state.

One would expect great development – highways, rail and air connectivity, swanky hospitals and schools. Also, a lot of downstream companies like rail factories, auto hubs, wiring and tubular companies, and several metal SMEs. Especially during Covid-19, when metal prices rose sharply, and by looking at the rise of states like Maharashtra, Gujarat and Tamil Nadu, where mineral-based downstream companies are present.

But the state of Odisha remains as pathetic as ever. Children have been conditioned from decades to study hard and move to metros or abroad for further studies and jobs. Migrating labour from Odisha in terms of percentage is perhaps one of the highest in India – 1.33 crore registered in GoI’s State Sewa Kendras (SSKs) as of 27 January 2023 of a total population of around 4.7 crore – nearly 30%; unregistered should be much higher.

Odisha could easily have been a developed self-sufficient state, considering its rich mineral reserves and huge number of mining companies – ask any illegal miner and transport companies in Keonjhar about the opportunities to become rich. Given its small population, even forest produce-based industries could have provided significant number of jobs, let alone metal companies. Why does GST not account for mineral mining?

However, in this report, we focus on a basic need – hospitals. Isn’t it surprising that being home to some Navratna and Miniratna PSUs, there is not a single multi-specialty hospital in the mining areas of Odisha in over 40-50 years of mining. Such PSUs spend crores of rupees every year under CSR (Corporate Social Responsibility) and handover cheques to the central government in annual dividends amid much fanfare, while people in these most undeveloped areas have to travel hundreds of kilometres (often to neighbouring states) just to get a CT scan or an MRI – many succumb due to delay in diagnosis and treatment.

In FY 2021-22, the CSR budget of Nalco was Rs.28.6 crore, while Rs.36.9 crore was spent. They spend a significant amount in lake beautification like HAL (also present in Koraput) does. Mining companies like Nalco (which shockingly prides on being the world’s “lowest-cost” alumina producer) can surely build and operate a multi-speciality hospital in far-flung and deserving areas like Jeypore in Koraput district (undivided Koraput district is larger than Kerala in area), at a fraction of the spending in CSR.

Instead, people in mining areas live a wretched life, fraught with dangers, just to eke out a living. A case in point is about the Nalco town Damanjodi in Koraput. It existed as a village much before Nalco, and people here had (still have) high hopes of a better life once Nalco started mining. Hope of a job in Nalco, service-oriented business, some trickle-down benefits…schools and hospitals.

But no. There was and is only elitism – a school only for Nalco employees, rail line to transport bauxite, a PHC only for Nalco, and fenced housing for employees – who by no coincidence are mostly not from the district, forget local town. The loot reminds one of British rule.

Meanwhile, housing remains a challenge for the locals who fear eviction every day from “Nalco land”. About 25 years ago, a senior electrical engineer was shocked to see live 11kV line passing through the homes of the locals there. He even tried to build a parallel safe line, installing several transformers on the other side of the road which had no houses then.

But Nalco and the district administration (Arbinda K Padhee, currently Principal Secretary, Krushibibhag, Government of Odisha, was the Collector of Koraput in the late ’90s) objected saying it was “Nalco’s land” – the danger to life of the poor locals notwithstanding. Reportedly, around five people had died then due to contact with live wires. Many deaths were not recorded, and no FIR or postmortem was done largely due to fear of eviction and counter-cases by Nalco and the government.

Orissa State Electricity Board or OSEB was privatised in 1995, and a state PSU, GRIDCO Ltd, took over. Southern parts of Odisha came under SOUTHCO. Currently, power distribution in Odisha is managed by Tata Power.

MDDTimes spoke with the then SDO Electrical, SOUTHCO, in Sunabeda region, who had Damanjodi under jurisdiction. Excerpts:

MDDTimes: Reportedly, dangerous live 11kV and 33kV electric lines run inside and close to homes in Matalput and other places near Nalco town in Damanjodi. Is it true? How dangerous is it?

Former SDO: It is true. 11kV and 33kV lines can be seen inside and over some houses in Matalput and Bhejaput villages near Nalco, Damanjodi. It is very dangerous and life-threatening.

MDDTimes: Since when are people living in such a dangerous environment? What action did you under SOUTHCO take when you noticed it?

Former SDO: At least from 1999, when we first noticed it. Immediate action was taken by SOUTHCO and notices were sent to the people concerned. We had constructed the required substations with transformers and laid down few kilometers of 11kV line on the other side of the road, which was vacant land then. We were also considering shifting the 33kV line, which required more space.

MDDTimes: Why were these not completed?

Former SDO: The newly constructed 11kV line could not be charged because Nalco objected citing the need to widen the road. The government administration did not cooperate with SOUTHCO as well. Finally, the new line and the substations were dismantled by Nalco, leaving the people in the precarious condition they are in till date.

MDDTimes: Can’t the same be done now?

Former SDO: It isn’t possible now, given there is no land available for a new line. Underground cabling is an option, but Tata Power will have to spend a significant amount to do so, without much returns.

This is corroborated by the then JE (Junior Engineer, SOUTHCO). He told MDDTimes, in 1999, at least 5-6 people had died due to contact with live wire, but real and cumulative numbers should be much higher. Some people had to go to Visakhapatnam in Andhra Pradesh (about 160km from Damanjodi) for treatment, while many more were treated in local hospitals.

Such cases of apathy are plenty across Odisha and other mining areas in India. It is not just about Nalco, PSUs in Odisha have done little to improve the lives of locals so far, despite their huge CSR budgets.

Fortunately, the solution is not very difficult as PSUs and state government companies are involved. A single government order could change all this quickly. Safety, healthcare and education could be improved in a matter of months, and the model could be replicated in other states. Will the state government do it? Or the centre?

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PS: We intend to update this article once we receive inputs. Meanwhile, take a look at what Nalco says about itself on its website:

National Aluminium Company Limited (NALCO) is a Schedule ‘A’ Navratna CPSE established on 7th January, 1981 having its registered office at Bhubaneswar. It is one of the largest integrated Bauxite-Alumina-Aluminium- Power Complex in the Country. At present, Government of India holds 51.28% of paid-up equity capital. The Company has been operating its captive Panchpatmali Bauxite Mines for the pit head Alumina refinery at Damanjodi, in the District of Koraput in Odisha and Aluminium Smelter & Captive Power Plant at Angul.  As a part of green initiative, NALCO has installed 198 MW Wind Power Plants at various locations in India and 800 kWp roof top Solar Power Plants at its premises to join hands for carbon neutrality. From the days of first commercial operation since 1987 the Company has continuously earned profits for last 35 years. Despite the Global COVID-19 pandemic, NALCO has posted Highest ever sales revenue of Rs.14,181 Crore and Highest ever PAT of Rs. 2,952 Crore in FY 2021-22. The Company achieved full capacity production of 4.6 lakh tonne, with all 960 POTs in operation in its Aluminium Smelter for the first time since inception in FY 2021-22. The Company has also achieved highest ever Bauxite production of 75.11 lakh tonne in FY 2021-22.

The Company has regional sales offices in Delhi, Kolkata, Mumbai, Chennai and 8 operating stockyards at various locations in the Country to facilitate domestic consumers. In addition, NALCO has its own bulk shipment facility for export of products.

NALCO is the first Public Sector Company in the country to venture into international market in a big way with London Metal Exchange (LME) registration since May, 1989. The Company is listed at Bombay Stock Exchange (BSE) since 1992 and National Stock Exchange (NSE) since 1999.

To face the challenges of ever-evolving market and position the Company in a sustainable growth path, a new corporate plan has been developed with well-defined 3-year action plan, 7-year strategy & 15 years vision of being a Premier and Integrated Company in the Aluminium value-chain with strategic presence in Mining both domestic & global, Metals and Energy sectors. The Corporate Plan has chalked out a roadmap for multifold growth in revenue and Profit by 2032.

As a responsive Corporate, the Company is harnessing renewable energy aligning to the ambitious programmes of Govt. of India. The Company has already commissioned 198 MW wind power plants and further 25 MW wind power plants are in pipeline.

To be more resilient to the vagaries of market, the Company is moving ahead with its extensive plans for brownfield and greenfield expansion projects, which include the ongoing 5th Stream Refinery project of 1 MTPA capacity in existing Alumina Refinery at Damanjodi (Brownfield), development of Pottangi bauxite mines, Utkal D&E coal mines in Odisha, establishment 5 lakh TPA brownfield Smelters along with 1400 MW Captive Power Plant in Odisha.

As part of backward integration, the Company is establishing a caustic soda plant in JV with Gujarat Alkalies & Chemicals Limited (GACL) in Gujarat.

NALCO is a leading name in the industrial map of Eastern India. True to the spirit, the Company is taking the lead to bring in a significant change in the Industrial map of Odisha. The Company has formed JV Company named ‘Angul Aluminium Park Private Ltd’ (AAPPL) with Odisha Industrial Infrastructure Development Corporation (IDCO) to give a boost to ancillary, upstream & downstream products related to aluminium industry.

Besides, the Company has formed a JV Company with MIDHANI named Utkarsha Aluminium Dhatu Nigam Limited (UADNL) to make high end aluminium alloy to meet the requirement of defence and aerospace sector. To acquire strategic mineral assets in overseas location and making supply in India, NALCO has formed a JV Company named Khanij Bidesh India Limited (KABIL) with HCL and MECL.

As a part of its effort to convert waste to wealth, the Company is endeavouring to salvage iron concentrate from red mud, Gallium from spent liquor. The Company has also successfully commissioned a first of its kind de-fluoridation process based on nano-technology to de- contaminate the effluent water of Smelter solving a long standing fluoride contamination problem of the area.

The Company, while climbing the ladder of success has strived hard to play a significant role in the socio-economic development in its operational areas through empathetic CSR activities. Rehabilitation of displaced families, employment, income generation, health care and sanitation of local people, education & skill development, providing safe drinking water, development of infrastructure, pollution control, environmental measures, rural development, promotion of arts, crafts & culture and various humanitarian good will missions have earned NALCO a place of pride in the corporate world.

The Company is one of the 1st CPSEs to have a CSR Policy since inception and is compliant to the norms of Companies Act. For effective implementation of CSR activities, NALCO has set up a standalone Foundation in 2010.

With encompassing initiatives to provide a better living to the periphery areas and contribute to nation building the Company has taken many ambitious projects. Its notable efforts include Indradhanush scheme, where the Company has already sponsored more than one thousand tribal children of Maoist infested Damanjodi sector and provided education to them in 3 reputed residential schools. 816 meritorious girl students of BPL families at Angul and Damanjodi sector have been adopted with financial support by the Company under ‘Nalco ki Ladli’ scheme in line with Govt’s ‘Beti Bachao, Beti Padhao’ Mission. Recognizing the healthcare needs as one of the critical need, NALCO is operating 8 MHUs (Mobile Health Units) and one OPD in peripheral villages of its plants by which more than lakh patients treated every year.

Responding to the call of Govt of India, NALCO actively participated in Swachh Bharat Abhiyan by constructing 479 toilets in various districts of its operating areas and has also completed 11 periphery villages Open Defecation Free (ODF) in Damanjodi and Angul sector.

NALCO has taken the responsibility of Shri Jagannath Temple, Puri & its surrounding under PM’s Iconic Shrine Development Programme to upgrade the infrastructure & maintain cleanliness.

The Company has given special emphasis on Renovation and beautification of Gandhi Park as a tourist spot, temple illumination, beautification of Puri town with thematic painting based on Jagannatha culture, operation of Battery-Operated Vehicle from Jagannath Ballav Math to Shree Jagannath Temple and Railway Station for differently-abled passengers, senior citizens and sick people, RO based water posts at different locations in side Puri Town.

The Company’s penchant to prop up the renowned heritage, art and culture of the State has drawn wide acclamation specifically with patronization of living cultural and sports legends by the Company.

Major Activities taken up to help in fighting the Covid-19 Pandemic:

Contributed Rs.7.6 crore to PM CARES

Contributed Rs.2.6 crore to CM’s Relief Fund, Odisha.

Funded 200 bedded exclusive COVID-19 hospital at Nabarangpur.

NALCO in convergence with Govt of Odisha, funded 150 Bedded District Covid Hospital at ESI Hospital, Banarpal in Angul District.

Financial support for 70 bedded SLNM College & Hospital at Aspirational district of Koraput, Odisha.

Set up two exclusive COVID Care Centres (50 bed each), one each at Damanjodi and Angul and one COVID Care Centre at Bhubaneswar (20 bed).

Dedicated Corona Corners and isolation wards created at Company owned hospital.

25,70,000 capacity Covid vaccine Refrigerated Truck to Odisha State Immunization cell.

Two Ventilator Ambulance to State Health Department, Odisha.

Digital x-ray machine to Bhubaneswar Municipality Corporation (BMC) Hospital.

The company since inception has marched ahead with sustainable growth, perpetual profits while exhibiting deep empathetic concern for the society. Etched in the hearts of millions of people of Odisha as modern industrial “Konark”, the company has been able to create a special place for itself for the people it works with. Enhancing the stakeholders’ wealth has remained the prime mover to steam Company’s growth but nonetheless the driving spirit remains to bring smiles in the face of multitude of its stakeholders.

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