As per The Business Standard report, The Odisha government has issued a notice to Vedanta Aluminium Limited, demanding ₹233.11 crore for allegedly extracting water from the Bheden river without authorisation. The company, however, denies any wrongdoing.
The notice, dated April 29, 2026, accuses Vedanta Aluminium Limited of unauthorised water extraction from the Bheden river system between May 2025 and April 2026.
The demand includes base water charges, 2% interest, and a 6-time penalty for lifting over 30 lakh cubic metres of water monthly without permission.
This action follows complaints from villagers and a field verification by the Water Resources Department.
Vedanta Aluminium has strongly contested the allegations, stating that the penalty is based on incorrect assumptions and does not reflect the factual or regulatory position.
The company claims to operate under valid water drawal agreements with the Department of Water Resources, authorising a total drawal of 112.9 cusecs of water.
Vedanta maintains that its actual drawal from the Hirakud reservoir is approximately 80 cusecs, which is within approved limits.
The Odisha government's action was prompted by complaints received in May 2025 and February 2026, leading to a district-level revenue review meeting on April 7, 2026.
A subsequent field inspection allegedly confirmed the unauthorised water extraction. The departmental calculation sheets indicate that Vedanta extracted water ranging from 32,14,080 cubic metres in May 2025 to 30,06,720 cubic metres in April 2026.
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The notice warns that failure to comply could result in action under the Orissa Irrigation Act and Rules, 1959 and 1961. Vedanta has been directed to cease all unauthorised water-lifting activities immediately.
As of May 04, 2026, at 9:33 AM, Vedanta share price on NSE was trading at ₹289.25 up by 6.52% from the previous closing price.
The Odisha government's notice to Vedanta Aluminium Limited highlights a significant regulatory challenge concerning water resource management. While the company denies the allegations, the situation underscores the importance of compliance with local regulations.
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Published on: May 4, 2026, 9:47 AM IST
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