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Govt to limit water use of industries

Thu, 09th Jun 2016 (Source:The New Indian Express)

With industries not completing their projects on time despite prior commitment in MoUs, the Odisha Government has decided to hand a deadline for use of allocated water to the corporates.

For large industries, water allocation will be made for five years whereas for small and medium enterprises, initial allocation will be for three years. If the industries fail to utilise the water allocated to them within the period, the permission will be cancelled and not renewed unless recommended by Ipicol and State Level Single Window Clearance Authority (SLSWCA).

The industries will have to pay a commitment charge of 5  per cent on the unutilised water if they fail to use the allocated amount during their operational period and seek a re-phasing of the allocation. The operational period is defined as the first three years during which commercial production starts.

In a new set of guidelines, the Water Resources department said industries will have to clearly mention the source of water required for construction which will be for six months. It can be renewed but only upon application. Similarly, for operational period, water will be allocated for three years for MSME and five years for large industries.

If the allocated water is not used by the end of the stipulated time, it would stand de-allocated unless an extension is sought three months before expiry.

The department said while industries have been finding it difficult in some cases to start commercial production within three years, the Government does not get revenue on the unutilised volume of water allocated to industries.

The new guidelines state that re-phasing or revalidation of allocation will be allowed only for two years in case of MSME and three years for large industries after the original operational period. But it will be done only on the recommendation of Ipicol and SLSWCA. During the extended period, the industries will be bound to use the allocated water and pay a commitment charge of 5  per cent of the unutilised volume.

Action plan

Govt has decided to hand a deadline for use of allocated water to the industries

For large industries, water allocation will be made for five years

For small and medium enterprises, initial allocation will be for three years

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