Displacement by Coal Mining in Odisha

Large-scale displacement in Odisha’s Angul district due to coal mining projects, with over 5,900 families displaced in the last five years, raises concerns about rehabilitation, compensation, and community disintegration.

Background: Coal and Odisha’s Energy Landscape

• India’s coal reserves: 42 billion tonnes (2024).
• Odisha: largest reserves (20 billion tonnes; 25.47% of India’s total).
• Angul district: part of Talcher coalfields (largest in India).
• Contributes 02% of Odisha’s coal output.

Human Cost of Mining: Displacement and Social Fragmentation

• Scale of displacement
  • 5,923 families displaced (2019–24).
  • 348 villages may need relocation if all 66 identified blocks become operational.
• Issues with rehabilitation
  • Disintegration of community ties; scattered settlement.
  • Lack of cremation grounds, social exclusion in new villages.
  • Promises of jobs diminishing; cash packages inadequate for urban relocation.
• Compensation Discrepancies
  • Compensation varies widely across villages.
  • Example:SCCL (Telangana) offers ?70 lakh/acre vs. ?11 lakh in Angul.
  • Land valuation not adjusted to rising urban land prices.

Governance and Policy Issues

• Coal Mines (Special Provisions) Act, 2015: reallocation through auction (post-2014 SC cancellation of 204 allocations).
• Commercial mining auction (2020): opened sector to private and FDI players; displacement risk increased.
• Implementation gaps:
  • R&R colonies often delayed or absent.
  • Lack of uniform policy; varies project to project.
  • No centralised database on displacement.
  • Social welfare schemes not transferred post-relocation.

Livelihood and Identity Crisis

• Farming and cattle rearing disrupted; no open spaces in R&R colonies.
• Erosion of community identity and cultural practices.
• Educational disruption for children.
• Women, especially pregnant and lactating, lose access to health workers.

Environmental and Energy Dilemma

• Forest cover in Angul:43% of district; threatened by expansion.
• Coal-based power still 65% of India’s installed capacity (June 2025).
• Conflict: Energy demand vs. sustainability, Paris Agreement goals, and transition to renewables.

Way Forward

• Policy Reforms
  • Creation of a centralised displacement database for monitoring.
  • Uniform valuation of land compensation linked to market rates.
  • Community-based rehabilitation to preserve village identity.
  • Ensuring time-bound establishment of R&R colonies before displacement.
• Social Security Measures
  • Automatic transfer of welfare schemes (health, PDS, pensions) to resettled populations.
  • Dedicated health and education infrastructure in R&R colonies.
• Economic Rehabilitation
  • Mandatory employment opportunities in mining companies for displaced families.
  • Skill training and support for self-employment ventures.
• Environmental Safeguards
  • Prioritisation of mine closure and ecological restoration
  • Gradual shift to renewables in line with India’s energy transition goals.