NLCIL faces questions over community development

Jharsuguda: A decade after NLC India Limited (NLCIL) brought its “Wealth for Well-being” promise to Odisha, the project-affected communities in Jharsuguda and Sambalpur still question whether industrial development has delivered meaningful welfare.

The issue dates back to the Supreme Court’s 2014 judgment cancelling 204 coal block allocations, which left thousands of mining jobs uncertain. In early 2016, the public sector undertaking NLCIL was allotted the Talabira II & III blocks. It earmarked 5 million tonnes of this coal for its Tuticorin plant and 15 million tonnes for a proposed pit-head project in Jharsuguda.

The company’s arrival was welcomed with optimism, as residents expected the mining operations to deliver jobs, industrial growth, and long-term investments in essential community infrastructure like water, roads, healthcare, and sanitation. Mining operations began on December 11, 2019, and commercial coal production started on April 26, 2020. The NLCIL received permission to sell coal in the open market, even though its planned thermal power plant in Jharsuguda is not yet running.

Local stakeholders report that coal auctions from the Talabira II & III Open Cast Project have generated nearly Rs 2,000 crore in profits, raising hopes for tangible development in nearby affected villages. Residents allege that basic developmental needs remain largely unaddressed. Despite repeated demands for permanent potable water facilities, several villages still rely on water tankers filled from nearby canals. Furthermore, progress remains slow in critical areas such as road infrastructure, healthcare, sanitation, livelihood promotion, and essential public services.

Concerns are mounting over the execution of Corporate Social Responsibility (CSR) initiatives. Local stakeholders argue that a lack of regional planning and coordination has hindered the effective utilisation of CSR funds. They specifically highlight administrative overlaps between the Talabira mining project and the under-construction thermal power project. According to these stakeholders, development proposals are frequently shunted between the two projects under CSR and Corporate Environmental Responsibility (CER) provisions, creating bureaucratic delays that stall vital community works.

Local residents report growing public dissatisfaction, feeling that social and developmental benefits lag behind massive mining operations and revenues. To address this, community leaders, representatives, and district administrations state that NLC India Limited must appoint a CSR officer with local knowledge and community development expertise.

Assigning a single officer to coordinate community development for the Talabira mining and Jharsuguda Thermal Power Project will streamline planning, optimise CSR resource use, and foster long-term goodwill with affected communities.