Cuttack, May 17: The legal battle over the state government's bid to collect one-time contribution of Rs 2.5 crore per cusec of water from industries which will draw water from rivers and reservoirs for the Water Conservation Fund (WCF) intensified in Orissa High Court today.

While six more companies moved separate petitions seeking intervention against the letter of demands issued to them, the high court today granted stay orders on them.

"The division bench of Chief Justice Vineet Saran and Justice B.R. Sarangi posted the matter to July 11 for analogous hearing of all the petitions and directed the state government not to give effect to the letter of demands issued to the petitioner companies," advocate general Surya Prasad Mishra saidtoday.

On May 2, the court had issued stay orders on the letter of demands issued to Bhusan Power and Steel Ltd, Odisha, Bhusan Steel Ltd, New Delhi, and Jindal Steel and Power Ltd. The court issued stay orders on the letter of demands issued to Hindalco Industries Ltd, Adhunik Metaliks Ltd, Aditya Aluminium, Shyam Metallics & Energy Ltd, Utkal Alumina International Ltd and Indian Metals & Ferro Alloys.

"The court further directed the state government submit a common reply to all the petitions within four weeks to facilitate file of rejoinders by the petitioner companies before the matter came up on July 11," the advocate general said. On May 15, 2015, the state cabinet passed a resolution for creation of Water Conservation Fund by way of receipt of one-time contribution of Rs 2.50 crore per cusec from industries drawing one cusec of water or more. Later, another resolution passed on November 3, 2015, granted the industries the liberty to pay the contribution amount in five equal instalments. Subsequently, letter of demands were issued to the industries.

The petitioners have sought quashing of the two resolutions. "The imposition of the one-time contribution was 'exploitative, unilateral and out-and-out illegal'," it has been alleged.

The state government has allocated 2,543.460 cusecs of water to industries and other facilities from 19 irrigation and dam divisions and estimated to collect Rs 6,358.65 crore towards contribution by industries, which have been allocated water from various rivers and irrigation projects.

The state government plans to utilise the WCF for construction of various water conservation projects - medium irrigation projects, minor irrigation projects, dams, barrages, weirs, bridge-cum barrages, check-dams for conservation of water to be used during lean season for agriculture purposes.

The Confederation of Captive Power Plants, Odisha, has also filed a petition challenging the two resolutions issued by the state. The court, however, has not granted a stay order in response to it so far.