Skip to main content

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.
---
*Scholar based in UK

Comments

TRENDING

Plastic burning in homes threatens food, water and air across Global South: Study

By Jag Jivan  In a groundbreaking  study  spanning 26 countries across the Global South , researchers have uncovered the widespread and concerning practice of households burning plastic waste as a fuel for cooking, heating, and other domestic needs. The research, published in Nature Communications , reveals that this hazardous method of managing both waste and energy poverty is driven by systemic failures in municipal services and the unaffordability of clean alternatives, posing severe risks to human health and the environment.

Economic superpower’s social failure? Inequality, malnutrition and crisis of India's democracy

By Vikas Meshram  India may be celebrated as one of the world’s fastest-growing economies, but a closer look at who benefits from that growth tells a starkly different story. The recently released World Inequality Report 2026 lays bare a country sharply divided by wealth, privilege and power. According to the report, nearly 65 percent of India’s total wealth is owned by the richest 10 percent of its population, while the bottom half of the country controls barely 6.4 percent. The top one percent—around 14 million people—holds more than 40 percent, the highest concentration since 1961. Meanwhile, the female labour force participation rate is a dismal 15.7 percent.

The greatest threat to our food system: The aggressive push for GM crops

By Bharat Dogra  Thanks to the courageous resistance of several leading scientists who continue to speak the truth despite increasing pressures from the powerful GM crop and GM food lobby , the many-sided and in some contexts irreversible environmental and health impacts of GM foods and crops, as well as the highly disruptive effects of this technology on farmers, are widely known today. 

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Stands 'exposed': Cavalier attitude towards rushed construction of Char Dham project

By Bharat Dogra*  The nation heaved a big sigh of relief when the 41 workers trapped in the under-construction Silkyara-Barkot tunnel (Uttarkashi district of Uttarakhand) were finally rescued on November 28 after a 17-day rescue effort. All those involved in the rescue effort deserve a big thanks of the entire country. The government deserves appreciation for providing all-round support.

'Restructuring' Sahitya Akademi: Is the ‘Gujarat model’ reaching Delhi?

By Prakash N. Shah*  ​A fortnight and a few days have slipped past that grim event. It was as if the wedding preparations were complete and the groom’s face was about to be unveiled behind the ceremonial tinsel. At 3 PM on December 18, a press conference was poised to announce the Sahitya Akademi Awards . 

Epic war against caste system is constitutional responsibility of elected government

Edited by well-known Gujarat Dalit rights leader Martin Macwan, the book, “Bhed-Bharat: An Account of Injustice and Atrocities on Dalits and Adivasis (2014-18)” (available in English and Gujarati*) is a selection of news articles on Dalits and Adivasis (2014-2018) published by Dalit Shakti Prakashan, Ahmedabad. Preface to the book, in which Macwan seeks to answer key questions on why the book is needed today: *** The thought of compiling a book on atrocities on Dalits and thus present an overall Indian picture had occurred to me a long time ago. Absence of such a comprehensive picture is a major reason for a weak social and political consciousness among Dalits as well as non-Dalits. But gradually the idea took a different form. I found that lay readers don’t understand numbers and don’t like to read well-researched articles. The best way to reach out to them was storytelling. As I started writing in Gujarati and sharing the idea of the book with my friends, it occurred to me that while...

The illusion of nuclear abundance: Why NTPC’s expansion demands public scrutiny

By Shankar Sharma*  The recent news that NTPC is scouting 30 potential sites across India for a massive nuclear power expansion should be a wake-up call for every citizen. While the state-owned utility frames this as a bold stride toward a 100,000 MW nuclear capacity by 2047, a cold look at India’s nuclear saga over the last few decades suggests this ambition may be more illusory than achievable. More importantly, it carries implications that could fundamentally alter the safety, environment, and economic health of our communities.

The war on junk food: Why India must adopt global warning labels

By Jag Jivan    The global health landscape is witnessing a decisive shift toward aggressive regulation of the food industry, a movement highlighted by two significant policy developments shared by Dr. Arun Gupta of the Nutrition Advocacy for Public Interest (NAPi).