NSE/BSE Codes: BSE Scrip Code: 513599, NSE Symbol: HINDCOPPER

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory filing regarding reassessment of water usage charges by Jharkhand Water Resource Department, constituting a material development in ongoing proceedings between Hindustan Copper Limited and State of Jharkhand authorities.

Involved Parties / Authorities:

  • Hindustan Copper Limited (Company)
  • Subarnrekha Canal Division, Water Resource Department, Ghatshila, Jharkhand (Government Authority)
  • State of Jharkhand & Ors (Counterparties in legal matter)

Date / Timeline of Event:

  • Initial dispute: Historical water usage from 2000-01 to October 2025
  • Previous communication: Company letter dated 04.05.2026
  • Department response date: 19.05.2026
  • Company receipt date: 27.05.2026
  • Disclosure filing date: 28.05.2026

Brief Description of Outcome / Dispute:

The Water Resource Department, Ghatshila, Jharkhand has reassessed the outstanding water charges payable by Hindustan Copper Limited for consumption of natural river stream water from river Subarnrekha at Jharkhand. The department has reduced its demand from the previously claimed ₹216 crore to ₹92.166 crore total outstanding amount, covering the period from 2000-01 to October 2025.

Impact of Outcome:

Financial Impact:
  • Total outstanding amount reduced by ₹123.834 crore (from ₹216 crore to ₹92.166 crore)
  • Breakdown of outstanding amount:
  • ₹87.926 crore for period 2005 to October 2025
  • ₹4.247 crore for period 2000-01 to 2005
  • ₹45.543 crore penalty component (subject to waiver request)
  • The final financial impact remains subject to company's evaluation and potential penalty waiver
Operational / Business / Strategic Impact:
  • The resolution of this long-standing dispute would provide clarity on historical liabilities
  • Successful waiver of penalty amount (₹45.543 crore) would further reduce financial burden
  • Ongoing operations at Jharkhand facilities continue during evaluation process

Next Steps / Required Actions:

  • Company is currently evaluating the calculation methodology provided by Water Resource Department
  • HCL will formally request waiver of penalty component of ₹45.543 crore
  • Further negotiations and communications expected with department officials
  • Potential settlement discussions may follow company's evaluation