File picture of the Hirakud Dam in Sambalpur

Bhubaneswar, Oct. 31: The state government has served showcause notice on 21 major companies that have acquired water from Hirakud and Upper Kolab reservoirs without valid permission.

“We have issued notices to them as to why water supply will not be discontinued to them for unauthorised acquisition of water. An outstanding due of Rs 315 crore is pending against various industries for the procurement of water from the Hirakud reservoir alone,” said chief engineer of the water resources department Ramakant Satpathy.

The department took the measure, after the authorities of the Odisha Hydro Power Corporation had informed them about the illegal water acquisition from the two reservoirs by some industries without prior permission. These industrial units have neither signed any agreement nor paid water taxes till date.

The corporation said the Jharsuguda division of South Eastern Railway, Orient Paper Mills, Ib Thermal, Hindalco, Bhushan and Steel Power, SMG Power Generation Limited, Aditya Alumina, SPS steel and Power, Shyam Metallics and Energy, Biraj Steel and Energy, Action Ispat and Energy, Vedanta Alumina, Sterlite, Ind Bharat Energy, MSP Metallics and the Aryan Ispat and Power were drawing water from Hirakud reservoir.

The railway’s Sambalpur division and Rathi Steel and Power were taking water from the Hirakud power channel. Besides, public sector Hindustan Aeronautics Limited (HAL) and the National Aluminium Company (Nalco) have also been drawing water from the Upper Kolab reservoir, an official said.

The department has given a deadline till November 20 to pay the taxes, failing which the industries will lose their electric supply from November 21.

In 2012, the state government had informed the Assembly that total 251 industries operating in the state, including big corporate industries such as Nalco, Tata Steel and the Paradip Port Trust. These industries owed Rs 1,634.71 crore (as on September 2011) to the government as water cess.

A written reply furnished by chief minister Naveen Patnaik in the Assembly said 16 large industries together owed Rs 1,422.04 crore of water cess. But, they had filed 24 cases in Orissa High Court.

Other industries included Neelachal Ispat Nigam Ltd, Indian Metals and Ferro Alloys Ltd, Aarat Steel, Indian Oil Corporation Ltd, Orient Paper Mills, Paradip Phosphates Ltd, Vedanta Aluminium Ltd, Mahanadi Coalfields Ltd and Shyam DRI Power Ltd.