Coke banned from using groundwater in Kerala

In another setback for softdrink giant Coca-Cola (India), Kerala Chief Minister A.K. Anthony announced yesterday that the company would be banned from using groundwater at its Plachimada plant in Palakkad district citing the prevailing drought-like situation in the region.

He said it was up to the company to decide whether it would tap other sources of water or close down the plant.

The chief minister has also directed the district collector to communicate the decision to the company and take necessary steps regarding the issue.

According to the company spokesperson, the plant continues to be in operation as it has received no formal communication from the government.

It is Coca-Cola's only plant in Kerala, and its closure can hamper sales and distribution in the state. The chief minister said the decision concerned only the Coca-Cola plant and not the Pepsi bottling unit at Pudussery in the same district.

Coca-Cola's Plachimada plant has been in the eye of a storm ever since locals launched an agitation last year alleging that the operations were depleting groundwater levels in the area.

The groups also charged the company with letting out slush from its plant into the nearby fields leading to widespread contamination of land and water.

A case on both these charges was filed in the Kerala High Court and the citizens' groups sought the closure of the plant.