Vedanta's aluminium plant in Jharsuguda, Odisha, is facing intense regulatory scrutiny and allegations of unauthorised groundwater extraction, prompting a detailed investigation by state and central authorities into its water usage history.
Key Points
- Vedanta's Jharsuguda operations are under regulatory scrutiny for water usage by the Odisha government.
- The water resources department has demanded detailed reports on Vedanta's water sources and drawal history.
- A complaint alleges unauthorised groundwater extraction by Vedanta without mandatory approvals, violating environmental laws.
- The Central Ground Water Board has requested a joint committee to investigate the allegations of illegal water use.
- Vedanta previously received a demand notice of approximately Rs 233.11 crore for alleged unauthorised water extraction from the Bheden river system.
Vedanta Ltd’s Odisha operations in Jharsuguda district have come under regulatory scrutiny over the use of water, with the Odisha government seeking a detailed account of the company’s water sources and drawal history dating back to the construction of its aluminium plant.
The water resources department has directed the Burla irrigation division to submit a report pertaining to Vedanta Aluminium Ltd regarding the source of water it has been using and the rates at which water charges are collected.
Chief engineer of the department, Bijay Kumar Sethy, has asked the superintending engineer (SE) of Burla division to specify the source and total quantity of water drawn during the construction period of the plant, along with a copy of the demand notice raised for the period.
Odisha Government Seeks Detailed Water Usage Report
“Specify the exact period when M/s Vedanta Aluminium Ltd laid the pipeline from Hirakud reservoir after allocation and submit an approved copy of the scheme of drawal, apart from the copies of all agreements and temporary agreements executed since the inception of the industry," read the August 21 letter to the Burla division SE.
Business Standard has reviewed the letter.
The department has also sought details of all sources of water drawal, excluding the water allocated from the Hirakud reservoir, and copies of the Odisha State Pollution Control Board’s consent orders related to sewage disposal.
The direction came following a complaint by Satyanarayan Rao, president of Anchalik Paribesh Surakhya Sangh, Jharsuguda, alleging that Vedanta extracted groundwater through borewells for industrial use without mandatory approvals, violating environmental laws, CGWA regulations and directives of Odisha’s water resources department.
According to the complaint, Vedanta operated numerous borewells without mandatory groundwater clearances, water-drawal agreements or digital flow meters.
“Vedanta relied entirely on groundwater during the construction and commissioning of its Jharsuguda plant between 2005 and 2013 because the pipeline from the Hirakud reservoir became operational only in 2013,” Rao alleged.
Activist Alleges Unauthorised Groundwater Extraction
Based on the complaint, the Central Ground Water Board had asked the Odisha government to constitute a joint committee to investigate allegations of unauthorised groundwater extraction.
An email sent to Vedanta seeking comments remained unanswered until the time of going to press.
Three months ago, the Odisha government had issued a demand notice of ~233.11 crore to Vedanta for alleged unauthorised extraction of water from the Bheden river system.
Vedanta Faces Financial Demands and NGT Scrutiny
The demand comprised water charges, interest and a six-times penalty for unauthorised extraction, which Vedanta contested, terming the assumptions incorrect.
Last month, the National Green Tribunal had also sought responses from the state government, Central Pollution Control Board and Vedanta Ltd on illegal extraction of river water and discharge of untreated industrial effluents into the river.
