[E-rundbrief] Info 270 - Coca-Cola-plant shut in India

[Matthias Reichl]

E-Rundbrief - Info 270 - The Kerala State Pollution Control Board ordered 
to to "stop production of all kinds of products with immediate effect" in 
large Coka Cola-plant in South India.

Bad Ischl, 31.8.2005

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Coke plant ordered shut in South India

Plachimada: In a major setback for the Coca-Cola company, the Kerala State 
Pollution Control Board has ordered the company's bottling plant in south 
India to "stop production of all kinds of products with immediate effect."

The Coca-Cola company, in direct contravention of Indian laws, had resumed 
"trial" operations at its Plachimada bottling facility in southern India on 
August 8, 2005. The bottling plant, one of Coca-Cola's largest, has been 
shut down since March 2004 because of community opposition.

The community is experiencing severe water shortages and the groundwater 
and soil have been polluted - directly as a result of Coca-Cola's operations.

The Kerala Pollution Control Board, in a 10 page order issued today, notes 
that the company has yet to explain the large amounts of cadmium in its 
sludge, which is contaminating the groundwater, making it unfit for human 
consumption. The Board further finds fault with the company as it has not 
abided by two previous orders - installing an effluent treatment facility 
for treating the wastewater and providing piped drinking water to community 
members affected by the company's over-extraction of water.

"We welcome the order of the Pollution Control Board which shuts the 
factory down," said R. Ajayan of the Plachimada Solidarity Committee which 
was largely responsible for approaching the health minister and the 
chairman of the Kerala Pollution Control Board to get the order. "Now we 
have to continue to work to with the state government to ensure that 
Coca-Cola abides by the order and there are no more violations from the 
company."

In a related development, the Vigilance and Anti-Corruption Bureau in 
Kerala raided the residences of Pollution Control Board member-secretary 
K.V. Indulal in three cities in Kerala on August 11, 2005. The 
Anti-Corruption Bureau is investigating Mr. Indulal for accepting bribes 
while he was a member of the Pollution Control Board.

The Coca-Cola campaign has maintained that Mr. Indulal was influenced by 
the Coca-Cola company when, in 2003, he visited Plachimada to investigate 
groundwater pollution by the company. After his "investigations", Mr. 
Indulal issued a clean chit to the Coca-Cola company, stating that the 
pollution was not "beyond tolerable limits." However, recent investigations 
by both the Kerala Pollution Control Board as well as the British 
Broadcasting Corporation had found extremely high levels of pollution in 
the area, and a subsequent Kerala Pollution Control Board study confirmed 
extremely high levels of cadmium.

Coca-Cola campaign activists had accused Mr. Indulal of suppressing 
evidence and taking bribes in order to favor the Coca-Cola company, which 
has resulted in the investigation and action by the Vigilance and 
Anti-Corruption Bureau.

The Coca-Cola company finds itself in deep trouble in India. Coca-Cola's 
sales have dropped 14% in the last quarter (April-June) in India, and the 
company is undergoing major reorganization in the country, including a 
change in the top leadership, in an effort to contain the growing 
opposition. The state government of Kerala recently announced that it will 
also challenge Coca-Cola's right to extract water from the common 
groundwater resource. The company also finds itself the target of local 
campaigns in at least three other communities, with literally tens of 
thousands of people mobilizing to challenge the company for creating severe 
water shortages and pollution.

"We welcome the actions by the state agencies in Kerala to stop the 
arrogance and criminal activities of the Coca-Cola company," said Amit 
Srivastava of the India Resource Center, an international campaigning 
organization. "These actions are major victories for the community of 
Plachimada, which has all along been demanding that the state do what it is 
supposed to do - safeguard the interests of the community."

Contacts:
R. Ajayan, Plachimada Solidarity Committee (India)
Tel: +91 98471 42513

Amit Srivastava, India Resource Center (India, US)
E: info at IndiaResource.org T: +91 98103 46161 (India)
+1 415 336 7584 (US)
Liepollo Lebohang Pheko

  Gender and Trade Network in Africa-Senior Policy & Dialogue Specialist
  Motheho Mokhantso Innovators - Director responsible for - Human 
Enhancement, Policy Development,Training,Social Accounting
tel:27  11 838 0449
fax:27 11 832 2665
e:Lebohang at sn.apc.org
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