Vedanta Ltd's operations in the Jarsuguda district have come under regulatory scrutiny from the Odisha government due to water usage concerns. The government is demanding a detailed report on the company's water abstraction sources and its consumption history since the construction of the aluminum plant.
The Department of Water Resources has directed the Burla Irrigation Department to provide a report regarding Vedanta Aluminium Ltd concerning their water sources and the procedure for collecting water charges.
The department's Chief Engineer, Bijay Kumar Sethi, instructed the Senior Engineer (SE) of the Burla division to clarify the source and total volume of water extracted during the plant's construction period, as well as to provide a copy of the consumption notification issued for that period.
In a letter dated August 21, the SE of the Burla division was asked: 'Specify the exact period when M/s Vedanta Aluminium Ltd laid the pipeline from the Hirakud reservoir after allocation, and provide an approved copy of the water abstraction scheme, in addition to copies of all agreements and temporary agreements concluded since the beginning of the industry's operation.' The business standard reviewed this letter.
The department also requested information on all water abstraction sources other than water allocated from the Hirakud reservoir, as well as copies of permits from the Odisha State Pollution Control Board regarding wastewater disposal.
These directives were issued following a complaint by Satyanarayan Rao, president of Anchalik Paribesh Surakhya Sangh, Jarsuguda. He alleged that Vedanta was extracting groundwater through borewells for industrial purposes without obtaining mandatory permits, violating environmental laws, CGWA rules, and directives from the Odisha Water Resources Department.
According to the complaint, Vedanta operated numerous borewells without the necessary permits for groundwater use, abstraction agreements, or digital flow meters. Rao stated that 'Vedanta relied entirely on groundwater during the construction and commissioning of its plant in Jarsuguda between 2005 and 2013, as the pipeline from the Hirakud reservoir only started operating in 2013.'
Based on this complaint, the Central Ground Water Board (CGWB) requested the Odisha government to form a joint committee to investigate allegations of unauthorized groundwater extraction.
Three months ago, the Odisha government issued a demand notice to Vedanta for ₹233.11 crore for alleged unauthorized water withdrawal from the Behedan river system. This amount included water charges, interest, and a sixfold penalty for unauthorized withdrawal, which Vedanta disputed, calling the allegations incorrect.
Last month, the National Green Tribunal (NGT) also sought responses from the state government, the Central Pollution Control Board, and Vedanta Ltd regarding illegal river water abstraction and the discharge of untreated industrial effluents into the river.
An email sent to Vedanta requesting comments remained unanswered at the time of publication.