The Odisha government has served a demand notice of Rs 233.11 crore on Vedanta Aluminium in Jharsuguda for the unauthorised extraction of water from the Bheden river. The amount includes both the principal dues and a penalty for the violation.
Details of the Demand
The irrigation department has given the company a one-month deadline to deposit the amount. According to the water rent calculation sheet prepared by the office of the superintending engineer, Burla irrigation division, Vedanta Aluminium allegedly drew surface water at a rate of 1,03,680 cubic metres per day from May 1, 2025, to April 29, 2026. The assessment includes base water charges, a six-time penalty for delayed payment, and a 2% monthly interest, resulting in a steep accumulation of dues.
Non-Payment and Escalation
Officials said no payment was recorded during the entire period, leading to an accrual of outstanding amounts month after month. The dues, which started at around Rs 2.74 crore in May 2025, escalated sharply due to compounding penalties and interest, eventually reaching Rs 233,11,24,926 as of April 29.
“A penalty is hereby imposed for the unauthorised extraction of water, and a demand is hereby raised, which must be complied within the stipulated time period of one month. Failing to comply with the above directions shall invite strict legal action as per the Orissa Irrigation Act and Rules 1959 & 1961,” the Burla irrigation division wrote to Vedanta Aluminium in a letter.
Legal and Environmental Concerns
Sources in the irrigation department indicated that the charges were imposed following allegations of unauthorised water extraction from Kherwal Nallah, a tributary of the Bheden river, without proper permission and the absence of flow measurement systems. The department has termed the matter “urgent” and directed the company to clear the dues within the stipulated period, failing which strict legal action under the Orissa Irrigation Act and relevant rules may be initiated.
The issue has also drawn complaints from local villagers and environmental groups, who have raised concerns over the impact of large-scale water extraction on the river ecosystem and surrounding communities. Despite repeated attempts to reach out to officials of Vedanta Aluminium for comment, phone calls went unanswered.
