Mining-affected villagers of Hemgir block in Odisha's Sundargarh district revived their protest in July against a delay in rehabilitation and resettlement claims for land acquired for Mahanadi Coalfields Ltd (MCL), a subsidiary of Coal India Ltd, in 1988. They also protested against inconvenience caused by the movement of heavy vehicles used for transporting coal.

On July 2, 2023, residents of 14 villages in Sundargarh's Hemgir block allegedly affected by the MCL took to the streets demanding settlement of rehabilitation and resettlement (R&R) claims. Some of the villagers said that their land was acquired for MCL 34 years ago, but they are yet to receive the compensation and benefits promised under the Rehabilitation and Resettlement Act, 2013.

During the protest, which continued for at least 19 days, protesters said that no steps were being taken to provide a Record of Rights (RoR) to the families residing in the rehabilitation colonies. They also said that people who were assured jobs were not granted any employment. 

The agitators further alleged that the MCL authorities were not adhering to the existing rules and guidelines for settling the R&R claims. They added that the Supreme Court, in its November 3, 2022 order, had directed the MCL authorities to settle the R&R claims of displaced people of 14 villages within nine months. However, the villagers are still waiting for their claims to be settled. 

Vinayak Jamwal, Public Relations Officer, MCL told LCW, "We have been following the state government's rehabilitation and resettlement policy. Further decisions on the rehabilitation and resettlement will be taken in compliance with the Supreme Court's order and as decided by the claims commission. He added, "The claims that have come to us are being assessed and all the valid claims will be cleared and paid as per the R&R policy."

The following 14 villages were affected due to the MCL project: Sardega, Jhupurunga, Ratansara, Tikilipara, Siarmal, Tumulia, Karlikachhar, Kulda, Bankibahal, Balinga, Garjanbahal, Bangurkela, Kiripsira and Lalma R.F. 

The legal battle in the case began in 2006 with the Orissa High Court directing the Centre and MCL to determine and disburse compensation payable to landowners under the Coal Bearing Areas (Acquisition and Development) Act of 1957. MCL had then challenged the order on a special leave petition, a discretionary power vested in the Supreme Court. Following which, the then Solicitor-General of India, Gopal Subramaniam, had proposed a scheme for the determination of compensation to the landowners, which the Court accepted in its judgment of Mahanadi Coalfields Ltd, 2010.

A three-member Claims Commission was established to assess the rate of compensation or profits owed to landholders under the settlement and rehabilitation package. Noting that no compensation had been provided till date despite the acquisition notifications being made in 1984, the commission recommended that the date of the commission's survey notice in September 2010 should be used to determine the market value of the acquired lands.

In October 2013, the Supreme Court ordered that infrastructure for resettlement was to be in terms of Odisha Resettlement and Rehabilitation Policy, 2006 and the Third Schedule to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2013. In 2017, the SC disposed of the MCL appeal, directing the disbursement of compensation and other benefits based on the reports prepared by the Claims Commission, according to legal news website Live Law. 

In 2020, the SC directed MCL to share all the status reports and relevant documents available with it digitally with all parties. A chart furnished by the district collector, Sundargarh, indicated that the competent authority had issued no certificate of completion at six sites in different villages, the Court observed in the same order.

In November 2022, the apex court appointed a Claims Commission and directed MCL to determine and disburse the compensation within nine months. It further directed the state and MCL to develop housing plots within 15 months.

If an individual landowner declined a plot, the displaced family was entitled to a one-time cash settlement of Rs 25 lakh. In cases where plots could not be provided within two years or were unavailable, displaced families were entitled to a one-time compensation of Rs 25 lakh with a 7 percent annual interest rate for two years.

MCL was directed to offer employment to two members of the displaced families, along with additional monetary and tangible benefits. In case any family does not wish to opt for employment, a one-time compensation of Rs 16 lakh was be paid by MCL to the concerned family.

Jamwal told LCW that MCL has requested further clarification from the court citing room for interpretation.

The protest affected a daily dispatch of 45,000 tonnes coal from MCL to power plants, according to a PTI report quoting sources. MCL contributed 193 million tonne (MT) to CIL’s 703 MT coal production in FY23. However, there was no official statement by the company regarding the delay in coal dispatch. 

Meanwhile, the agitators have demanded that MCL should refrain from launching new mines or expanding existing mines and issue displacement certificates to all affected persons of 14 villages, certify finalisation of R&R site, and provide 10 dismal land with records to each family for construction of houses. 

Abhimanyu Behera (in charge R&R Hemgir MCL project), ADM Sundargarh, said, "At present, compensation package for two villages is being processed, while the others are still waiting to hear from MCL and the state."