Banks Urged to Review Vedanta-Mythri Bauxite Project Amid Community Resistance in Odisha

Civil society organizations have called on more than 30 banks, including major lenders like State Bank of India and ICICI Bank, to conduct rigorous environmental and social due diligence before financing the Sijimali bauxite mining project in Odisha. The project, developed by Vedanta Limited and Mythri Infrastructure, is under scrutiny for its impact on local communities and ecosystems, covering approximately 1,549 hectares of land critical for grazing and resources.

The appeal emphasizes potential violations of legal protections for Scheduled Areas and claims of inadequate community consultation. It cites ongoing tensions, including protests and legal disputes, which could pose risks to financial institutions regarding reputational damage and project delays. The letter urges banks to verify legal compliance and engage with affected communities before proceeding with financing.