94.1% of households in mineral rich Keonjhar live below poverty line, 58.4% reside in mud houses

By Bhabani Shankar Nayak* 

Keonjhar district in Odisha, rich in mineral resources, plays a significant role in the state's revenue generation. The region boasts extensive reserves of iron ore, chromite, limestone, dolomite, nickel, and granite. According to District Mineral Foundation (DMF) reports, Keonjhar contains an estimated 2,555 million tonnes of iron ore. At the current extraction rate of 55 million tonnes annually, these reserves could last 60 years. However, if the extraction increases to 140 million tonnes per year, they could be depleted within just 23 years. 

Both government-owned corporations, such as the Orissa Mining Corporation Ltd., and private enterprises like Tata Iron and Steel Corporation Ltd. and Essel Mining and Industries Ltd., are involved in exploiting these resources. As a hub of mining-driven industrialisation, Keonjhar contributes heavily to the state’s economy.

However, despite its wealth in minerals, Keonjhar is home to some of the most marginalised communities within India’s caste-based society. Even with the election of  Mohan Majhi, a tribal leader, as Odisha's Chief Minister, the district's tribal population (44.5%) and Scheduled Castes (11.62%) continue to face systemic marginalisation. Mining companies accumulate immense wealth by dispossessing these vulnerable communities. A survey conducted by the NCDS in Bhubaneswar revealed that 94.1% of households in Keonjhar live below the poverty line, and 58.4% reside in mud houses. Access to health and education is severely limited.

Although Keonjhar has ample resources and funds for social and economic development, these have not been effectively used. According to DMF, a total of ₹11,684 crore has been collected to date, with ₹1,731 crore collected in the 2023-2024 fiscal year alone. Constitutional provisions require that these funds be used for the welfare of local residents, particularly those affected by mining activities.

Proper use of these resources could eradicate hunger, poverty, and homelessness in the district. It could also help develop world-class infrastructure in health, education, transportation, and communication, transforming Keonjhar’s 2,137 villages and 297 gram panchayats. If DMF funds were distributed equitably, each village would receive over ₹5.46 crore, and each gram panchayat over ₹39.34 crore. This could significantly improve living conditions in the district.

Yet, despite the availability of such funds, women and children continue to struggle for basic health and education services. Child poverty is widespread, school dropout rates are high, and both children and women suffer from malnutrition and anaemia. It is an irony that a district paying the highest mining royalties in India is still mired in poverty, malnutrition, and deprivation.

Successive governments in Odisha—whether led by the Congress, Janata Party, Janata Dal, Biju Janata Dal (BJD), or Bharatiya Janata Party (BJP)—have maintained a rent-seeking, colonial approach to mineral resources. The focus on extracting wealth through mining-led industrialisation has overshadowed the welfare of the people. 

Governments and mining corporations collaborate to exploit both the land and the indigenous communities, displacing them from their homes and livelihoods. This perpetuates the social, economic, cultural, and environmental marginalisation of the district’s most vulnerable residents.

The current BJP-led Hindutva government under Chief Minister Mohan Majhi continues exploitative policies of previous regimes

The failure to uplift the people of Keonjhar reflects a deep crisis in the state's political leadership, which has treated governance as a tool for personal enrichment. Odisha's political elites, often from higher castes and privileged classes, have derailed the state’s progress and undermined democracy. Rather than empowering people to become stakeholders in the state’s mineral wealth, the political system has deepened inequality and exclusion, leaving Keonjhar's poor to bear the brunt of exploitation.

The current BJP-led Hindutva government, under Chief Minister Mohan Majhi, continues the exploitative policies of previous regimes. While promoting the interests of crony capitalists and mining corporations, these policies neglect the environment and the well-being of local communities. Hindutva's economic agenda mirrors the approach of the former BJD government led by Naveen Patnaik. The mere change in leadership does little to improve the lives of the district’s marginalised population.

This ongoing political and development crisis, however, presents an opportunity for change. Instead of merely participating in elections, the people of mining areas should become rightful stakeholders in the state’s resources. The government must make them shareholders in the wealth generated by their land. 

This is the only way for them to reclaim their political and economic rights, deepen democratic governance, and challenge the caste-class collaboration that has long dominated Odisha’s politics. Only through continuous struggle can Keonjhar’s residents hope to achieve true peace and prosperity.

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*Scholar based in UK