A Just Transition Vision for Odisha: Balancing Growth, Power, and Ecology

Odisha today stands at a crossroads of industrial ambition and environmental prudence. With its vast reserves of coal, bauxite, and water resources, the state has long been central to India’s energy and metallurgical map. Yet, its industrial geography reveals an imbalance that urgently needs correction if development is to be both equitable and sustainable. The new greenfield aluminium project proposed in Dhenkanal provides an opportunity to rethink where and how heavy industries take root and how Odisha can chart a “just transition” for its people and environment.

The Concentration of Power and Industry

The distribution of coal-based power in eastern India tells a revealing story. The Singrauli–Sonebhadra belt in Madhya Pradesh and Uttar Pradesh leads with an installed capacity exceeding 10,000 MW. The Angul–Dhenkanal region of Odisha follows with 7,260 MW, while Korba in Chhattisgarh hosts around 6,400 MW. If Vedanta’s proposed 4,900 MW captive power plant comes up at Kamakhyanagar in Dhenkanal, the Angul–Dhenkanal region will surpass Singrauli to become India’s largest coal-based power hub, with a combined capacity of over 12,000 MW.

That scale of concentration is both an industrial achievement and an ecological warning. The Angul–Talcher–Dhenkanal belt already bears the cumulative burden of multiple power plants, steel mills, and smelters. Air quality has deteriorated, groundwater is under pressure, and the once-verdant landscape shows signs of fatigue. This region, vital to India’s industrial supply chain, is nearing a saturation point.

The New Aluminium Project: Promise and Peril

Odisha’s pride in attracting an aluminium project worth ₹1.27 lakh crore is understandable. Such investment promises jobs, ancillary industries, and fiscal buoyancy. But scale must not blind us to sustainability. Mega investments can strengthen the state’s industrial foundation, but they can also deepen spatial inequality if confined to already burdened zones.

The principle of just transition demands that economic gains be distributed more evenly, that environmental stress be mitigated, and that new development corridors open up where nature can still absorb the footprint of industry. Odisha has the unique advantage of being both mineral-rich and geographically diverse. It can therefore plan its industrial future more intelligently than simply piling project upon project in the same region.

Also Read: Can High Growth Alone Make India a Developed Nation?

Coal, Bauxite, and the Logic of Location

For decades, coal from Talcher and Ib Valley has travelled hundreds of kilometres to power stations in Tamil Nadu and other states. The logistical efficiency and economic logic of such long-distance transport can now be reimagined. If coal can journey across states, it can surely travel within Odisha — to the Koraput–Rayagada region, where abundant bauxite deposits await value addition closer to their source.

The Koraput–Rayagada-Kalahandi belt already hosts some alumina refineries, but it lacks a strong power base. By bringing Talcher coal to this region, Odisha could support new captive power plants, alumina refineries, and smelters integrated into a single ecosystem. Such a reconfiguration would reduce the burden on Angul and Jharsuguda, while diversifying the state’s industrial geography.

Infrastructure and Connectivity: The Rail Link Imperative

A plan of this nature would also be transformative for Odisha’s internal connectivity. A new Boinda–Boudh–Phulbani–Muniguda rail corridor could become the spine of a new industrial and logistics network. It would not merely move coal; it would move opportunity — opening interior districts to trade, transport, and employment. These districts have so far remained outside the industrial map of the state, despite their potential and human resource base.

New rail lines, transmission corridors, and logistics hubs could bring these serene but economically underserved regions into the mainstream. A just transition in Odisha thus becomes not only an environmental strategy but a regional equity policy — connecting prosperity with geography.

Balancing Ecology and Growth

Odisha’s industrial leadership should not come at the cost of its ecological balance. The serene forests, rivers, and tribal landscapes of southern Odisha are not mere backdrops to industry; they are repositories of biodiversity and cultural heritage. The challenge, therefore, is to build a model that respects ecological thresholds while enabling inclusive growth.

A decentralised industrial strategy would distribute pollution loads, diversify employment bases, and reduce vulnerability to localised environmental crises. The future should not replicate the past mistakes of clustering and overexploitation. Rather, it should reflect a transition that is economically efficient, socially just, and ecologically responsible.

A Win–Win Vision for Odisha

If Odisha can realign its industrial map around the principles of just transition, it will achieve more than growth — it will achieve balance. Coal from Talcher powering industries in Koraput and Rayagada would symbolise both resource efficiency and regional integration. The creation of new rail lines and power infrastructure would expand economic geography without overstressing fragile ecosystems.

The Angul–Talcher belt would breathe easier; the Koraput–Rayagada belt would rise faster. The result: a more resilient, equitable, and sustainable Odisha.

In essence, just transition is not about halting industrialisation, it is about redistributing its footprint wisely. Odisha, blessed with resources and foresight, can pioneer this model. Its challenge and opportunity lie in ensuring that the greenfield projects of today do not sow the seeds of tomorrow’s ecological distress, but rather become the cornerstones of a just and balanced development story.