Punjab is preparing to allow the industry, including the water guzzling, in yellow and orange zones with its recently constituted Punjab Water Regulation and Development Authority (PWRDA) planning to levy Groundwater Extraction Charge on the units. The charge ranges from a minimum of Rs 4 per 1,000 litres in green zone for the volume up to 10,000 litres per day to a maximum of Rs 22 per 1,000 litres in the orange zone for the volume exceeding 1 lakh litres per day.

The PWRDA, has sought objections from the public on the draft Punjab Groundwater Extraction and Conservation Guidelines 2020 under which the state body would allow setting up of industry in these areas. Earlier, the industry needed permission from the Central Ground Water Authority (CGWA), which had not allowed any industry in yellow and orange zones for last couple of years.

With the state government setting up its own authority now, its permission will be mandatory for extracting groundwater by every user in Punjab for commercial and industrial purposes. The Authority has exempted extraction of groundwater for agriculture and related activities and for drinking and domestic usage. The charges levied on the industry will be based on water meters to be installed by all users.