Vedanta Aluminium has been directed to pay Rs 233.11 crore for the unauthorized extraction of water from the Bheden river in Jharsuguda, Odisha. This demand encompasses both dues and penalties, with the company given one month to settle the amount, which includes outstanding charges and fines.
According to reports from the Times of India, Vedanta Aluminium allegedly extracted 1,03,680 cubic meters of surface water daily from May 1, 2025, to April 29, 2026, as documented by the Burla irrigation division.
The assessment includes base water charges, a sixfold penalty for late payment, and a 2% monthly interest, resulting in a significant accumulation of dues. Officials noted that no payments were recorded during this period, leading to a monthly increase in the outstanding amount. The dues, which began at approximately Rs 2.74 crore in May 2025, escalated dramatically due to compounding penalties and interest, reaching Rs 233,11,24,926 by April 29.
In a letter sent to Vedanta Aluminium on Wednesday, the Burla irrigation division stated, “A penalty is hereby imposed for the unauthorized extraction of water, and a demand is hereby raised, which must be complied with 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.”
Sources within the irrigation department indicated that the charges were levied following reports of unauthorized water extraction from Kherwal Nallah, a tributary of the Bheden river. This extraction allegedly occurred without proper permission and the absence of flow measurement systems.
The department has categorized the matter as “urgent” and has instructed the company to resolve the dues within the specified timeframe. Non-compliance will lead to stringent legal action under the Orissa Irrigation Act and relevant regulations.
Local villagers and environmental groups have also raised concerns regarding the effects of large-scale water extraction on the river’s ecosystem and the surrounding communities.
