The Business Bytes
THEBUSINESSBYTES BUREAU
BHUBANESWAR, MARCH 12, 2025
The ambitious Kansariguda alumina refinery project, once envisioned as a game-changer for industrial development in Odisha, now stands at a crossroads, clouded by uncertainty over its long-term sustainability. As apprehensions over bauxite availability intensify, local communities, industry stakeholders, and intellectuals are raising concerns about the viability of the Rs 8,000-crore project.
Spanning approximately 2,200 acres across Lakshmipur in Koraput district and Kashipur in Rayagada district, the refinery was initially hailed as a beacon of economic growth and employment generation. The local populace, many of whom leased their land to facilitate the plant’s construction, had high hopes for infrastructural development and livelihood opportunities. While construction commenced just two months ago and infrastructure development is progressing at full speed, the facility is not expected to be operational for at least another three years.
However, the project’s most pressing challenge revolves around its raw material — bauxite. The Odisha government had sanctioned the extraction of 3 million tons of bauxite annually from the Kodingamali mines, with a proposal under consideration to increase this to 4.2 million tons per year. Yet, concerns persist that the reserves — originally estimated at 81 million tons — may not sustain operations for long.
To secure a stable supply, the Odisha Mining Corporation (OMC) signed a 15-year (until the mine is exhausted) agreement with the company developing the Kansariguda refinery, promising consistent bauxite deliveries from Kodingamali. However, experts fear that at the current rate of extraction, the bauxite supply could be exhausted much sooner than anticipated, jeopardizing the refinery’s future.
The growing uncertainty has sparked alarm among company executives, local communities, and industry observers alike. If the mining rate remains unchecked, operational challenges could become inevitable, raising doubts about the plant’s long-term feasibility. With local intellectuals voicing concerns and discontent brewing among residents, the possibility of protests looms large should the project fail to deliver on its promises of development and employment.
As stakeholders deliberate the fate of the Kansariguda refinery, the pressing question remains — can the project sustain itself amid dwindling bauxite reserves, or will it become yet another industrial promise that failed to materialize?
