Bhubaneswar: Thousands of forest-dependent families across Odisha are finding new sources of income and hope through a community-led forestry initiative that is combining livelihood generation with sustainable forest management, claimed officials Sunday.
What began as small financial assistance for struggling forest-dependent families has evolved into a large-scale rural transformation across the state.
From helping widows become successful entrepreneurs to enabling farmers to diversify their income through sustainable livelihood activities, the Odisha Forestry Sector Development Project (Phase-II) (OFSDP-II) is steadily improving the lives of thousands while strengthening community-led forest conservation.
One such beneficiary is Sairendri Sidar of Devdhara village under Jharsuguda Forest Division.
After losing her husband, she struggled to support her family through daily wage labour.
Her fortunes changed after receiving a loan of Rs 15,000 from her local Vana Surakhya Samiti (VSS), which enabled her to take up pointed gourd cultivation. “The loan changed my life.
It gave me a stable income and the confidence to move forward,” Sairendri said. Hundreds of kilometres away in the Ganjam district, Upendra Nayak of Gundibira VSS under South Ghumusar Forest Division has scripted a similar success story.
Supported under the project, he ventured into oyster mushroom cultivation, producing 110 kg of mushrooms from 80 beds during the last winter season and earning Rs 16,500, significantly improving his household income.
The two stories reflect the growing impact of OFSDP-II, a flagship initiative aimed at enhancing livelihood se curity while promoting sus tainable forest management across the state.
Implemented by the Odisha Forestry Sector Development Society (OFSDS) under the Department of Forest, Environment and Climate Change with financial assistance from the Japan International Cooperation Agency (JICA), the project covers 14 forest and wildlife divisions in 10 districts.
Working through more than 1,210 VSS, it has benefited over 6.37 lakh people belonging to 1.47 lakh forest-dependent families. The project has expanded rapidly by converging with various government programmes.
It reached 3.41 lakh beneficiaries in 2024-25 and another 4.14 lakh in 2025-26, taking its cumulative outreach to nearly 7.55 lakh people over the past two years.
Livelihood interventions span agriculture, forestry, livestock, fisheries, mushroom cultivation and millet processing.
To promote value addition and market linkages, the project has established six Multi-Product Clusters (MPCs) across the state.
These include sal leaf processing units at Karanjia, Rairangpur and Baripada, a cashew processing cluster in Dhenkanal, a lemon grass cluster in Jharsuguda, and a pulse processing cluster in Boudh.
Together, they have generated direct employment for 2,526 VSS members. Three more clusters are ready for inauguration, while five additional MPCs are planned under the OFSDS–OMBADC partnership.
Access to affordable finance has emerged as another key pillar of the programme. By March 2026, VSS-managed revolving funds had disbursed loans worth Rs31.39 crore, of which Rs 22.83 crore has already been repaid.
The initiative has supported 47,746 beneficiaries, including 38,147 women, helping many launch or expand income-generating activities and emerge as entrepreneurs.
Besides improving livelihoods, OFSDP-II is reinforcing community-led forest management, biodiversity conservation and ecological restoration, demonstrating that sustainable use of forest resources can drive inclusive economic development across Odisha.
