Skip to main content

Influence of mining corporations on policy makers 'leading to' erosion of democracy in Odisha

By Bhabani Shankar Nayak*
 Odisha is rich in high-quality natural resources, including iron, bauxite, chromite, and manganese ore, as well as a variety of other valuable minerals like coal, limestone, dolomite, tin, nickel, vanadium, lead, graphite, gold, and gemstones. This resource-laden state is responsible for 57% of India’s iron ore production, hosting over 60 operational mines and more than 150 square kilometers under exploration for further mineral deposits. 
Unfortunately, the local population does not share in the benefits of these vast natural resources; instead, many of the poorest communities reside in the very regions that are rich in minerals. This situation underscores the severe disparity in wealth distribution stemming from these natural assets, creating a "paradox of plenty" that perpetuates poverty and hunger, both of which are frequently reported at national and international levels. 
Since gaining independence, Odisha has favored a pro-business approach alongside mining-led industrialization. Various political parties, including the Congress, Swatantra Party, Janata Dal, Janata Party, Biju Janata Dal (BJD), and Bharatiya Janata Party (BJP), have consistently supported mining corporations under the guise of promoting economic growth. Sadly, rather than foster equitable economic development, this has resulted in mining corporations undermining democratic processes and transforming the resource-rich state into one suffering from a resource curse. 
The rent-seeking behavior of the Odisha government has not only stalled economic or human development but has also fortified the influence of caste, class, and elite groups, allowing them to maintain control over resources and governance. This has fostered a neopatrimonial relationship characterized by the collusion of the state, government, and mining entities, thereby cementing the power of these corporations at the expense of fair development. 
Consequently, mining corporations exert significant control over democracy in Odisha, contributing to ongoing political and economic crises for the state's residents. The "Performance Audit of Systems and Controls in Assessment and Collection of Revenue from Major Minerals for the Year Ended March 2022 (Report No. 6 of 2024)" by the Comptroller and Auditor General of India (CAG) reveals that the state has facilitated mining corporations' interests, leading to severe losses in mining revenue. 
The state treasury has suffered tremendously due to the undervaluation of mineral ores by the Odisha government. This excessive support for private mining enterprises has been accompanied by significant political contributions, with mining corporations in Odisha donating ₹601 crore in electoral bonds to various political parties. Major political players, including the BJD, BJP, and Congress, have all benefited from these contributions, with the BJD receiving ₹453 crore and the BJP receiving ₹145 crore from just six active mining companies. 
Who is concerned about the ₹22,392 crore loss in mining revenue to the Odisha treasury? Who is addressing the ₹10,294 crore lost due to ore undervaluation? Who prioritizes the welfare of the people and environment in Odisha's mining regions? Mainstream political parties, mining companies, and ruling and opposition elites collaborate to safeguard their mutual interests, while ordinary citizens in Odisha endure ongoing unemployment, poverty, hunger, underdevelopment, and health issues. 
Successive governments have provided uninterrupted support to mining firms and extractive industries, operating under the assumption that governance is intended to serve these corporations rather than the people of Odisha. This collusion not only erodes democracy but also undermines the essential conditions for genuine democratic governance within the state. 
Both the ruling and opposition parties benefit from political donations which bolster mining interests
The intertwining of mining corporations with politics is eroding democratic institutions in Odisha. Both the ruling and opposition parties benefit from political donations which bolster mining interests. This crony capitalism, driven by mining companies, has detrimental impacts on the state’s economy, environment, and democratic integrity. While the BJP recently unseated the BJD after more than two decades in power, their policies regarding mining are strikingly similar. 
Both parties demonstrate an unwavering commitment to the interests of mining corporations. Newly appointed Chief Minister Mr. Mohan Charan Majhi, despite hailing from a tribal background, appears unfazed by the displacement of tribal communities due to mining, actively facilitating the transfer of forest land and tribal territories to mining operations without hesitation. 
Political leaders across the spectrum are influenced by mining corporations, which establish a foundation for pro-mining stances through regular financial incentives, regardless of party affiliation. In Odisha, mining has become a risk-free endeavor, undeterred by regulation. Protecting land and natural resources, as well as the livelihoods that depend on them, is vital for peace and prosperity in the state. 
History demonstrates that mining-led industrial growth does not eradicate poverty or hunger. Instead, fostering cooperative and equitable management of natural resources can significantly alleviate these issues in Odisha. In light of this, the people of Odisha must advocate for a new political paradigm that positions them as stakeholders and custodians of the state's mineral wealth. 
The initial step involves mobilizing the workforce to challenge mining corporations and dismantle their political influence. Advocating for radical alternative politics in Odisha necessitates policies that promote equitable resource distribution while emphasizing principles of equality, justice, and liberty as enshrined in the Indian Constitution.
---
*Scholar based in UK 

Comments

TRENDING

Mergers and privatisation: The Finance Minister’s misguided banking agenda

By Thomas Franco   The Finance Minister has once again revived talk of merging two or three large public sector banks to make them globally competitive. Reports also suggest that the government is considering appointing Managing Directors in public sector banks from the private sector. Both moves would strike at the heart of India’s public banking system . Privatisation undermines the constitutional vision of social and economic justice, and such steps could lead to irreversible damage.

Political misfires in Bihar: Reasons behind the Opposition's self-inflicted defeat

By Vidya Bhushan Rawat*  The Bihar Vidhansabha Election 2025 verdict is out. I maintained deliberate silence about the growing tribe of “social media” experts and their opinions. Lately, these do not fascinate me. Anyone forming an opinion solely on the basis of these “experts” lives in a fool’s paradise. I do not watch them, nor do I follow them on Twitter. I stayed away partly because I was not certain of a MahaGathbandhan victory, even though I wanted it. But my personal preference is not the issue here. The parties disappointed.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah  Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

Whither GIFT City push? Housing supply soars in Mumbai, Hyderabad, Pune, not Ahmedabad

By Rajiv Shah    A new report by a firm describing itself as a "digital real estate transaction and advisory platform," Proptiger , states that the Mumbai Metropolitan Region (MMR) has been the largest contributor to housing units among India's top eight cities currently experiencing a real estate boom. Accounting for 26.9% of all new launches, it is followed by Pune with 18.7% and Hyderabad with 13.6%. These three cities collectively represented 59.2% of the new inventory introduced during the third quarter (July to September 2025), which is the focus of the report’s analysis. 

Only one Indian national park rated ‘good’ by IUCN: Concerns over ecological governance

By A Representative   Environmental policy expert Shankar Sharma has written to the Ministry of Environment, Forest and Climate Change (MoEF&CC) and its affiliated institutions, expressing grave concern over India’s deteriorating ecological health. Citing the International Union for Conservation of Nature (IUCN)’s latest global review, which found that only Khangchendzonga National Park received a “Good” rating among 107 national parks, Sharma warned that the findings reveal a “serious concern for the overall health of the country’s flora, fauna, and environment.”

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.