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Displacement by Coal Mining in Odisha
Context:
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.
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PYQ: Examine the role of ‘environmental movements’ in India in strengthening democratic processes. Do you think displaced communities due to development projects have received adequate justice? Discuss. (2021) |
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