Vedanta’s aluminium manufacturing facility located in Jharsuguda, Odisha, is currently facing significant scrutiny from regulatory bodies due to accusations of unauthorized groundwater extraction. This has led to both state and central authorities launching a comprehensive investigation into the plant’s water usage history.
The Odisha government is particularly focused on Vedanta’s operations, prompting the water resources department to request an in-depth report detailing the sources of water the company has utilized and its extraction history since the plant’s inception.
In a directive issued to the Burla irrigation division, the department has sought clarification on the source of water used by Vedanta Aluminium Ltd, including the rates at which water charges are applied. Chief engineer Bijay Kumar Sethy has instructed the superintending engineer of the Burla division to provide details on the total quantity of water extracted during the plant’s construction phase, along with the relevant demand notices issued during that time.
In a letter dated August 21, the department specified the need for documentation regarding the installation of the pipeline from the Hirakud reservoir, including approved project plans and agreements made since the plant began operations.
This scrutiny follows a complaint lodged by Satyanarayan Rao, president of the Anchalik Paribesh Surakhya Sangh in Jharsuguda, who accused Vedanta of illegally extracting groundwater through borewells for industrial purposes without the necessary approvals, thus violating environmental regulations and directives from Odisha’s water resources department. Rao claimed that Vedanta had relied heavily on groundwater during the construction and commissioning of its Jharsuguda facility, operational from 2005 to 2013, prior to the pipeline from the Hirakud reservoir becoming functional.
In light of these allegations, the Central Ground Water Board has requested the Odisha government to form a joint committee to further investigate the claims of unauthorized groundwater extraction. Attempts to obtain comments from Vedanta via email went unanswered at the time of this report.
Three months prior, the Odisha government had issued a demand notice to Vedanta for around Rs 233.11 crore concerning alleged unauthorized extraction from the Bheden river system. This notice included water charges, accrued interest, and a penalty amounting to six times the unauthorized extraction costs, which Vedanta has contested, asserting that the claims are unfounded. Additionally, the National Green Tribunal has recently called for responses from the state government, the Central Pollution Control Board, and Vedanta regarding the illegal extraction of river water and the disposal of untreated industrial waste into the river.
