Odisha mulls cancelling water allocation of flippant units

A final decision on de-allocation is likely to be taken after the state's investment promotion agency submits a report on non-serious industrial units

The Odisha government is mulling to cancel water supply permission given to the industries which have no intention to pursue their projects in the state.

To conserve its water resource and ensure optimal utilisation, the government has decided in principle to turn off water allocation for projects that are inordinately delayed and those which are unlikely to come up. A final decision on de-allocation is likely to be taken after the state's investment promotion agency- Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol) submits a report on non-serious industrial units.

"As of now, we have only proposed to de-allocate water for non-serious industrial units. No decision has been taken yet", said P K Jena, principal secretary, water resources.

Ipicol would review the memorandum of understanding (MoU) signed with industries and suggest cancellation of the MoUs in cases where the projects are unlikely to come up.

Based on the report submitted by Ipicol, the director, water services (allocation), would process de-allocation proposals. The de-allocation would ensure balancing of water of river basins and facilitate water allocation to new industries. Separately, a team consisting of officials from the departments of energy, industries, steel & mines and MSMEs (micro, small & medium enterprises) would jointly conduct field visits of existing industrial units to investigate and recommend reduction of water consumption. The industries adopting new technologies for reduction of water consumption are likely to be given incentives by the government.

Industries would have to utilise the allocated water within three years from the date of allocation. For those industries where the construction period exceeds three years, the validity of the permission can be extended up to five years. Beyond this period, the water allocation may be withdrawn.

The water resources department is also considering a proposal for levying fixed charges on unutilised water by industries. The director, water resources, would collect information on industrial prevailing rate of water cess and commitment charges for non-drawal from the states of Gujarat, Maharashtra, Chhatisgarh, Tamil Nadu and Karnataka.

The state government is examining a proposal for allocating water to industrial units in a phase wise manner.

A joint committee was to assess the total water allocation and actual consumption of the existing industrial and commercial establishments dependent on government water sources.

The committee will be formed with officials drawn from the department of water resources and Ipicol.

Many of the existing industries have been allocated water much more than their present requirement without. Due to non-drawal, the excess allocated water flows to the sea as waste with the state exchequer losing a major chunk of revenue.