More than 100 civil society organisations and activists appeal to financiers to exercise environmental, social, cultural, and climate-related diligence regarding the Sijimali Bauxite Mining Project.
PRESS RELEASE
July 24, 2026 Delhi
More than 100 civil society organizations, human rights activists, environmentalists, academics, and people’s movements across the country have issued a joint appeal to financial institutions, such as public and private commercial banks, and investors appealing for diligence regarding potential financial exposure – in the form of loans – to the proposed Sijimali bauxite mining project in Odisha.
The signatories include environmental and human rights activist Prafulla Samantara, who led a historic 12-year legal battle that affirmed the indigenous Dongria Kondh’s land rights and protected the Niyamgiri Hills from a massive bauxite mining project. Medha Patkar from Narmada Bachao Andolan, environmentalist and people’s science activist Soumya Datta, from Movement for Advancing Understanding of Sustainability and Mutuality, Sanjay MG, Meera Sanghamitra and Praveer Peter from National Alliance for Peoples’ Movements and Sarath Cheloor from Friends of the Earth India, among many others.
In their appeal, CSOs and activists note that the decisions of financial institutions, which are custodians of public money and savings, have vital consequences for ecology and communities on the ground. Responsible financial decisions, they say, can play a major role in preventing possible adverse impacts on those who are directly impacted by investments in big infrastructure.
The ‘Ma Mati Mali Suraksha Manch’a community forum of Adivasis from Odisha’s Rayagada and Kalahandi districts, has been waging a long-standing, peaceful struggle to protect their ancestral lands from the Sijimali bauxite mining project. Led by local *Gram Sabhas*, people’s organizations, and community-based movements, the people are raising their voices to safeguard their land, forests, water sources, and cultural heritage. Activists allege that during the protests, police forces subjected villagers to coercion and repressive actions including assaults on men and women, as well as arrests based on false charges creating an atmosphere of fear and insecurity within the communities. Civil society organizations have demanded that the state administration respect the right to democratic protest and ensure transparent dialogue with the affected communities.
The proposed Sijimali bauxite mining project is being undertaken by Vedanta Limited and Mythri Infrastructure and Mining India Private Limited. Tribal communities in the Rayagada and Kalahandi districts of Odisha are protesting against the massive mining project in what they consider as the sacred Sijimali hills.
The appeal urges financial institutions to exercise environmental, social, cultural, and climate-related diligence as regards a potential exposure to the Sijimali Bauxite Mining operations and to use their influence constructively. For those institutions which already have exposure to the project or the companies involved, this may include seeking independent verification of compliance with legal safeguards, commissioning robust environmental and human rights due diligence, and engaging transparently with affected communities.
The appeal further enjoins financial institutions to ensure that project-linked activities are carried out only where concerns regarding free, prior and informed consent, environmental protection, statutory obligations and expectations of the affected communities have been satisfactorily addressed.
The appeal states that the Sijimali hill range, located in the Rayagada and Kalahandi districts of Odisha, is not merely a repository of mineral resources but the foundation of life, livelihoods, water sources, biodiversity, and cultural identity for thousands of tribal and forest-dependent communities. For the Dongria Kondh, Paraja, Gond, and other local communities, this region holds immense religious and cultural significance.
The appeal notes that the proposed bauxite mining project could severely impact dense forests, water sources, agricultural land, and the local ecology. The Sijimali hills are the source of numerous streams and rivulets upon which the drinking water supply, agriculture, and animal husbandry of surrounding villages depend. Large-scale mining in such an ecologically sensitive area could exacerbate the impacts of climate change.
Civil society organizations stated that local tribal communities have been peacefully opposing this project for several years. Alongside environmental concerns, the appeal highlights questions that have been raised regarding procedural safeguards intended to govern projects in Scheduled Areas. Community representatives have reported that processes under the Forest Rights Act (FRA), the Panchayats (Extension to Scheduled Areas) Act (PESA), and other legal requirements have not fully reflected the principle of free, prior, and informed consent.
The organizations stated that at a time when banks and investors worldwide are announcing commitments to climate change, biodiversity conservation, and responsible investment, it is their ethical and institutional responsibility to exercise extreme caution before investing in sensitive projects like Sijimali.
This joint appeal emphasizes the environmental, social and climate responsibility of financial institutions. The Sijimali hills cannot be reduced to merely a profitable investment, but rather recognised as the foundation for the lives, culture, nature, and future of thousands of people.
Issued by: Financial Accountability Network India ( FANI)
Contact details: Deepmala – 7972036153
