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

Post a Comment

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.
Post a Comment
»

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.
Post a Comment
»

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. 
Post a Comment
»

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.
59 comments
»

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.
Post a Comment
»

'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 . 
Post a Comment
»

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...
Post a Comment
»

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.
Post a Comment
»

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). 
Post a Comment
»