Kerala State Govt rules against Coca-Cola on water extraction
Boycott Coke | 25.02.2004 09:43 | Globalisation
The regional government for the Indian state of Kerala on Tuesday told Coca Cola to cease drawing water from wells in Plachimada after the village's officials complained that the company was depleting scarce supplies.
The government of India's Kerala state has ordered American soft drink giant Coca Cola to stop using groundwater at its local plant until monsoon rains start in June, a decision that Coke officials Wednesday described as ``unwarranted and unjustifiable.''
The government said the order would be in effect as soon as it was printed and published, which could happen any day.
The Perumatty village council, which controls several villages, including Plachimada, has alleged that the Coca Cola plant draws 1.5 million liters (400,000 gallons) of water daily through dozens of wells, leaving local farmers with parched fields.
Kerala's top elected official, Chief Minister A.K. Antony, said Tuesday the villages in the area are facing acute drought and the soft drink company should not use groundwater until June 15, when monsoon rains would arrive.
Coca Cola officials said the company had not received any formal notification.
``But any discriminatory and extreme step against our factory by the Kerala government is unwarranted and unjustified as the matter is pending in a court of law,'' Vijay Bhaskar Reddy, a Coca Cola communications manager, said from the company offices Wednesday in Hyderabad, in Andhra Pradesh state.
In December, a top court in Kerala had ordered the Coca Cola plant to stop using groundwater and arrange to get water through other sources.
The court also asked Coke to install water meters to measure the amount of water it uses until it finds alternative sources.
The company has challenged that order and the case is pending.
Reddy said that Coca Cola would decide its response after it gets the government order. ``But the Coke factory is not depleting ground water resources. We have conducted scientific studies to prove our points before the court,'' he said.
Coca Cola has also set up rainwater harvesting facilities at Plachimada, he said.
Activists, farmers and villagers have staged protests outside the plant over the past year. Coke officials have said most of the protesters are paid, or are opposed to the corporation doing business in India on political grounds.
Coca Cola employees Wednesday condemned the government decision to stop them from drawing groundwater.
``Thousands of families have been dependent on this factory and any stoppage of work would affect the livelihood of these families,'' said a statement from the Coca-Cola Employment Protection Committee.
The government said the order would be in effect as soon as it was printed and published, which could happen any day.
The Perumatty village council, which controls several villages, including Plachimada, has alleged that the Coca Cola plant draws 1.5 million liters (400,000 gallons) of water daily through dozens of wells, leaving local farmers with parched fields.
Kerala's top elected official, Chief Minister A.K. Antony, said Tuesday the villages in the area are facing acute drought and the soft drink company should not use groundwater until June 15, when monsoon rains would arrive.
Coca Cola officials said the company had not received any formal notification.
``But any discriminatory and extreme step against our factory by the Kerala government is unwarranted and unjustified as the matter is pending in a court of law,'' Vijay Bhaskar Reddy, a Coca Cola communications manager, said from the company offices Wednesday in Hyderabad, in Andhra Pradesh state.
In December, a top court in Kerala had ordered the Coca Cola plant to stop using groundwater and arrange to get water through other sources.
The court also asked Coke to install water meters to measure the amount of water it uses until it finds alternative sources.
The company has challenged that order and the case is pending.
Reddy said that Coca Cola would decide its response after it gets the government order. ``But the Coke factory is not depleting ground water resources. We have conducted scientific studies to prove our points before the court,'' he said.
Coca Cola has also set up rainwater harvesting facilities at Plachimada, he said.
Activists, farmers and villagers have staged protests outside the plant over the past year. Coke officials have said most of the protesters are paid, or are opposed to the corporation doing business in India on political grounds.
Coca Cola employees Wednesday condemned the government decision to stop them from drawing groundwater.
``Thousands of families have been dependent on this factory and any stoppage of work would affect the livelihood of these families,'' said a statement from the Coca-Cola Employment Protection Committee.
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