Mining and livelihood: a microanalysis in Odisha, India

Purpose - The purpose of this paper is to study the impact of mining on the livelihood of the inhabitants of Keonjhar district in Odisha, through creation of physical and financial capital using the sustainable livelihoods framework. Design/methodology/approach - Principal component analysis technique and discriminant analysis were used to assess the impact of mining on the financial capital. A cross-tabulation analysis withχ2-test has also been carried out to find its impact on physical capital. Findings - The study reveals that though iron ore mining helps in the augmentation of financial capital of the households, its impact on physical capital is mixed. Households in mining villages enjoy higher average annual and per capita income than those in nonmining villages. There is also a significant difference in the financial capital index of mining and nonmining villages. Even owning of physical assets like TV and motorcycle is significantly higher in mining villages than its nonmining counterparts. But mining has failed to develop the infrastructural facilities and has rendered most of the agricultural land uncultivated. Originality/value - It is difficult to sustain the benefits arising out of mining over long run due to its finite life span and calls for policy interventions that can lead to sustainable livelihood to the local inhabitants.