The State Government of Orissa defended proposed mining at Niyamgiri Bills in Kalahandi district of Orissa that not a single tribal family would be displaced due to this mining project.

Mr Raghunath Mohanty minister of steel and mines government of Orissa stated this to the BJP MLA Mr Hitesh Bagarti in the entire House. He told the House that there is a proposal to give permission to the State owned Orissa Mining Corporation for mining activities at Niyamgiri hills.

The Minister said that "No Dongria Kondha tribe live at the proposed mining area of Lanjigarh located between Rayagada and Kalahandi districts."

The mining project at Niyamgiri is aimed at supplying bauxite to the alumina refinery of Vedanta Aluminium Limited at Lanjigarh, District Kalahandi, Orissa. Adding further, the Minister said, due steps are being taken for the welfare of the Dongria and Kutia tribes living on periphery of the Niyamgiri Hills. For this purpose, the government has constituted a Special Purpose Vehicle in the name of Lanjigarh Project Area Development Foundation with contribution of State Government as 25%, Orissa Mining Corporation as 26% and Sterlite Industries Ltd as 49%, as directed by the Supreme Court. The Revenue Divisional Commissioner Southern Division is the Chairman of the Special Purpose Vehicle which on its first meeting itself decided to take up development projects worth INR 17.70 crore in the areas of health, education, road, infrastructure development that are required for the upliftment of Dongria and Kutia Kondha tribes.