Odisha water resources dept plans Rs 2,500 cr corpus fund

The state water resources department has planned to create a corpus fund of Rs 2,500 crore by levying a fee of Rs 2.5 crore per cusec of water allotted to industrial units.

The proposed fund would be utilised to construct 20 in stream storage structures that can be used by industries in lean months.

The department is aiming at optimal utilisation of water and avoid waste.

To conserve its water resource and ensure optimal utilisation, the government has decided in principle to turn off water allocation for industries which are delayed or 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.

Ipicol would review the memorandum of understanding (MoU) signed with industries and suggest cancellation of the MoUs in cases where the industries are not coming up.

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.

Industries would have to utilise the allocated water within three years from the date of allocation. Where the construction period exceeds three years, the water allocated needs to be utilised in a span of five years. Beyond this period, water may be de-allocated.

The water resources department is also considering a proposal for levying fixed charges on unutilised water. The director, water resources would collect information on industrial water rate, fixed or commitment charges for non-drawal as in vogue in states like Gujarat, Maharashtra, Chhattisgarh, Tamil Nadu and Karnataka.

Also, the state government is examining a proposal for allocating water to industrial units in a phased manner.

A joint committee was to assess the total water allocation and actual consumption of the existing industrial and commercial establishments drawing water from government owned 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. Due to non-drawal, the excess water flows into the sea as waste with the state exchequer losing a major chunk of revenue.