Vedanta Aluminium Ltd (VAL), a group company of London-based Vedanta Resources, has to make an alternative arrangement to source water for its Rs 8400 crore aluminium smelter and captive power plant at Jharsuguda in Orissa.
As the farmers are agitating against the supply of water to the project from the Hirakud dam reservoir,
VAL is digging an intake well on the riverbed to source water.
With the Orissa government providing water linkage from the Hirakud reservoir, VAL had started construction of the pipeline from Jamadarpali airstrip to the plant site. However, local farmers disrupted the construction work and threatened the company against laying the pipeline.
The agitating farmers, on November 11 last year, built a wall across the pipeline route to prevent the project authority continue the work further.
According to the farmers, the entire water is meant for production of electricity and irrigation, besides being used as the source of drinking water. Yielding under pressure from the farmers lobby in an election year, the state government has reportedly suspended allotting water from the Hirakud reservoir.
However, VAL had no other option but look for alternative sources for water since its 0.5 million tonne smelter at Jharsuguda is ready for trial production and the 1000 megawatt captive power plant for commissioning.