Hirakud dam in Orissa

Cuttack, Sept. 1: The Orissa government has failed to collect a huge amount of “water rate” arrears from industries drawing Mahanadi water from reservoirs in the state.

Of the 18 companies drawing water from the reservoirs, as many as 14 owed the state water resource department Rs 149.65 crore.

Orissa Water Planning Organisation’s (OWPO) engineer in-chief Nanda Kumar Mohapatra said 18 companies had been allowed to draw water from four reservoirs — Hirakud, Power Channel, Kolab and Samal — following the Orissa Irrigation (Amendment) Rules, 2010, “for streamlining the water allocation procedure and bringing in rational water use improving efficiency and enhanced water rates”.

Industries drawing water for purposes other than irrigation were being charged Rs 60,000 per cusec of water since 1990. The water rate was enhanced to Rs 1.5 lakh a cusec following an amendment tothe Act in 2010.

At present, 18 industries were utilising nearly 299.80 cusecs of water from the four reservoirs. Nearly 208.89 cusecs were being consumed from Hirakud dam alone.

“As per the agreement’s provisions, industries drawing water from reservoirs are required to compensate the loss of power generation for the quantum of water drawn from reservoirs,” Mohapatra said in an affidavit filed in Orissa High Court.

But records attached to the affidavit indicated that by July, 2011, water rate arrears amounting to more than Rs 143 crore were outstanding against 11 industries drawing water from Hirakud reservoir. More than 90 per cent of it were outstanding against Vedanta Aluminium (Rs 10.43 crore), Bhusan Ltd (Rs 15.79 crore), Shyam DRI Power Ltd (Rs 13.37 crore), Orient Paper Mill (Rs 28.04 crore) , MCL Brajrajnagar (Rs 24.13 crore) and S.E. Railways, Jharsuguda (Rs 42.82 crore).

The records further indicated that three other industries – Action ISPAT, Sterlite Energy Ltd and Ind-Bharat (Utkal), had made a total advance payment of nearly Rs 15.82 crore.

Nearly Rs 5.8 crore was outstanding against South Eastern Railways and Rathi Steel and Power who were drawing water from the power channel reservoir. NTPC was drawing water from Samal reservoir, but no water rate arrears were due against it.

The OWPO engineer in-chief filed the affidavit on Monday in pursuance of a court order directing the state government to submit a status report on using of water from reservoirs by industrial houses along with details of compensation collected in connection with it.

The court issued the order while adjudicating a PIL filed by Keonjhar Navanirman Parishad (KNP), along with other petitions challenging the enhanced power tariff announced by the Orissa Electricity Regulatory Commission (OERC) for 2011-12.