The change of guard in the Orissa Congress has cast a shadow on the future of at least two projects -- Utkal Alumina and Aditya Aluminium. Both are scheduled to come up in the undivided Koraput district, the hometown of the new Chief Minister, Giridhar Gamang.

Last December, former Chief Minister JB Patnaik blacklisted four non-government organisations for instigating local people against the setting up of the projects on their land. Immediately after assuming office, Gamang announced that no project would be thrust upon the people against their will. This will encourage the local people to resist the project with renewed vigour, the project managers said.

Utkal Alumina proposes to set up a one million tonne refinery at Rayagada in undivided Koraput district at an investment of Rs 4000 crore, has already paid Rs 120 crorefor acquiring the land. Although it has received the land records, opposition by the villagers has prevented the company from taking physical possession. Aditya Aluminium, which proposes to set up a Rs 10,000 crore integrated aluminium manufacturing facility, is also facing resistance from the local people of Kansariguda in Koraput district. The project requires 3000ha of land for the mine and refinery.

The promoters, who expect the political instability to continue this year, are planning to withhold the investments. "We have almost decided to wait till the new Government takes over after the state elections which are due in February 2000," a senior official of Aditya Aluminium told The Financial Express.

The Aditya Birla group company has decided not to pay the Rs 40 crore land cost to the state government till it gets physical possession of the land. Aditya Aluminium president SK Tomatia is said to have met Gamang and explained the situation. He has been asked to submit a report on the proposeddisplacement and rehabilitation package. According to a company official, the project will displace only about 36 families and the rehabilitation package, which would provide each displaced person with Rs 1,000 per month till he gets employment, is better than that offered by other projects coming up in Orissa.

Larsen & Toubro's Rs 4000 crore alumina project in Kalahandi district has been nearly shelved. The Orissa Government refused to renew the mining licence after extending it for 18 months in 1997. Continental Resources Ltd of Canada, which proposes to set up an alumina plant based on the bauxite deposits of Gandhamardan hills of Bolangir district, is unable to proceed with the venture due to stiff opposition from the local people.

The Mumbai-based Sterlite group is planning an integrated aluminium complex with its refinery in Kalahandi district and smelter and power plant in the Ib Valley of Jharsuguda district. At present, Sterlite is concentrating on the smelter and power plant. The fate of thealumina project will be known after the promoters take a decision on the mining and refinery plants.