The Odisha government has granted permission for the construction of a road connecting State Highway 44 and Sijimali hilltop to facilitate the transportation of bauxite in Kashipur block of Rayagada district.

Sijimali, with an estimated 311 million tonnes of bauxite, was allocated to Vedanta in March 2023. The mineral is crucial for the Vedanta Group to keep its alumina refinery at Lanjigarh running. However, the project has since been facing resistance from local people, who fear that mining activity could dry up streams and adversely impact their livelihood.

For several months, villagers have been living in makeshift shelters atop the hill, keeping a round-the-clock watch to prevent the construction of the road from Bichhapinda along SH-44 to Sijimali hilltop.

The State-run Odisha Industrial Infrastructure Development Corporation (IDCO) had applied for the diversion of 4.911 hectares of forest land for the construction of an access road from Sijimali bauxite mines (Hill Top) to SH-44 to facilitate bauxite transportation.

The Union Ministry of Environment, Forest and Climate Change granted Stage-I (in-principle) approval for diversion of the forest land in January 2026. 

Subsequently, considering the compliance with the conditions laid down under the Stage-l in-principle approval, the Ministry granted Stage-ll approval (final) under Section-2 (1) (ii) of the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 for non-forestry use of 4.911 hectares of forest land in favour of IDCO on May 6, 2026.

Following the final approval, the Odisha government has now allowed non-forestry use of 4.911 hectares of forest land for road construction.

“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.

The approval comes as a big relief for the Vedanta Group, which has long tried to have a dedicated bauxite source closer to the Lanjigarh refinery. For more than two decades, the company has been running the refinery by sourcing bauxite from within the country and outside.

Sijimali is expected to help bridge the raw material gap, especially as the company eyes an expansion of its refinery capacity from 2 million tonnes per annum (MTPA) to 6 MTPA at Lanjigarh, a move that would require up to 18 million tonnes of bauxite annually.