Odisha | January 29, 2026: Ahead of the Union Budget 2026–27, PRAHAR – Public Response Against Helplessness and Action for Redressal, a national non-governmental organisation working across India on issues of livelihoods, employment generation, and economic inclusion, has written to the Ministry of Finance acknowledging the additional ₹9,176 crore allocated for Odisha last year, but warning that this funding has not delivered even development across the state. While the eastern districts have gained, the south-western region, spanning districts such as Kalahandi and Rayagada, continues to witness a development deficit, with lack sustainable jobs and distress migration.
PRAHAR has urged the government to retain this level of funding with a strategic shift to accelerate industrialisation and manufacturing capacities in the neglected south-western districts. If this is delayed, as an immediate measure, the government should allocate an urgent bailout package of ₹1,200 crore to prevent employment distress in these regions. However, for long term, sustained development and job creation, the Govt. has to push for industrialization so that the development funds can be generated in a self-sustaining way by way of sharing of the profits with the communities.
Explaining this, Mr. Abhay Raj Mishra, President and National Convenor, PRAHAR, said, “We acknowledge the efforts of the Government of Odisha in making significant social investments for tribal welfare and inclusive development. However, widening disparities persist, particularly in the south and western regions, with districts like Kalahandi and Rayagada having faced decades of neglect that developmental funding alone cannot reverse. Sustained progress will come only when development spending is blended with industrialisation and manufacturing growth—especially in a mineral-rich state like Odisha—to create formal sector employment.”
“While coastal and eastern districts have benefited from large industrial investments, downstream ecosystems and captive mining, similar opportunities have not materialised in the south-western belt despite abundant mineral reserves. Special industrial vehicles, responsible utilisation of mineral resources, and the development of feeder and downstream industries can correct these imbalances and enable even development across South and West Odisha, in line with the vision of a truly Viksit Odisha.”
This recommendation is based on grassroots work and consultations carried out in the south-western regions of Odisha—the Kalahandi district, covering Thuamul Rampur, Golamunda, Madanpur Rampur, Karlamunda, Lanjigarh, Jaipatna and Bhawanipatna, and Rayagada district, covering Kashipur, Kalyansinghpur, Bissam Cuttack, Muniguda and Gunupur. This has which revealed that while last year’s additional allocation of ₹9,176 crore has contributed to visible improvements in physical infrastructure and welfare outcomes, there remains a significant gap in the creation of sustainable, permanent formal sector jobs for locals. The region has also been unable to maximise the full potential of major investments, including one of the world’s largest alumina refineries, due to road-blocks in unlocking value across the captive supply chain.
Structural differences within the state are reflected in employment outcomes. East Odisha offers growing manufacturing opportunities, with over 50,000 potential jobs from steel and allied projects, helping curb migration. South-West Odisha continues to face high distress migration, heavy agrarian dependence of nearly 70% of the workforce, and very low formal employment exemplified by Kalahandi’s per capita income of around ₹32,000, compared to the state average of ₹1.8 lakh.
PRAHAR highlighted that Odisha is uniquely positioned to benefit from the sharp rise in global aluminium demand driven by electric vehicles, renewable energy infrastructure, aerospace, defence manufacturing, power transmission, and lightweight construction materials. With rich reserves of bauxite, the mineral needed to manufacture aluminium, south-western regions such as Kalahandi and Rayagada can see fast-tracked development. Unlocking industrial and manufacturing potential around aluminium production in these regions would not only create jobs but also reduce long-term dependence on welfare transfers, enhance state revenues, attract private investment and CSR flows, and restore dignity through stable employment
PRAHAR’s 6-point advisory for the Government ahead of the Union Budget is as follows:
Welfare Support Must Sustain —but Be Job-Focused:
There is a strong demand to sustain and strengthen welfare and social sector allocations, while ensuring that these funds are explicitly linked to employment creation, skill absorption and local enterprise development—not limited to consumption support alone.
Special Industrial Vehicles for Backward Regions – Fast-track Industrialisation & Manufacturing in the interior regions:
- People are asking for a mission-mode industrialisation programme for regions like Kalahandi and Rayagada, rather than fragmented schemes. There is demand to kick-start manufacturing and MSME-led industrial activity that penetrates deep into underdeveloped blocks, rather than remaining confined to a few industrial pockets. If this is delayed any further, PRAHAR has urged the Union Budget to prioritise earmarking at least ₹1,200 crore in the 2026 budget cycle to achieve similar developmental goals for these backward regions.
Responsible Utilisation of Mineral Resources:
Odisha is rich in bauxite, coal and iron ore, yet this mineral wealth has not translated into widespread local prosperity. There is a clear demand for a comprehensive policy on sustainable mining, and opening up of bauxite mines in South-Western region in a way where minerals are responsibly utilised to generate employment while safeguarding forests, water resources and community rights. Precision and selective mining practices—using advanced tools such as sensors, data analytics and targeted extraction—can enable economic activity with minimal ecological disturbance.
Feeder & Fabrication Industries Around Existing Capacities:
There is an urgent need for the government to act decisively and open bauxite-rich regions for responsible mining and downstream manufacturing. Accelerating the aluminium value chain is not merely an industrial choice—it is a development imperative to create jobs, revive long-neglected regions, and ensure Odisha becomes a future-ready state rather than a spectator to its own mineral wealth. Communities repeatedly highlighted the presence of large industrial assets as islands of development and expressed need for developing feeder and downstream industries around them. Such linkages can create a virtuous cycle of jobs, MSMEs and local services.
- Women’s Economic Participation – Minimum 25% Increase:
Women’s groups are seeking a transition beyond self-help activities towards formal industrial employment, women-led enterprises, food processing units and manufacturing-linked opportunities, supported by access to credit, safety infrastructure and assured market linkages.
- Education Linked to Jobs – Minimum 25% Increase for Skill Development:
There is strong demand for vocational and technical education that directly leads to jobs in factories, workshops, logistics, mining services and manufacturing units. Priority areas include strengthening ITIs and polytechnics, industry-linked curricula, and apprenticeship programmes tied to local plants.
PRAHAR reiterated that the advisory reflects the aggregated voice of communities, youth groups, women’s collectives and local leaders from Kalahandi and neighbouring districts, and urged the Union Government to use the upcoming Budget as an opportunity to bridge long-standing regional disparities within Odisha.
