India: Coca Cola plant shutdown could trigger groundwater reform

Updated - Thursday 08 April 2004

After being forced to halt operations of its soft drinks plant at Plachimada near Palakkad, in Kerala, following allegations regarding misuse of groundwater, Coca Cola's bottled water business in Kerala is hit by an agitation on the same issue. NeST Foods & Beverages, Coca-Cola's ally in the State, which manages Kinley, has suspended operations of its plant near Perumbavoor in Kochi district even as a local village welfare standing committee - in the wake of mounting political pressure and accusations about it depleting the water table - passed a resolution recommending a ban on the use of groundwater for Kinley.

The Vazhakulam panchayat committee now wants an expert panel to look into the allegation of misuse of groundwater by the NeST plant before giving a final ratification to the standing committee's move to ban drawing groundwater.

In Feb 2004, the Government of Kerala told Coca-Cola that villages in the Plachimada area were facing an acute drought and that the soft-drink company should not use groundwater until 15 Jun 2004. This followed a High Court order in Dec 2003 instructing Coca-Cola to stop using local groundwater.

Surita Narain, Down to Earth Editor, writes in a recent editorial that the Coca Cola plant shutdown could and should trigger groundwater reform.

See also: UK: Coca-Cola in bottled water controversy, Source, 9 Mar 2004, http://www.irc.nl/page/8418

Contact: Surita Narain, Editor, Down to Earth, editor@downtoearth.org.in

Source: The Hindu Business Line, 18 Mar 2004
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