Many pharmaceutical companies in special economic zone (SEZ), Pithampur have slashed their production due to acute shortage of water.
On Monday, the government agency had stopped piped water supply due to fall in water level and maintenance work at the reservoir dealing a big blow to the industry.
The Pithampur industrial area has a demand of 12-13 MLD (million litres a day) while the government agency was supplying about 4 MLD before stopping the supply.
The industry association is now planning to take up the matter of acute water crisis with the industry minister.
"The situation is very grim and we are depending entirely on water tankers. The pharma companies have been hit hard as they require quality water and cannot use hard water," Pithampur Audyogik Sangathan president Gautam Kothari said.
"Some companies such as Lupin have cut down production by half," he said.
The industry's hopes of getting adequate water through Narmada-Kshipra link project by next year have also been dashed as the project has remained stuck.
Sources say that difference of opinion between Delhi-Mumbai Industrial Corridor (DMIC) Development Corporation officials in New Delhi and state industry department officials has delayed the tendering process.
The association has lamented that no prior warning was given to them before stopping the water supply.
"In the past, we used to get monthly report on the water table of the reservoirs, but this practice has been stopped," Kothari said adding that supply will resume only after the onset of monsoon.
"The supply from Sanjay Jalashay (reservoir) has been stopped due to maintenance work that should take about 10 days," an official of Audyogik Kendra Vikas Nigam (AKVN) Indore said.
The state government in February had initiated the process of building infrastructure for the project to supply water to Pithampur industrial area.
The Pithampur Jal Prabhandhan Company Ltd (PJPCL), a special purpose vehicle, had invited bids to select a consultant for review of the detailed project report other related works for improvement of water supply system.
The consultant will see to it that the project is implemented in accordance with the plan within the stipulated time.