Hindustan Copper Water Dues Revised to ₹92 Crore, Company Seeks Penalty Waiver

Kolkata, May 28, 2026: State-owned Hindustan Copper Limited (HINDCOPPER) has received a significant update regarding its long-standing legal tussle with the Jharkhand state authorities. In a regulatory filing on Thursday, the company revealed that the Water Resource Department (Ghatshila) has substantially reduced its outstanding water tax demand from an initial ₹216 crore to approximately ₹92.17 crore.

The Core of the Dispute

The dispute centers on the consumption of natural river stream water from the Subarnrekha River for the company’s operations in Jharkhand. Previously, the Subarnrekha Canal Division had raised a massive demand of ₹216 crore, which HCL formally contested, requesting a reassessment based on actual consumption data and prevailing departmental rates.

Breaking Down the New Figures

Following a review of data provided by HCL, the Water Resource Department issued a revised estimate on May 19, 2026 (received by the company on May 27). The new breakdown includes:

• Period 2005 to October 2025: ₹87.926 crore

• Period 2000-01 to 2005: ₹4.247 crore

• Total Outstanding Estimate: ₹92.166 crore

Notably, this total is split almost equally between actual water charges (₹46.623 crore) and penalties (₹45.543 crore).

Next Steps for HCL

While the reduction of over ₹123 crore from the original demand is a positive development for the miner’s balance sheet, the company is not yet ready to settle. HCL stated it is currently "evaluating the calculation" provided by the department.

Furthermore, the company has signaled its intent to aggressively pursue a waiver of the ₹45.543 crore penalty, arguing for a further reduction in the total liability.