Rayagada: The Odisha government has granted final approval for construction of a 3.4-km access road to Sijimali bauxite mining block, a major step toward operationalising the Vedanta-linked project.
This followed the Stage-II (final) forest clearance issued by the Union Ministry of Environment, Forest and Climate Change (MoEFCC), allowing the diversion of 4.911 hectares of forest land for the road. The state government subsequently permitted non-forestry use of the land in favour of the Odisha Industrial Infrastructure Development Corporation (Idco), the implementing agency.
The approval has come as a big relief for the Vedanta Group, which has long tried to have a dedicated bauxite source closer to its Lanjigarh refinery.
State officials described the road, connecting the hilltop mine to State Highway-44 (SH-44) in Kashipur tehsil, as essential public infrastructure for bauxite transportation, with ownership eventually transferring to the public works department. “The Rayagada Collector and Divisional Forest Officer are authorised
to hand over the forestland coming within their jurisdiction, as has been finally diverted after necessary compliance following due procedure of law. Before handing over the diverted forestland to the user agency, it shall be ensured that Net Present Value of the forest land for this project for which approval has been obtained shall be deposited in full at applicable rates,” the state government directed in its order.
The MoEFCC has mandated compensatory afforestation over 6.07 hectares of non-forest land within two years. Earlier, it granted Stage-I approval in January 2026. However, the final clearance includes a key condition: its validity depends on the outcome of petitions pending before the Eastern Zone Bench of the National Green Tribunal (NGT) in Kolkata.
Project Scale and Economic Significance
Vedanta secured the Sijimali block through an auction in March 2023. The deposit holds an estimated 311 million tonnes of high-grade bauxite reserves across 1,549 hectares spanning Rayagada and Kalahandi districts, affecting around 18 villages in Thuamul Rampur and Kashipur tehsils. The company plans to extract nearly 9 million tonnes per annum (MTPA) primarily to supply its Lanjigarh alumina refinery, which is expanding toward 6 MTPA capacity and could require up to 18 MTPA of bauxite.
The project involves diverting 709.72 hectares of forest land overall. The Expert Appraisal Committee (EAC) on non-coal mining recommended environmental clearance on May 15 with conditions including full Stage-II forest clearance for mining areas and compliance with court orders. A separate Supreme Court case involves a dispute with Larsen & Toubro over the lease.