Villagers in Odisha seek restoration of land as thermal power plant fails to take off

Villagers in Odisha’s Dhenkanal district have demanded the return of land acquired for a power project that failed to take off after the promoter company went bankrupt, shattering their hopes of jobs and sustainable livelihoods.

Nearly 1,000 acres of land in Khadagprasad and Khurunti villages under Odapada block were acquired around 2008 for a proposed 1,320 MW supercritical coal-based thermal power plant by Hyderabad-based Lanco Group.

“In anticipation of employment, villagers parted with their land for a meagre compensation of ₹3 lakh to ₹6 lakh per acre. The company had even begun construction. We were hopeful of regular jobs, and some villagers started earning by supplying essential commodities to the project. But the plant never became operational, and we were left in the lurch,” alleged Binod Kumar Sahoo, a resident of Khadagprasad.

Another villager, Abinash Samal, pointed out that land acquisition laws provide for the return of land to owners if an industrial project is not materialised within five years. “Villagers lost their land but received nothing in return,” he said.

Villagers have repeatedly approached the Dhenkanal district collector seeking restoration of the land, but their issues remained unresolved, they alleged.

Lalitendu Mishra, counsel representing the villagers before the Orissa High Court, said Lanco Group had moved the National Company Law Tribunal (NCLT) for liquidation. “The transfer of land was approved at a paltry ₹10 lakh per acre. The Odisha Industrial Infrastructure Development Corporation (IDCO), which had acquired the land, and the villagers should have been taken into confidence. That did not happen,” he alleged.

Mr. Mishra further claimed that a third company subsequently took over the 1,000-acre land parcel for about ₹100 crore. “Where else in the world is industrial land available at such a low cost? Villagers feel cheated by the entire process,” he said.

Mr. Sahoo said there was now a proposal to set up a steel plant on the same patch of land, which villagers oppose citing environmental pollution. “It would be better to restore the land to the original owners. The government must also ensure that pending dues of villagers who supplied materials to Lanco Group are cleared,” he demanded.