Industry in Pithampur has urged the Madhya Pradesh government to take up the issue of water shortage in the industrial area on a priority basis.
The industry association wants the government to expedite the Narmada-Kshipra link water supply project.
Pithampur is facing its worst water crisis in years, with the government agency halted piped water supply due to maintenance work at the main reservoir.
"The situation is very grim. The industrial units are now dependent on water tankers to meet their daily requirement and have to pay steep charges," Pithampur Audyogik Sangathan president Gautam Kothari said.
"Several units, especially pharmaceutical units, have slashed production due to water shortage," he said further.
The other option of drawing underground water works for only those units that have the capability to convert the hard water.
The two major sources of supply to the industrial area - divided into three sectors including the special economic zone (SEZ) - are Sanjay Jalashay and Karam dam.
While levels in Karam dam have already fallen below the minimum mark, supply from Sanjay Jalashay was also stopped last week.
"The water resources department is carrying out some maintenance work at Sanjay Jalashay and so the supply has been affected," an official of Audyogik Kendra Vikas Nigam (AKVN) Indore said.
The Pithampur industry faces acute water shortage every summer as the levels in the reservoirs come down.
However, this year, the problem is more acute. The recurring problem is expected to be resolved in next two to three years when the Narmada-Kshipra Link project will become operational.
However, the project is stuck as the tendering process has been delayed due to difference of opinion between state industry department officials and Delhi-Mumbai Industrial Corridor (DMIC) Development Corporation officials in New Delhi.