The Odisha government has significantly expanded its regulatory scrutiny of Vedanta Ltd's water usage practices in Jharsuguda district. According to reports from Business Standard, the Water Resources department has directed the Burla Irrigation Division to submit a comprehensive report regarding the company's water sources and drawal history. Chief engineer Bijay Kumar Sethy has specifically asked for details of water sources used during the aluminium plant's construction period, along with copies of demand notices raised for that period.
The regulatory action follows a complaint by Satyanarayan Rao, president of Anchalik Paribesh Surakhya Sangh, Jharsuguda, alleging unauthorized water extraction practices. As reported by Business Standard, Rao claimed 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. The complaint alleged that Vedanta operated numerous borewells without mandatory groundwater clearances, water-drawal agreements or digital flow meters during the construction period between 2005 and 2013.
The investigation has already resulted in significant financial demands from the state government. According to Business Standard, the Odisha government issued a ₹233.11 crore demand notice to Vedanta three months ago for alleged unauthorized extraction of water from the Bheden river system. The demand comprises water charges, interest and a six-times penalty for unauthorized extraction, which Vedanta has contested, terming the assumptions incorrect. Additionally, the National Green Tribunal (NGT) has 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.
The Water Resources department has specified detailed requirements for the investigation. As reported by Business Standard, the department seeks the exact period when Vedanta Aluminium Ltd laid the pipeline from Hirakud reservoir after allocation, along with approved copies of the drawal scheme and all agreements executed since the industry's inception. The department has also requested details of all water drawal sources excluding Hirakud reservoir allocation, and copies of Odisha State Pollution Control Board's consent orders related to sewage disposal. The Central Ground Water Board (CGWB) had previously asked the Odisha government to constitute a joint committee to investigate allegations of unauthorized groundwater extraction.
