The Adani group’s purchase of land near the bauxite-rich Gandhamardan hills in Balangir and Bargarh districts of western Odisha has triggered a controversy with local tribals, activists and the Opposition suspecting the company may be planning a mining operation.

Adani group subsidiary Mahanadi Mines and Minerals Pvt Ltd has purchased land in and around the hills in phases over the past year and the company is in the process of acquiring more land in Balangir and Bargarh. Company officials have said the land was purchased for a compensatory afforestation programme.

Around 55,000 tribal people are dependent on the Gandhamardan hills for their livelihood, which includes collection of medicinal plants, firewood, sal and mahua.

The Opposition feels it’s a tacit attempt by the Adani group to enter the Gandhamardan hills for the exploration of bauxite. The Opposition BJD has demanded a clarification from the new BJP government helmed by Mohan Charan Majhi whether it will allow the exploration of bauxite and other minerals like manganese and graphite in the larger area.

The Adani group said the purchase of land was not for commercial purposes. “This land acquisition is not intended for any commercial purposes and will enrich the local ecology on account of compensatory afforestation.”

Mahanadi Mines and Minerals said in a media release: “In 2022, the Ministry of Coal, Government of India, vested the Bijahan Coal Mine with Mahanadi Mines and Minerals through competitive bidding for commercial mining purposes in Sundargarh district, Odisha. Mahanadi Mines and Minerals has acquired private land in the Balangir and Bargarh districts from willing landowners to transfer it to the Forest Department of the Odisha Government for afforestation purposes.”