Kalinganagar's grim anniversary: Progress evident, but unease persists

Once known for controversial land acquisition, the Kalinganagar industrial unit in Odisha now accounts for as much as 20% of approved new investments in the state. But for many locals, unease persists

Affected residents under the banner of the Bisthapan Birodhi Jan Manch will gather again at the site of the firing on January 2 to observe Saheed Diwas

Ramani Ranjan Mohapatra Kalinganagar/New Delhi

9 min read Last Updated : Dec 26 2025 | 8:52 PM IST

Narayan Gagarai was barely 10 years old when his father and 12 other tribal people were killed in police firing on January 2, 2006, while protesting the construction of a boundary wall for a Tata Steel plant in Kalinganagar in Odisha’s Jajpur district. Twenty years down the line, his family lives in a rehabilitation colony about 10 km away and his brother works at Tata Steel. Biswanath (name changed), also a Tata Steel employee, lives in the same colony. He points to a scar on his chest from the 2006 incident. For many like him, memories of the firing remain an unhealed wound. Things could be better, with jobs outsourced and civic issues persisting, but life has moved on.

A rehabilitation colony managed by Tata Steel

As has the Kalinganagar industrial unit, which today accounts for more than 20 per cent of the ₹4.34 trillion worth of investment proposals approved by the Mohan Charan Majhi government over the past one-and-a-half years, much of it related to vast deposits of minerals found in Odisha. The state is home to 98 per cent of India’s chromite (primarily found in Jajpur’s Sukinda valley), 55 per cent of bauxite, and 33 per cent of iron ore deposits — the chromite and iron ore in particular are crucial for steelmaking. Proximity to the Brahmani river, Dhamra and Paradip ports, and easy road and rail links to Kolkata and Chennai make Kalinganagar, about 120 km from the state capital, a major investment destination.

Troubled past

However, with a sizeable tribal population dependent on land and forests, the area had for long resisted industrialisation, and tensions escalated on January 2, 2006, when villagers facing displacement stopped land-levelling work for the boundary wall of a proposed Tata Steel plant, demanding fair compensation and proper rehabilitation. The standoff turned violent, leading to the death of a policeman. The police, in turn, opened fire, killing 13 protestors and injuring many more. The incident sparked nationwide outrage — it was the first major tribal unrest under the then Naveen Patnaik-led coalition government. A judicial commission inquiry report, tabled in the Odisha Assembly in 2017, blamed political leaders and local organisations and stated that “there was no option for the executive magistrate than to pass orders for opening of live firing on the riotous mob”. As protests continued in 2006, the government introduced the Odisha Resettlement & Rehabilitation (R&R) Policy in May that year with provisions for financial assistance, housing, livelihood support and fully equipped resettlement colonies. In line with the national Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Odisha brought in a similar policy in 2016, which mandated social impact studies, transparent land valuation, and enforceable rehabilitation entitlements. According to the government, industrial land for new projects is now largely drawn from the audited land bank of the Odisha Industrial Infrastructure Development Corporation, which centralises land mapping, valuation, acquisition, and allocation. In 2019, the Central government granted approval to Kalinganagar as a National Investment and Manufacturing Zone, spread over an area of 40,339 acres, and earmarked it to be developed as a downstream ancillary industrial park. However, tribal rights activist Prafulla Samantara said little has changed on the ground since the 2006 incident. He cited ongoing protests by tribals over land acquisition in Sundergarh district. “We hope that the CM, being from a tribal community, will work to safeguard the rights of the local people.”

Changing fortunes?

The Tata Steel plant is among the largest industrial units operating in the town. Tata Steel Kalinganagar (TSK), which was dedicated to Odisha by then chief minister Patnaik in 2015, nearly a decade after the police firing incident, has expanded to 8 million tonnes per annum (mtpa) of production capacity from 3 mtpa earlier. It invested cumulatively over ₹50,000 crore in the plant — the largest organic capacity expansion in its history, the company said replying to queries. Majhi inaugurated Phase II expansion in May this year, when he unveiled 24 projects by various companiesacross sectors in the area with a total investment of ₹1.15 trillion. “Kalinganagar tested our resilience, teamwork, and faith, and each time, our people rose to the occasion. Over the past decade, Kalinganagar has demonstrated how growth, technology, and sustainability can work in harmony to build lasting value,” T V Narendran, managing director and chief executive officer of Tata Steel, had said on the completion of a decade of the commissioning on November 18. Odisha Industry Minister Sampad Chandra Swain told Business Standard the government is making Kalinganagar a model for responsible, high-value industrialisation in eastern India. “Kalinganagar is at the heart of our industrial push. In just one year, we have moved from intent to implementation, bringing in large investments in steel, chemicals, and industrial gas while ensuring better rehabilitation, skilling and opportunities for local youth,” Swain said. However, economists and analysts claim that implementation of projects has been slow and many industries in the area are now defunct or closed. Several companies operational in 2006, such as Mesco, Maithan Ispat, Uttam Galva, Neelachal Ispat Nigam, Maharashtra Seamless, and VISA Industries, have either shut down or been merged with or acquired by larger players. In July, Tata Steel acquired Neelachal Ispat Nigam Ltd. In October, Odisha-based India Metals and Ferro Alloys announced it would acquire Tata Steel’s ferro chrome plant in Kalinganagar. Jindal Stainless, another key player in the complex, set aside around ₹1,900 crore for the expansion of its downstream lines in 2024. The company has increased capacity to 3.2 mtpa from 1.1 mtpa earlier, according to state government data. Tata Steel said Odisha’s minerals had fed its Jamshedpur plant for decades, before Kalinganagar changed that dynamic. Odisha has emerged as its largest investment destination, with cumulative investments of over ₹1 trillion in the past decade. Odisha is now India’s largest producer of steel (41.2 mt), stainless steel (2.2 mt) and alumina and aluminium (9.1 mt), according to the Odisha Economic Survey 2024-25. Industry, a key driver of the state’s economy as stated by the Survey, is projected to grow 6.1 per cent in 2024-25 (advance estimates), down from 8.7 per cent in 2023-24 (AE). It contributes 43.9 per cent to the Gross State Value Added (GSVA). Manufacturing is the largest contributor, accounting for 52.6 per cent of industry GVA and 23.1 per cent of total GSVA, and is expected to grow at an average 11 per cent annually between 2020-21 and 2024-25 (AE), compared with 5.2 per cent nationally. The workforce is steadily moving out of agriculture into industry and services. In 2024-25 (AE), industry accounted for 26 per cent of workforce distribution, up from 23 per cent in 2011-12.

Jobs, environmental concerns

Policy analysts, however, said headline numbers do not tell the full story. “The key questions are how many jobs are being created, how much value is being added to the state GDP, and how employment is split between organised and unorganised sectors,” said economist Santosh Kumar Mohapatra. “It’s a fact that outsourcing is rampant and locals getting jobs is a myth,” said Prasanna Mishra, a former bureaucrat and columnist. Both echoed the concerns raised by the local residents, who allege that while outsiders secure permanent jobs, many displaced families are pushed into contract work despite having the required qualifications. According to the state government, investment proposals approved so far across Odisha would generate 281,930 jobs, of which Kalinganagar will account for 24,726, or just 8.7 per cent. It has not given a timeline for its projection. Prafulla Ghadei, the local legislator at the time of the 2016 incident and a former state minister, called for an urgent overhaul of the state’s R&R and industrial policies to prioritise local communities. “There must be stricter rules to secure jobs for locals and ensure they are part of the policymaking (process).” Birakishore Jank, a displaced resident, said the administration, which was once prompt in responding to their concerns, is now taking time to resolve even minor civic issues. Besides, locals complained of rising pollution in the area which they put down to “unregulated industrial use of water”. In 2023, the Odisha High Court instructed the district administration to probe reports of increased incidence of kidney-related ailments in the industrial zone, which petitioners had linked to groundwater depredation and pollution. Tata Steel, on the other hand, claimed TSK was committed to a long-term objective of sustainable development and that it had touched 1.4 million lives in the past 10 years through various initiatives. The company added that it was restoring groundwater via India’s first mega watershed project and creating livelihoods through its Navjeevan Cooperative Ltd. Affected residents under the banner of the Bisthapan Birodhi Jan Manch (BBJM), an anti-rehabilitation group, will gather again at the site of the firing on January 2 to observe Saheed Diwas (Martyrs’ Day), which the organiser said would also serve as a reminder to the government of the demands that remain unresolved. “Apart from environmental challenges, we continue to seek re-enumeration of rehabilitated families, withdrawal of cases linked to the 2006 protest, and generation-to-generation job security for affected families,” said BBJM leader Rabindra Jarika.