How Bauxite Mining Affects Livelihoods in Odisha's Koraput Region

Bauxite Mining in Koraput Region
of Odisha: A Socio-Economic and
Livelihood Analysis
Prof. M. Gopinath Reddy
Dr. Prajna Mishra
Ch. Nagaraju
(RULNR-CESS, Hyderabad)
&
S.V. Ramana
Programme Coordinator
MSSRF, Koraput, Odisha

1

INTRODUCTION
 The state of Odisha and Andhra Pradesh has the largest amount of bauxite reserves in the country.
 The bauxite deposits of Odisha are broadly described under the Southern, Central and Northern
groups.
Bauxite Deposits of Odisha

Group Estimated Reserves Mine Area
(Million Tonnes) (Hectares)

Southern Group
Ballada 12.41 86
Maliparbat 9.80 109
Pottangi 69.03 265
Total Southern 91.24 460
Central Group
Panchpatmali 316.98 1445
Kodingamali 91.4 533
Karnapadikonda 17.2 193
Total Central 425.58 2171
Northern Group
Baphlimali 195.73 960
Sijimali 86 1300
Karlapat 59 973
Lanjigarh 53 564
Total Northern 393.73 3797
Total Odisha 910.55 6428
Source: Geological Survey of India (1979)

2

Research Gap
 There is little analytical research that focuses on the microeconomic or
regional effects of mining.

 This study is primarily concerned with whether or not bauxite mining
operations can produce net sustainable benefits to local communities, and,
if so, whether there are policies or processes that can increase positive and
reduce negative impact.

 In order to determine the net benefits, it is necessary to analyse all
relevant impacts – economic, social, cultural, health and environmental.

 The project has evaluated to see whether livelihood status has
deteriorated, improved or remain same with the project.

3

Research Questions and Objectives
The main research questions addressed in this study are:

•How does mining influence the livelihoods of the local people? What
exactly are the benefits/costs of the mining projects?
•How can benefit and indeed potential negative outcomes be assessed?

The objectives of the study are:
i)To assess the socio-economic and environmental impacts and challenges
of bauxite mining. i.e. Its possible impact on financial capital (household
income), physical capital (land, house, livestock and other physical assets),
human capital (health, literacy), social capital (displacement, social
network) and natural capital (water, air, noise).
k)To specially look at the role of NALCO in restoring livelihood status of
the project affected population by providing various facilities. 4

Methodology, Study Area and Sample Selection

 There are 12 villages from three blocks surrounded by the refinery and
nearly 40 villages from four Gram Panchayat surrounded by the mines.
 The criteria for selection of villages are: a) larger tribal population, b)
affected by pollution, c) crop loss, and d) health hazards etc.
 There are five-six villages under each area and views of the people
representatives were also considered for village selection.
 The Village Analabadi is selected purposively as people of 13 displaced
villages are resettled here.

5

Sample Villages
Area Zone Villages Total Sample
Households Households

Mining Area Core Zone Kapsiput 142 38
Buffer Zone Kardiguda 79 21
Control Villages Putraghati 201 53
Refinery Area Core Zone Analabadi 607 175
Ambogam 133 36

Buffer Zone Mujanga 259 67
Control Villages Marichamal 77 21
Ash and Red Core Zone Goudaguda 73 24
Mud ponds Khoraguda 34 8
Champapodar 84 10

Buffer Zone Charangaguda 72 23
Control Villages Kadamguda 34 15
Total 1795 491
Source: Field Survey (2011) 6

Project Affected People: Basic Features
Displacement Scenario of NALCO
Affected Villages 26
Affected Families Tribal 254 (42.55)
Dalit 56 (9.38)
Others 287 (48.07)
Total 597 (100)
Land acquired Mines 427.30 (4.25)
(acres) Township 2,638.96 (26.24)
Plant 6,992.50 (69.52)
Total 10,058.76 (100)
Govt. Land 2,805.49
Agri. Land 2,834.56 7
Source: Field Survey (2011)

Compensation Scenario of NALCO
Families Displaced 597
Families Rehabilitated 441
Job Received 352
Compensation per one 2000
acre of land (Rs)
Compensation for Tree 100
Compensation for CPR No

We covered 10 displaced hamlets, 12 revenue villages in seven panchayats of
Koraput district.
Initially we interviewed all household heads (1483) of these hamlets of the selected
villages. the socio-economic details are given below:
In the mining core zone, Kapsiput is our sample village. It has 142 households out of
which 141 households belong to the scheduled tribe category.
In the mining buffer zone Khardiguda and Putraghati are two sample villages.
Khardiguda has 79 households and all belong to the scheduled tribe. Putraghati has 201
8
households with mixed population.

Demographic Features of Affected Villages
Households Category
Study Zone Village Panchayat Block
SC ST OBC OC Total

Mining Core Kapsiput Bhifaarguda Lakhimpur 1 141 0 0 142
Mining Khardiguda Littiguda Koraput 0 79 0 0 79
Buffer
Putraghati 26 95 79 1 201
Refinery Analabadi Matalput Koraput 68 267 144 128 607
Core
Ambogam Littiguda 2 131 0 0 133

Refinery Mujanga Mujanga Dasamanthapur 143 93 0 23 259
Buffer
Marchimal Matalput Koraput 21 0 15 41 77
ARMP Core Goudaguda Charangul Semiliguda 0 0 0 73 73
Zone
Kharaguda Podampur Koraput 4 2 14 13 33
Champapod Mujanga Dasamanthapur 11 1 9 64 85
ar
ARMP Charangagud Podampur Koraput 30 42 0 0 72
Buffer Zone a


• In Refinery core zone, Analabadi has 607 households. This is a rehabilitation colony
consisting of eleven displaced hamlets of the refinery. It also has a mixed
population.
• Second village Ambogam in the refinery core zone consists of 133 households,
mostly tribal. This village is almost located in the refinery premises (1.2 km).
9

 These villagers are the victim of all immediate environmental impact. In
Refinery buffer zone, village Mujanga has 259 households, dominated by
scheduled caste and scheduled tribe population. Marchimal is another village in
this area with 77 households with a mixed population but no tribal.
 In the Ash and Red mud Pond (ARMP) core zone, Goudaguda is a village with
73 households. All the households belong to Gouda caste, whose main
occupation is taken as livestock rearing. Both Kharaguda and Champapodar in
this area are displaced villages.
 Now they are resettled in one place but they are different villages. Kharaguda has
33 households with a mixed population and Champapadar has 85 households,
dominated by other caste.
 In the ARMP buffer zone Charangaguda is a village with 72 households,
dominated by scheduled caste and scheduled tribe population. Most of them have
lost land because of the railway track of NALCO.

10

Displacement and Compensation Scenario

Study Zone Total Affected Assets lost Compensation Received
HHs HHs Land House Land House
72
Mining Core 142 72 0 0 NA
(50.70)
138
Mining Buffer 280 138 0 136 NA
(49.29)
383
Refinery Core 740 141 361 129 344
(51.76)
34
Refinery Buffer 336 34 0 28 NA
(10.12)
128
ARMP Core 191 86 103 85 103
(67.02)
38(52.78)
ARMP Buffer 72 38 0 36 NA

 In the mining core zone, 51 percent of households have lost their agricultural
land. For this none of the households have received compensation
 These villagers were practicing podu on top of the hills and hill slopes. After
getting the permission to mine that area, NALCO evicted these villagers from
cultivating those patches of land.
 As these displaced households do not have patta for their agricultural lands hence
they have not received any compensation.
 In the mining buffer zone 49 percent of households have lost their agricultural
11
land.

 These villagers have lost land because of the rehabilitation colony, conveyor
belt and another road which connects the mining to the refinery site.
 Here almost all the households have received compensation and only 2
households have not received because of unclear document. The compensation
package is Rs 1000 to 1500 per acre for dry land and Rs 2500 to 5000 per acre
for wet land.
 In the Refinery core zone 52 percent of the households are affected by the
refinery out of the total (383) affected households. Of which 37 percent (141
households) have lost their agricultural land. Out of the total households (383),
129 households have received compensation and for others it is still pending.
 On the other hand 94 percent of the total affected households (361
households) have lost their home and homestead area, of which 344
households have received compensation (Rs. 500 to Rs. 5000 according to
classification like hut, semi-pucca, pucca etc).
 These households are also settled in the rehabilitation colony and one job (per
house) in NALCO.
 In the Refinery buffer zone only 10 percent (34) of the total households are
affected. They have lost their agricultural land for red mud pond.
 Out of 34 households, 28 households have received compensation and for
others it is pending. 12

 In the ARMP core zone out of total 191 households, 67 percent (128) of the
households are affected.
 All households have received compensation except one. In this area 80
percent of the households have lost their home and homestead area
 In the ARMP buffer zone out of the total 72 households 53 percent (38) of
the households are affected (agriculture land). Of which 36 households are
compensated.

13

Household Main Occupation: Pre and Post Displacement
Main Mining Core Zone Mining Buffer Zone
Occupation Pre Post Pre Post
Farmers 75 (63.6) 193 (81.8) 78 (33.1)
118 (100)
Wage Labours 0 43 (18.2)
Others 0 9 (3.8)
NALCO 43 (36.4) 149 (63.1)
Contract/Wage NA
Employee

Total 118 (100) 118 (100) 236 (100) 236 (100)

 In the mining core zone, all households main occupation was farming in the pre
displacement period.
 However, in the post displacement period 36 percent are engaged in NALCO as
contract or wage employee. They are not permanent employee of NALCO.
 NALCO has given the contract works to contractors. These contractors will
recruit the contract and wage labour. They do not have job security and they
received weekly payment.
 The work category has been divided into four categories are; High Skilled Works,
Skilled Works, Semi Skilled Works and Un-skilled Works.
14

 According to work category the wage rates are: High Skilled Worker - Rs. 330
per day, Skilled Worker - Rs. 280 per day, Semi Skilled Worker - Rs. 220 per
day, Un-skilled Worker - Rs. 190 per day.

 In the mining buffer zone, farmers dominated the main occupation (82 percent) in
the pre displacement period followed by wage labourers.

 In the mining buffer zone, farmers dominated the main occupation (82 percent) in
the pre displacement period followed by wage labourers.
 However, this percent has reduced in the post displacement period and now
NALCO contract and wage labourers are the main category.

15

Main Refinery Core Zone Refinery Buffer Zone
Farmers 71 (10.1) 165 (54.8) 100 (33.2)
665 (94.5)
Wage Labours 27 (3.8) 207 (29.4) 132 (43.9) 172 (57.1)
Others 12 (1.7) 33 (4.7) 4 (1.3) 19 (6.3)
NALCO 98 (13.8) NA 10 (3.3)
Contract/Wage NA
Employee
NALCO NA 295 (41.9) NA
Employee
Total 704 (100) 704 (100) 301 (100) 301 (100)

 In the Refinery core zone farmers dominated the main occupation in the pre
displacement period (94.5 percent).
 However, in the post displacement period majority are NALCO permanent
employees.
 As many households have lost their homestead area in this zone, they have
received this job in their compensation package. This is followed by wage
labourers and NALCO contract employee.
 In the refinery buffer zone, in the pre displacement period both farming and
wage labour has a major role. However, in the post displacement phase wage
labour has outweighed farming.
16
 As the extent of displacement is very less here so workers employed in NALCO.

 In the Refinery core zone farmers dominated the main occupation in
the pre displacement period (94.5 percent).

 However, in the post displacement period majority are NALCO
permanent employees. As many households have lost their homestead
area in this zone, they have received jobs in their compensation
package. This is followed by wage labourers and NALCO contract
employee.
 In the refinery buffer zone, in the pre displacement period both farming
and wage labour has a major role.

 However, in the post displacement phase wage labour has outweighed
farming.

17

Main ARMP Core Zone ARMP Buffer Zone
Farmers 16 (8.4) 38 (52.8) 1 (1.4)
164 (85.9)
Wage Labours 22 (11.5) 90 (47.1) 34 (47.2) 65 (90.3)
Others 5 (2.6) 7 (3.7) 0 3 (4.2)
NALCO 9 (4.7) NA 3(4.2)
Contract/Wage NA
Employee
NALCO NA 69 (36.1) NA
Employee
Total 191 (100) 191 (100) 72 (100) 72 (100)

 In the ARMP core zone also situation is same in the pre displacement period. The
main occupation is dominated by farming.
 However, in the post scenario it is wage labour and NALCO employee. Here also as
the households have lost their homestead land they have permanent employment in
NALCO.
 In the ARMP buffer zone, main occupation was dominated by farmers and wage
labourers. However, in the post displacement period it is dominated by wage labour.

18

Profile of the Sample Villages (12) and its Important
Characteristics

 The caste and sub-caste particulars of the sample households have been
presented.
 A large majority of the households belong to Scheduled Tribes (49 percent)
followed by ‘others’ (19.2 percent), Scheduled Castes (17.2 percent), and ‘Other
Backward Castes’ (14.6 percent).

19

Landholding details of the Households in Sample Villages
Mining Area Refinery Area ARMP
Core Buffer Core Buffer Core Buffer
Category of
Chara
Occupations
Kapsiput Kardiguda Putraghati Analabadi Ambogam Mujanga Marichamal Goudaguda Khoraguda Champapodar ngagu
da
Large Farmers % 30 (21.1) 0 (0.0) 3 (1.5) 10 (1.6) 5 (3.8) 20 (7.7) 0 (0.0) 5 (6.8) 0 (0.0) 0 (0.0) 7 (9.7)
Medium % 15 (10.6) 16 (20.3) 15 (7.5) 20 (3.3) 20 (15) 50 (19.3) 10 (13) 5 (6.8) 0 (0.0) 2 (2.4) 0 (0.0)
8
Small Farmers % 35 (24.6) 15 (19) 25 (12.4) 20 (3.3) 16 (12) 60 (23.2) 12 (15.6) 34 (46.6) 0 (0.0) 0 (0.0)
(11.1)
Marginal % 30 (21.1) 15 (19) 70 (34.8) 20 (3.3) 70 (52.6) 84 (32.4) 34 (44.2) 20 (27.4) 3 (9.1) 0 (0.0) 5 (6.9)
47
Landless % 30 (21.1) 33 (41.8) 58 (28.9) 231 (38.1) 20 (15) 35 (13.5) 15 (19.5) 4 (5.5) 0 (0.0) 31(36.5)
(65.3)
other Salaried % 2 (1.4) 0 (0.0) 30 (14.9) 306 (50.4) 2 (1.5) 10 (3.9) 6 (7.8) 5 (6.8) 30 (90.9) 52 (61.2) 5 (6.9)
72
Total HHs 142 (100) 79 (100) 201 (100) 607 (100) 133 (100) 259 (100) 77 (100) 73 (100) 33 (100) 85 (100)
(100)

 The data on land holding of the households reveal that in mining area-both in core and buffer
zones, small and marginal farmers are in majority (40-45 percent) followed by landless labour
(around 30 percent).
 In kasiput village large farmers are significant (21 percent). Similarly in Kardiguda medium
farmers are considerable (20 percent). In the refinery areas the land holding profile is quite
different, particularly in core zone (50.4 percent are others/salaried 38 percent are landlers in
Analabadi village).
 This is due to large number of project affected households got employment in the company.
However, in the buffer zone of the refinery small and marginal farmers are predominant followed
by landless labour.
 In the ARMP core zone, there are hardly any medium, small farmers; large segment of them are
others/salaried (91 percent in Khoraguda and 61 percent in Champapodar) followed by landless
20
labour.

Availability of Infrastructural Facilities in the Sample Villages
Drinki
Electri Provid Provide Educati Provid Provid provid Irrigati
Roads Health ng provided Community provided
Area Zone Village city ed by d by on ed by ed by ed by on
Avail avail water by whom avail by whom
Avail whom whom Avail whom whom whom Avail
Avail

Core Kapsiput Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT No -
Kardiguda Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT No -
Mining
Buffer
Putraghati Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes NALCO
NALCO NALCO NALCO
Analabadi Yes & Yes NALCO Yes & Yes & Yes NALCO Yes GOVT Yes NALCO
GOVT GOVT GOVT
Core
NALCO NALCO
Refinery Ambogam No - Yes & Yes GOVT Yes & Yes GOVT Yes GOVT Yes NALCO
GOVT GOVT
Mujanga Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT No -
Buffer Maricham
Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT
al
NALCO NALCO NALCO
Goudagud
No - Yes GOVT Yes & Yes & Yes & Yes GOVT No -
a
GOVT GOVT GOVT
NALCO NALCO
Core Khoraguda Yes & Yes NALCO Yes & Yes NALCO Yes NALCO No - No -
Ash & Red GOVT GOVT
Mud Pond
NALCO NALCO
Champapo
Yes & Yes NALCO Yes & Yes NALCO Yes NALCO No - No -
dar
GOVT GOVT
Charangag
Buffer No - No - Yes GOVT Yes GOVT Yes GOVT Yes GOVT No -
uda
Kadamgud
Control Area Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT Yes GOVT No -
a

Educational Facilities in the Sample Villages
Primary Upper
Higher secondary School Girijan Vidya Vikaskendra Tribal Ashram schools
School Primary school
Area Zone Village
Distanc Plac
Avail Avail Distance Place Avail Distance Place Avail Distance Place Avail Distance Place
e e
Bitharag
Core Kapsiput Yes 0 0 No 13 Purhoda No 13 Purhoda No 3 No 13 Purhoda
uda
Mathalp Mathalp Putraghat
Mining Kardiguda Yes 0 0 No 7 No 7 No 34 Koraput No 3
ut ut i
Buffer
Damanj
Putraghati Yes 0 0 Yes 0 0 No 5 No 32 Koraput Yes 0 0
odi
Analabadi Yes 0 0 Yes 0 0 Yes 0 0 No 25 Koraput Yes 0 0
Core Mathalp
Ambogam Yes 0 0 Yes 0 0 No 3 No 28 Koraput No 10 Pudaguda
ut
Refinery Runjagu Pudagud Runjagu Bukdugud
Mujanga Yes 0 0 No 5 No 8 No 5 No 6
da a da a
Buffer
Mathalp Semiligu
Marichamal Yes 0 0 Yes 0 0 No 4 No 10 No 4 Mathalut
ut da
Mathalp Semiligu
Goudaguda Yes 0 0 Yes 0 0 No 4 No 10 No 4 Mathalut
ut da
Damanj Sunnabed
Core Khoraguda Yes 0 0 Yes 0 0 No 5 No 22 Koraput No 7
Ash & Red odi a
Mud Ponds Champapo Damanj Sunnabed
Yes 0 0 Yes 0 0 No 5 No 22 Koraput No 7
dar odi a
Charangagu Sunnabe Sunnabe Sunnabed
Buffer Yes 0 0 No 5 No 5 No 18 Koraput No 5
da da da a
Dolaigu Dolaigud Sunnabed
Control Area Kadamguda Yes 0 0 No 5 No 5 No 25 Koraput No 12
da a a

 Primary schools exist in all the villages; upper primary schools are available in seven
villages, higher secondary schools exist only in one village, while ‘Girijan Vidya Vikas
Kendra’ (run by ITDAs) do not exist in any of the villages, people have to go to either
Koraput or Semiliguda to avail this facility.
22

 Further, although hospital (territory level) does not exist in any of the
sample villages, Primary Health Centre (PHC) did exist only in one
village (Analabadi); two sample villages have health sub-centres and no
Veterinary Hospitals available in any of the villages.

 The situation regarding other infrastructure such as metallic road, ‘all
weather roads’ is better in sample villages. Further, half of the sample
villages have ICDS centers and strikingly only two villages have Fair
Price Shops/PDS outlets.

23

Health Facilities in Sample Villages
Primary Health sub
Hospital PHC Veterinary Hospital
centre
Area Zone Village
Ava Distan Ava Distan Ava Distan Ava Distan
Place Place Place Place
il ce il ce il ce il ce
Kakirigum
Bitharag Bitharag Bitharag
Core Kapsiput No 3 No 3 No 3 No 7 ma
uda uda uda
Minin
Damanjo Mathalpu Mathalpu Mathalput
g Area Kardiguda No 7 No 7 No 7 No 7
Buff di t t
er Damanjo Mathalpu Mathalput
Putraghati No 5 No 5 Littiguda No 5 No 5
di t
0
Analabadi Yes 0 0 Yes 0 0 Yes 0 0 Yes 0
Core
Mathalpu Mathalpu Mathalpu Mathalput
Refine Ambogam No 3 No 3 No 3 No 3
t t t
ry
Pudagud Pudagud Pudagud Pudaguda
Area Mujanga No 8 No 8 No 8 No 8
Buff a a a
er Marichama Damanjo Mathalpu Mathalpu Mathalput
No 4 No 4 No 4 No 4
l di t t
Damanjo Mathalpu Mathalpu Mathalput
Goudaguda No 4 No 4 No 4 No 4
di t t
Ash & Core Khoraguda Yes Damanjo Mathalpu Mathalpu Mathalput
5 No 5 No 5 No 5
Red di t t
Mud Champapo Damanjo Mathalpu Mathalpu Mathalput
Yes 5 No 5 No 5 No 5
Ponds dar di t t
Buff Charangag Sunnabe Sunnabe Sunnabe Dumbriput
No 5 No 5 No 5 No 10
er uda da da da
Control Kadamgud Sunnabe Kudali
No 12 No 15 Kudali No 15 Kudali No 15
Area a da

24

Other Infrastructure Facilities in the Sample Villages

All Weather
Metalled Road Bus stop Post office PHC Sub center ICDS PDS/Fair price
road
Area Zone Village
Distan Dista Distan Distanc Distanc Distanc Distanc
Avail Place Avail Place Avail Place Avail Place Avail Place Avail Place Avail Place
ce nce ce e e e e

Junctio Bithara Bithara
Core Kapsiput Yes 0 0 Yes 0 0 No 3 No 3 No 3 Yes 0 0 No 3 Girliput
n guda guda

Putrag Littigud Mathal Littigud
Mining Kardiguda Yes 0 0 Yes 0 0 No 2 No 3 No 7 Yes 0 0 No 2
hati a put a
Buffer
Putrag Littigud Mathal Littigud
Putraghati Yes 0 0 Yes 0 0 No 1 No 5 No 5 Yes 0 0 No 5
hati a put a
Analabadi Yes 0 0 Yes 0 0 Yes 0 0 Yes 0 0 Yes 0 0 Yes 0 0 Yes 0 0
Core Mathal Littigud Mathal Littigud
Ambogam Yes 0 0 Yes 0 0 No 3 No 5 No 3 Yes 0 0 No 5
put a put a
Refinery Daman
Mujanga Yes 0 0 Yes 0 0 No 7 Yes 0 0 Yes 0 0 Yes 0 0 Yes 0 0
jodi
Buffer
Mathal
Marichamal Yes 0 0 Yes 0 0 Yes 0 0 Yes 0 0 No 4 Yes 0 0 Yes 0 0
put

Benji Mathal Charan Mathal Gouda Charan
Goudaguda Yes 0 0 No 2 No 4 No 3 No 4 No 0.5 No 3
di put gul put guda II gul

Daman Damanj Mathal Bodug Ghattu
Core Khoraguda Yes 0 0 Yes 0 0 No 5 No 5 No 5 No 5 No 7
Ash & Red jodi odi put uda guda
Mud Pond Champapoda Daman Damanj Mathal Bodug Ghattu
Yes 0 0 Yes 0 0 No 5 No 5 No 5 No 5 No 7
r jodi odi put uda guda

Charangagud Choga Chog Sunna Sunnab Sunnab Ghattu
Buffer No 2 No 2 No 5 No 5 No 5 Yes 0 0 No 4
a n an beda eda eda guda

Semilig Semilig Raniko Raniko
Control Area Kadamguda Yes 0 0 Yes 0 0 No 2 Center No 6 No 6 No 1 No 1
uda uda na na

25

 CPRs constitute significant source for livelihood enhancement of
the poor in the villages. Mostly their access is open to all the
sections of the villages.
 NALCO has acquired village common land in eight out of twelve
sample villages.
 Unfortunately no compensation was paid by NALCO to village
communities and the reason offered is that these are forest lands and
having no ‘pattas’.
 Even in case of grazing land, the same scenario is observed. The
loss of these important resources has huge bearing on the live stock
holding capacity of the communities.

26

Job Benefits Offered by NALCO
If yes how
permanent job opportunities in many hhs got monthly
Area Zone Village If no, state reason Nature of job type of job
NALCO permanent income
employment
Nalco says that job were offered to
Core Kapsiput No those who have lost home and 0 0 0 0
homestead
Mining Area Nalco says that job were offered to
Kardiguda No those who have lost home and 0 0 0 0
Buffer
homestead
Putraghati No Still pending 0 0 0 0
Messengers,
Peons, Semi-skilled 30000 to
Analabadi Yes 0 317
Operators, & Un-skilled 60000
Core helpers etc
Ambogam No those who have lost home and 0 0 0 0
Refinery Area homestead
Mujanga No those who have lost home and 0 0 0 0
homestead
Buffer
Marichamal No those who have lost home and 0 0 0 0
homestead
Goudaguda No those who have lost home and 0 0 0 0
homestead
Messengers,
Khoraguda Yes 0 20
Core Operators, & Un-skilled 60000
Ash & Red Mud helpers etc
Pond Messengers,
Champapodar Yes 0 52
Operators, & Un-skilled 60000
helpers etc
Buffer Charangaguda No those who have lost home and 0 0 0 0
homestead
Control Area Kadamguda No Not affected area - Control village 0 0 0 0


 The data on job benefits offered to HHs by NALCO - except in three villages
(one village namely Analabadi in the core zone of refinery and two villages
namely Kharaguda and Champapodar in the core zone of Ash & Red Mud
Ponds) no permanent jobs were offered by NALCO.

 NALCO says that jobs were offered to only those villages whose lands and
homesteads have been lost. In the process partially or indirectly affected villages
were not benefitted by NALCO jobs even though they lost employment
opportunities in their native villages.

 The natures of jobs offered were also mostly unskilled like messengers, peons,
helpers, operators etc. Since it is govt. employment, the monthly income
(salaries) given to these job holders is substantial.

28

 Although NALCO did not offer large scale permanent employment, it is
offering contract employment in all the villages.

 However, the number of HHs getting contract employment is varying
across the sample villages.
 In Refinery Core Zone village, Analabadi as many as 220 HHs are
getting contract employment, there few villages where very few
households (as low as three, twelve and twenty HHs) are getting contract
employment.

 It may be due to the vicinity factor of these villages in relation to the
Refinery location.

 The wages offered is inform across all the villages and ranging between
Rs.197-290 per day and their monthly income works out around
Rs.5000/- to 6000/-.

29

Housing Particulars of the Sample HHs (By Type)
Mining Refinery ARMP
Type of House
Core Zone Buffer zone Core Zone Buffer zone Core Zone Buffer zone

Thatched . 2 (2.7) 1 (0.5) 5 (5.7) 3 (7.5) 2 (2)

Semi Pucca 38 (100) 70 (94.6) 176 (83.4) 83 (94.3) 35 (87.5) 21 (84)

Pucca . 2 (2.7) 34 (16.1) . 2 (5) 2 (8)

Grand Total 38 (100) 74 (100) 211 (100) 88 (100) 40 (100) 25 (100)

• The data on the housing in the mining core zone - all the 38 HHs (100 percent)
live in semi pucca houses whereas in buffer zone also, a majority of them (94.6
percent) have semi pucca houses.
• It is significant to know that very few HHs in the mining area have pucca
houses. In the refinery area core zone, a large majority (83.4 percent) of the
HHs live in semi-pucca houses and a small number of HHs (16.1 percent) do
live in pucca houses, while in buffer zone a large majority of the HHs (94.3
percent) live in semi-pucca houses and a small number of HHs (5.7 percent) do
live in thatched houses.
• In ARMP area also predominantly have semi-pucca houses. On the whole, it
may be observed that in all project areas a large majority live in semi-pucca
houses and very few HHs live either in pucca or in thatched houses 30

Economic Activities of the Individuals (Primary)
Core Zone Buffer Zone Core Zone Buffer Zone Core Zone Buffer Zone
Occupations Male Female Total Male Female Total Male Female Total Male Female Total Male Female Total Male Female Total
20 37 57 101 142 139 58 42
Agriculture (21.3) (39.4) (60.6) 35 (20) 66 (37.7) (57.7) 56 (14.5) 86 (22.3) (36.9) 64 (28.6) 75 (33.5) (62.1) 23 (23.2) 35 (35.4) (58.6) 19 (30.2) 23 (36.5) (66.7)
1 2 22 8 5
Wage Labour (1.1) (2.1) 3 (3.2) 4 (2.3) 12 (6.9) 16 (9.1) 12 (3.1) 10 (2.6) (5.71) 7 (3.1) (3.6) 15 (6.7) 4 (4.0) (5.1) 9 (9.1) 5 (7.9) 4 (6.3) 9 (14.3)
6 106 1 16
NALCO Employ . . . . . . 100 (26.0) (1.6) (27.5) 1 (0.4) (0.4) 16 (16.2) (16.2)

NALCO
Contract/Wage 29 4 33 48 86 17 59 1 15 1
Labour (30.9) (4.3) (35.1) 42 (24) 6 (3.4) (27.4) 72 (18.7) 14 (3.6) (22.3) 42 (18.8) (7.6) (26.3) 14 (14.1) (1.0) (15.2) 6 (9.5) (1.6) 7 (11.1)
1 5 29 2 1 1
Others (1.1) 1 (1.1) 7 (4) 3 (1.7) 10 (5.7) 24 (6.2) (1.3) (7.53) 8 (3.6) (0.9) 10 (4.5) (1.0) 1 (1.0) 4 (6.3) (1.6) 5 (7.9)
51 43 94 175 385 224 99 63
Total (54.3) (45.7) (100) 88 (50.3) 87 (49.7) (100) 264 (68.6) 121 (31.4) (100) 122 (54.5) 102 (45.5) (100) 57 (57.6) 42 (42.4) (100) 34 (54.0) 29 (46.0) (100)


• The various economic activities of the individuals of the sample households
reveal that the members are engaged in diverse occupations in all the regions.

31

Mean Household Income of Villages
Area Zone Mean HHs Income (Rs) Mean Per capita Income (Rs.) Mean HHs size (No.)

Core Zone 55472.6 12114.7 4.6
Mining
Buffer Zone 57219.6 13484.9 4.2

Core Zone 225875.2 44541.7 5.1
Refinery
Buffer Zone 57874.7 12637.6 4.6

Core Zone 117291 19630.3 6
ARMP
Buffer Zone 58148 11182.3 5.2


32

Landholding details of the Sample Households in Sample Villages

Mining Area Refinery Area ARMP
Category of Occupations

Large Farmers 0 (0.0) 1 (1.4) 5 (2.4) 7 (8.0) 1 (2.5) 1 (4)

Medium Farmers 6 (15.8) 2 (2.7) 7 (3.3) 6 (6.8) 4 (10) 5 (20)

Small & Marginal Farmers 22 (57.9) 43 (58.1) 38 (18.0) 49 (55.7) 12 (30) 13 (52)

Farm & non-Farm Labour 10 (26.3) 28 (37.8) 60 (28.4) 25 (28.4) 7 (17.5) 6 (24)

Others (Salaried) 0 (0.0) 0 (0.0) 101 (47.9) 1 (1.1) 16 (40) 0 (0.0)

Total HHs 38 (100) 74 (100) 211 (100) 88 (100) 40 (100) 25 (100)


33

Household having Livestock in Bauxite Mining Area

Livestock
Core Zone Buffer Zone Core Zone Buffer Zone Core Zone Buffer Zone

47 22 13
Yes 22 (57.9) 33 (44.6) 64 (30.3)
(53.4) (55) (52)

41 18 12
No 16 (42.1) 41 (55.4) 147 (69.7)
(46.6) (45) (48)

40 25
Total 38 (100) 74 (100) 211 (100) 88 (100)
(100) (100)


• Possession of livestock gives incremental and additional incomes to the rural
families, which is very common. Out of the total 476 households, 201 HHs
possess livestock and the rest (275) do not have any livestock assets.

34

Details of Household Physical Assets

Particulars Core Zone Buffer Zone Core Zone Buffer Zone Core Zone Buffer Zone

% of HHs % of HHs % of HHs % of HHs % of HHs % of HHs

Cycle 23.7 55.4 66.8 55.7 52 80

Radio 2.6 4.1 7.6 9.1 10 16

Fan 0.00 13.5 66.4 18.2 37.5 0.00

Almirah 0.00 13.5 51.7 12.5 27.5 0.00

TV 0.00 24.3 63.5 18.2 37.5 0.00

Fridge 0.00 1.4 26.5 1.1 27.5 0.00

Scooter 5.3 17.6 47.9 10.2 47.5 0.00

Car 0.00 2.7 9 0.00 0.00 0.00

Watch 44.7 66.2 86.7 60.2 82.5 68

Agricultural Assets 71.1 68.9 23.2 78.4 52.5 64


• The data on the households having various physical assets such as Cycle, Radio,
Television, Fan, Almariah, Fridge, Scooter, Car, Watch, agricultural assets etc., reveal
that having agricultural assets in large number in most of the regions.
• It is very striking to note that only in refinery core zone a significant proportion have
Television (63.5 percent), Fridges (26.5 percent) and Scooter (47.9 percent) and
ARMP core zone (47.5 percent have Scooter, 7.5 percent have Television and 27.5
percent have fridges). This is again due to their permanent employment in the
factory.
35

Households Source of Borrowing
Sources

Bank 2 (33.3) 12 (80) 57 (69.5) 18 (60) 14 (93.3) 6 (54.5)

Cooperative Society 1 (16.7) 0.00 4 (4.9) 2 (6.7) 0.00 0.00

SHG 2 (33.3) 2 (13.3) 6 (7.3) 7 (23.3) 0.00 5 (45.5)

Money Lender 1 (16.7) 1 (6.7) 15 (18.3) 3 (10) 1 (6.7) 0.00

Total 6 (100) 15 (100) 82 (100) 30 (100) 15 (100) 11 (100)


• A total number of 159 hhs are found borrowing loans from different sources
out of total sample of 476 households in the project area.
• Sourcewise borrowing reveal that banks are the chief lenders to the sample hhs
(33.3 percent in mining core area and 80.0 percent in buffer zone, 69.5 percent
in refinery core zone and 60.0 percent in buffer zone; 93.3 percent in ARMP
core zone and 54.5 percent in buffer zone) followed Self Help Groups (SHGs).

36

Household Health Status
HHs Health Status
Area Zone
Excellent Good Fair Partial Grand Total
Core Zone 1 38
. 32 (84.2) 5 (13.2) (2.6) (100)
Mining
Buffer Zone 1 74
. 47 (63.5) 26 (35.1) (1.4) (100)
Core Zone 1 211
(0.5) 140 (66.4) 61 (28.9) 9 (4.3) (100)
Refinery
Buffer Zone 1 88
. 53 (60.2) 34 (38.6) (1.1) (100)
Core Zone 1 40
. 21 (52.5) 18 (45) (2.5) (100)
ARMP
Buffer Zone 25
. 10 (40) 15 (60) . (100)


• A qualitative assessment was done in the project area and based on that
assessment health status was ranked as ‘excellent’, ‘good’, ‘fair’, ‘partial’.
• A large majority of them have expressed their health status as ‘good’ (84.2
percent in mining core zone and 63.5 percent in buffer area; 66.4 percent in
refinery core zone and 60.2 percent in buffer zone; 52.5 percent in ARMP core
zone and 40.0 percent in buffer zone) followed by ‘fair’. Very less number of
hhs have expressed their health status as ‘partial’.

37

Views on Existence of Plant/Mining and Its Influence
Area Zone Beneficial partially Helpful No Problems Partially Hazarding Grand Total

33 5
Core . . 38 (100)
(86.8) (13.2)
Mining
7 61 6
Buffer . 74 (100)
(9.5) (82.4) (8.1)
24 56 111 20
Core 211 (100)
(11.4) (26.5) (52.6) (9.5)
Refinery
1 23 56 8
Buffer 88 (100)
(1.1) (26.1) (63.6) (9.1)
3 1 15 21
Core 40 (100)
(7.5) (2.5) (37.5) (52.5)
ARMP
10 4
Buffer . 11 (44) 25 (100)
(40) (16)


• The views of the sample households on the influence of the plant/mining in the
project area shows that only small proportion mentioned that it is beneficial.
• A large majority of them expressed that there are no problems with the plant/
mining.
• There are few households in the project area that mentioned about the
influence of the project as ‘Partially Hazarding’.

38

Details of Household Total Income from Various Sources
Monthly Income*
The figures in
NALCO
Wage Total Annual brackets are
Area Zone Agriculture NALCO Salaries Wage/Contract Others Total HHs
Works Income average monthly
Salaries
income of the
household
1568180 73930
Core Zone 395250 (18.5) 0 97200 (4.6) 2134560 (100) 177880 (4681) 38
(73.5) (3.5)
Mining
2708530 483780 446460
Buffer Zone 646200 (15.1) 0 4284970 (100) 357080.8 (4825) 74
(63.2) (11.3) (10.4)
2318580 4996914 993470 2112740
Core Zone 35750449 (77.4) 46172153 (100) 3847679 (18235) 211
(5) (10.8) (2.2) (4.6)
Refinery
1485575 720000 2954160 755950
Buffer Zone 366210 (5.8) 6281895 (100) 523491.3 (5949) 88
(23.6) (11.5) (47) (12)
389800 3171300 1059960 184300
Core Zone 72275 (1.5) 4877635 (100) 406469.6 (10162) 40
(8) (65) (21.7) (3.8)
ARMP
276000 405400 393520
Buffer Zone 386500 (26.4) 0 1461420 (100) 121785 (5114) 25
(18.9) (27.7) (26.9)


• The incomes of the sample households from the various sources clearly show
that NALCO salaries constitute chief source (incase of refinery core zone (77.4
percent) and ARMP core zone 65.0 percent).
• Followed by NALCO wage/contract salaries
• The incomes from agriculture, wage works and others are not very significant.

39

Details of New House given by the NALCO
If Yes, New
House
New House Received by respondents Type of house If Not reason for not receiving new house
Constructed by
whom
Area Zone
Family
Not affected Not lost home
NA Yes No Total NALCO Tined Roof member Pending
household and homestead
received house

Core . . 38 (100) 38 (100) . . 20 (52.6) . . 18 (47.4)
Mining
Buffer . . 74 (100) 74 (100) . . 34 (45.9) . . 40 (54.1)

Core . 154 (73) 57 (27) 211 (100) 154 (100) 154 (100) 14 (24.6) 5 (8.8) 2 (3.5) 36 (63.2)
Refinery
Buffer . . 88 (100) 88 (100) . . 45 (51.1) . . 43 (48.9)

Core . 16 (40) 24 (60) 40 (100) 16 (100) 16 (100) 5 (20.8) . 1 (4.2) 18 (75)
Ash & Red
Mud Pond Buffer . . 25 (100) 25 (100) . . 3 (12) . . 22 (88)


• The data on the houses allotted by NALCO to the sample households clearly
show that only in refinery core zone (73.0 percent) and ARMP core zone (40.0
percent) significant portion of the households received new houses given by
NALCO.

40

Households Expectations from NALCO
Expectation

Area Zone Expecting
Job to Job offer for all Access health card Local priority for
NA Job regularization husband’s Others Grand Total
hereditary Affected People for all all works
job/Father's job

Core 0 (0.0) 0 (0.0) 5 (13.2) 8 (21.1) 25 (65.8) 0 (0.0) 0 (0.0) 0 (0.0) 38 (100)
Mining
Buffer 0 (0.0) 0 (0.0) 23 (31.1) 2 (2.7) 40 (54.1) 0 (0.0) 8 (10.8) 1 (1.4) 74 (100)

Core 0 (0.0) 94 (44.5) 47 (22.3) 2 (0.9) 11 (5.2) 23 (10.9) 16 (7.6) 18 (8.5) 211 (100)
Refinery
Buffer 0 (0.0) 0 (0.0) 7 (8) 6 (6.8) 44 (50) 0 (0.0) 14 (15.9) 17 (19.3) 88 (100)

Core 0 (0.0) 10 (25) 11 (27.5) 0 (0.0) 11 (27.5) 0 (0.0) 4 (10) 4 (10) 40 (100)
ARMP
Buffer 0 (0.0) 0 (0.0) 3 (12) 19 (76) 1 (4) 0 (0.0) 0 (0.0) 2 (8) 25 (100)


• The expectations of the affected households from the NALCO are in the nature
of ‘Job regularisation’ to those who are on contract, followed by ‘Job offer for
all affected people’.
• And ‘others’ that include adequate water facility, access to free education, new
houses for R & R colony, free electricity, monitoring of drainage and cleanliness
of the roads etc.
41

Conclusions and Way Forward
• The most vulnerable sections, viz., scheduled tribes and scheduled castes
who have lost lands, houses and other assets could not able to get back
their livelihood status as a result of cash compensation policy.
• The fact that land scarcity was not there in 80’s as is felt now, Nalco
should have adopted land to land policy.
• As a result, the above sections were reduced from farmers to casual
laborers in farm and non-farm sectors.
• In the year 1984 – 85, NALCO started Peripheral Development
Programme.
• The area which is 10 Kms from Refinery and Mining considered as a
Peripheral Area. Under this programme, NALCO has promised to provide
all the facilities like health, education, roads, drinking water and
infrastructure development (school building etc.)

42

• The NALCO’s Employment policy is that once the displaced persons, who were
provided with employment happened to die due to ill health, their spouses
were not provided jobs even on humanitarian grounds, sounds faulty.
• Another issue of concern is that NALCO is getting water from the Kerandi River
which is 8 km far away from the refinery.
• The pipeline is connected to carry water from the river. Due to laying of water
pipeline some of the villages have lost their agriculture lands.
• It was told that during the pilot survey people made request to the NALCO to
get water access for drinking from the pipeline but NALCO has simply denied.
• People are saying that there is huge water going wastage due to leakages.
• Besides the problems enlisted above, there are certain environmental and
ecological problems observed in the field.
• In Goudaguda village, there are two pipelines; one is Caustic Soda pipeline and
another one is Septic water pipeline which adjacent to this village, due to
pipeline leakages the Caustic mud and septic water flows into agriculture fields
hence the agriculture fields fertility is affected and the crop production has
been decreased.

43

• Transport is the major problem from refinery to refinery surrounding
villages.
• Male employees, are using bicycle or motor cycle for their transport
and women trek long distances by walk.
• It is very difficult because they have to walk 9 to 10 Kms on Kutcha
road to reach refinery and time takes more than one hour.
• They are expecting NALCO to provide transport facility to reach
refinery and on time.
• During Land Acquisition process NALCO has promised to give
employment opportunity to all the affected persons in the household.
• But later NALCO has disagreed to provide employment opportunity to
every affected person in the household.

44

• The affected households became addicted to certain social evils such as
liquor and drugs (particularly among youth)
• It was found that in Analabadi rehabilitation colony most of the
employees are addicted to alcohol and tobacco chewing etc.
• On the whole, resettlement mechanism adopted by NALCO is not very
satisfactory and more over it is found that NALCO did not have CSR
initiative.
• NALCO has generally passed the money towards Resettlement and
rehabilitation of PAFs to the Government of Odisha and under the
leadership of the District Collector.

45

Way forward
• the NALCO has to rethink about affected people’s problems and do some of the
welfare activities for the people interms of livelihoods promotion, Health &
Education, Skill Development Activities, Infrastructure facilities etc.
Livelihoods:
• A comprehensive livelihood portfolio needs to be created for the project
affected population in all area interms of providing Income Generation Activities
(IGAs) and developing skills among the local communities. NALCO needs to this
in conjunction with various development departments of the district.
Basic Amenities

Health:
• Nalco has promised to provide health service to the all affected people from the
NALCO surrounding villages.
• NALCO has issued health cards to the affected people who got permanent
employment in the NALCO and in addition to two villages i.e., Ambogam and
Goudaguda villages because these two villages are more affected villages by the
refinery and ARMP. 46

Education:
•NALCO is giving free education to the affected people who got employment in
NALCO, rest are not accessing the free education. In this area, the literacy rate
is very less especially in women literacy rate.
•The reason for the above, the people do not have access better education.
•Incase NALCO provides free education to the affected villages, there will be
much more benefits to the girl child to get education. NALCO must think on this
service.

Drinking Water:
•In all affected villages, people do not have access to protected water.
Mostly, they depend on stream water for the drinking and other household
needs.
•Due to contaminated water people are suffering health problems like
water born disease etc.
•If NALCO can take this initiative, many people from the surrounding villages
are benefited and they can access protected drinking water facility.
47

Skill Development Activities and Sustainable
Livelihoods
• NALCO could not provide any skill development activities to the affected
people. Most of the affected people main livelihood source is agriculture
and NALCO contract/wage labour works.
• Awareness activities and also some training programs should be taken
up by the NALCO with some development agency/ the Government to
make these people to have alternative livelihoods for their future
sustainable livelihoods.
• Skill development trainings would certainly help the women folk to opt
for alternative livelihoods

48

How Bauxite Mining Affects Livelihoods in Odisha's Koraput Region

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How Bauxite Mining Affects Livelihoods in Odisha's Koraput Region