Vedanta Aluminium Fined ₹233 Crore for Illegal Water Extraction in Odisha
Vedanta Aluminium told to pay Rs 233 crore for unauthorised water extraction in Odisha
The Economic TimesImage: The Economic Times
Vedanta Aluminium has been ordered to pay ₹233.11 crore (approximately $28 million USD) for unauthorized water extraction from the Bheden river in Jharsuguda, Odisha. The penalty arises from the company's alleged daily extraction of over 103,000 cubic meters of water without proper permissions, leading to significant environmental concerns.
- 01Vedanta Aluminium fined ₹233.11 crore for unauthorized water extraction.
- 02The company allegedly extracted 103,680 cubic meters of water daily from May 2025 to April 2026.
- 03Charges include base water fees, penalties, and interest for late payment.
- 04Local communities and environmental groups are concerned about ecological impacts.
- 05Failure to pay may result in legal actions under the Orissa Irrigation Act.
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Vedanta Aluminium has been instructed to pay ₹233.11 crore (roughly $28 million USD) for unauthorized extraction of water from the Bheden river in Jharsuguda district, Odisha. The company reportedly extracted 103,680 cubic meters of surface water daily from May 1, 2025, to April 29, 2026, without the necessary permissions. The total amount includes base water charges, a six-time penalty for late payment, and a 2% monthly interest, which led to a significant accumulation of dues from an initial amount of approximately ₹2.74 crore in May 2025. The Burla irrigation division has mandated that Vedanta comply with the payment within one month, warning that failure to do so will result in strict legal action as per the Orissa Irrigation Act and Rules of 1959 & 1961. Local villagers and environmental organizations have raised alarms about the ecological consequences of such large-scale water extraction, emphasizing the need for responsible management of water resources.
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The fine and potential legal actions could affect Vedanta Aluminium's operations and financial stability, which may in turn impact local employment and economic activities.
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