Vedanta Aluminium told to pay Rs 233 crore for unauthorised water extraction in Odisha

Vedanta Aluminium has been asked to pay Rs 233.11 crore for unauthorised extraction of water from Bheden river in Jharsuguda, Odisha, The demand includes dues as well as penalty. The company has been give a month pay the amount which includes outstanding charges and penalties.

Vedanta Aluminium allegedly extracted 1,03,680 cubic meters of surface water daily from May 1, 2025, to April 29, 2026, the Times of India reported citing records from the Burla irrigation division.

The assessment comprises base water charges, a six-time penalty for late payment, and a 2% monthly interest, leading to the significant accumulation of dues.


Officials stated that no payments were recorded during this period, causing the outstanding amount to grow each month. The dues, which began at approximately Rs 2.74 crore in May 2025, increased substantially due to compounding penalties and interest, reaching Rs 233,11,24,926 by April 29.

In a letter to Vedanta Aluminium on Wednesday, the Burla irrigation division stated, “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.”

Sources within the irrigation department indicated that the charges were imposed following reports of unauthorized water extraction from Kherwal Nallah, a tributary of the Bheden river. This extraction reportedly occurred without proper permission and the absence of flow measurement systems.

The department has classified the matter as "urgent" and instructed the company to settle the dues within the specified timeframe. Failure to do so will result in strict legal action under the Orissa Irrigation Act and relevant rules.

Local villagers and environmental groups have also expressed concerns about the impact of large-scale water extraction on the river's ecosystem and surrounding communities.