But conservationists claim the plans have been dropped to ease the way for big steel investors like Vedanta Resources Plc, JSW Steel and Arcelor Mittal to mine for iron ore, manganese and bauxite.

"Multi-nationals can now carry out mining easily and get all the environmental clearance without any impact study on wildlife at all," said Biswajit Mohanty of the Wildlife Society of Orissa.

Government officials denied the charge.

"The area for the two proposed elephant reserves was too big and that was why we withdrew the proposals," said P.N. Padhi, a senior official in Orissa's forest and environment department.

"The presence of mines in these areas is only a coincidence as we are quite serious about wildlife conservation."

The two reserves -- one in the northern area of Baitarani and the other in the south, including the Niyamgiri hills area -- would have covered a total area of nearly 15,000 sq km (5,800 sq miles).

Conservationists said the reserves would have given extra protection to the large mammals who are increasingly losing their habitat due to deforestation and increasing industrial development, bring them into more conflict with humans.

Home to 50,000 elephants a century ago, India now has just a little over 21,000.

Experts say only 20 percent of India's landmass is forested and just 120,000 sq km (46,340 sq miles) -- less than four percent of the country -- of these forests are suitable elephant habitats.