Unabated Stirs & Economic Blockades Mar Mineral Rich Tribal-Dominated Sundargarh, Catapult Economic Crisis
Sundargarh/Bhubaneswar, July 12, 2024: The mining-rich Hemgir area of tribal-dominated Sundargarh district in Odisha is encountering a critical economic crisis due to ongoing blockades and agitations.
Since these uncalled-for disruptions are threatening the local economy, scores of experts predict further stagnation if such unwarranted resistance to coal transportation from mines continues.
The impact is far-reaching as it is adversely affecting not only the heavy-duty vehicle owners employed in the booming coal transportation business, but also the labourers and their families indirectly dependent on the mining industry are bearing the brunt.
Moreover, the growing aversion of investors towards the mining and coal industries in the region is creating an unusual and precarious economic situation.
The current unrest can be traced back to June 14th of the previous year when displaced families from Jamkani, Girisima, Menda, and Jharpalan revenue villages under Hemgir block in Sundargarh district initiated a movement against mining operations.
The Jamkani coal mine, which had been closed since 2011, was initially operated by the Bhushan Company. During this period, displaced families received compensation for the land acquisition and resettlement. Subsequently, Vedanta acquired ownership through an auction and paid additional ex-gratia to the mining and displaced families.
When Vedanta reopened the mine, it initially sparked off economic momentum in the region. However, the situation has deteriorated with the mining operations hampered by political pressures and resistance to coal transport. Agitators, taking the law into their own hands, have escalated their protests beyond acceptable limits.
Critics argue that the movement is undemocratic as well as accuse some protesters of seeking additional economic benefits from the land that has already been acquired. The economic blockade imposed by the displaced families has effectively halted coal transportation from the mine, exacerbating the region’s economic instability.
Despite discussions with the district administration, the impasse continues, severely affecting the region’s economic dynamics.
The recent change of guard in the state’s politics brought in a glimmer of hope with the agitators meeting the new Chief Minister of Odisha to address the issue. However, the violent and undemocratic nature of the protests at ground zero persists, resulting in significant revenue losses for the state exchequer.
If this resistance continues, the state government stands to face substantial financial losses due to the cessation of coal transportation.
The refusal to engage in constructive dialogue with the administration and displaced people is viewed as detrimental to both regional interests and government finances.
Furthermore, the resulting loss of corporate profits is hampering the overall economic prosperity of the region.