KOLKATA: In a positive development for its balance sheet, state-owned mining major Hindustan Copper Limited (HINDCOPPER) announced that the Jharkhand state authorities have substantially reduced an outstanding water tax demand against the company. According to a regulatory filing on Thursday, the Water Resource Department (Ghatshila) has scaled down its initial claim of ₹216 crore to approximately ₹92.17 crore.
Origin of the Industrial Water Dispute
The long-standing legal tussle centers on the industrial consumption of natural river stream water drawn from the Subarnrekha River for the company’s manufacturing and processing operations in Jharkhand.
The Subarnrekha Canal Division had previously slapped the public sector undertaking (PSU) with a massive ₹216 crore demand notice. Hindustan Copper formally contested the calculation, requesting a comprehensive reassessment based on actual operational consumption data and prevailing departmental tax rates.
Breakdown of the Revised Assessments
Following an official data review, the Water Resource Department issued a revised estimate on May 19, 2026, which was received by the company on May 27.
The new aggregate liability of ₹92.166 crore is distributed across two distinct timelines and is split almost evenly between actual usage charges and accumulated penalties:
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Period 2005 to October 2025: ₹87.926 crore
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Period 2000-01 to 2005: ₹4.247 crore
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The Component Split: The revised figure consists of ₹46.623 crore in actual water consumption charges and ₹45.543 crore in penal components.
Ongoing Evaluation and Further Relief Claims
While the administrative reduction of over ₹123 crore represents a significant rollback, Hindustan Copper has indicated that it is not yet ready to settle the matter entirely.
The company stated it is currently evaluating the mathematical calculations and methodology provided by the department. Furthermore, Hindustan Copper has signaled its intent to aggressively petition the state authorities for a full waiver of the ₹45.543 crore penalty component in an effort to further lower its total financial liability.
