Plachimada, (Palakkad district) Kerala: The Coca Cola story in Plachimada is reminiscent of

David versus the mighty Goliath. In the latest twist to the tale, the Kerala Government
through the Secretary, Local Self Government Department (LSGD) has stayed the Perumatty
Grama Panchayat's decision not to renew the license issued to the Hindustan Coca Cola
Beverages Ltd. (HCBL), an Indian arm of Coca-Cola. The LSGD has ordered a status quo till
July 18, 2003 before disposing off the appeal filed by HCBL
against the Panchayat's decision.

Under the Indian Constitution (Article 243 G), the

legislature of a State may endow the Panchayat (elected
body at the village level) with necessary powers and authority to function as an institution of
self-government. However, the Kerala Panchayati Raj Act also allows an entrepreneur to
appeal to the Government of Kerala, against the decision of a Panchayat.

On April 7, the 15-member Panchayat board decided not to renew the industrial license
issued to the Coca Cola factory on the ground of "protecting public interest," as the company
was "causing shortage of drinking water in the area through over-exploitation of ground
water sources."
"It was a decision that acknowledged the growing resentment against the multinational
company," said A. Krishnan, Panchayat President and a member of the Janata Dal, a
constituent of the opposition Left Democratic Front (LDF) in Kerala. "The Panchayat's
decision was based on Section 232 of the Kerala Panchayati Raj Act, 1994 giving the local
body sufficient authority to notify that no place within its jurisdiction shall be used for
purposes offensive or dangerous to human life or health," said Mr. K.N.Unnikrishnan,
Special Grade Secretary of the Panchayat.
More than a year after local people started complaining of massive extraction of ground water
by the bottling unit of HCBL and the consequent depletion and contamination of well water
in Plachimada village in Palakkad district, the Kerala State Health Department has come up
with data that validate the charges. The medical officer of the Public Health Center in the
village recently informed the Perumatty Grama Panchayat that people should not drink water
from the three wells neighboring the Coca Cola plant.
Water samples from these wells analyzed at the Regional Analytical Laboratory at Kozhikode
under the orders of the District Medical Officer have revealed hardness, chlorides and
concentration of total dissolved solids (TDS) beyond tolerable levels for drinking water.
The Public Health Center's letter supports the contentions of the people of Plachimada
village. For over a year, women in the Vijayanagaram Colony in the village have been
walking nearly 5 kilometers up and down every morning and evening to fetch a pot of water.
The open wells in the Colony have either dried up or the little water left in them has become
unpalatable.
Before HCBL started bottling operations in 1999, the wells in the colony used to meet the
needs of the neighboring colony too. "Now, all nine wells in the colony have become
unusable," said Mylamma, a grandmother from the Malasar tribe. "Water tastes bitter. When
used for bathing, it leads to itching and swelling on the body and a burning sensation in the
eyes. My grandchild was born retarded. I suspect this has got something to do with the
water," Mylamma added. She has remained steadfast at the picket in at the HCBL gates for
over a year. The agitation is still on, though weakened considerably by internal dissensions
and threats from the counter-agitation by factory workers who have organized into an
'employment protection forum.'
Over the past year, the State Ground Water Department, the Central Ground Water Board, the
Kerala Legislative Committee on Environment and the Kerala State Pollution Control Board
have conducted different studies on depletion and contamination of water in the area. "None
of these official institutions acknowledged that there was a problem in the village, leave aside
establishing a link between the massive water extraction of water by the Coca Cola company
and the depletion and contamination of well water," says Sunderarajan, an activist associated
with the Coca-Cola Virudha Samara Samithi (Anti-Coca Cola Agitation Council).
After studying water level trends and quality in 20 wells in and around the factory, the State
Ground Water Department had concluded in 2002 that only three wells showed quality
problems and a drop in water levels. Observing that there has been a reduction in the average
annual rainfall in the area --from 2137 mm in 2000 to 1147 mm in 2001 and just 670 mm in
2002-- the Department's report said the depletion of water in the open wells was due to poor
rainfall, the resultant reduced groundwater recharge and the high density of irrigation bore
wells.
"Instead of carrying out a comprehensive water balance analysis of the watershed, the State
Ground Water Department has come up with a hotchpotch report to justify Coca Cola and
eulogize the company's inadequate water harvesting system," said Vinod Kumar of Maithri, a
local NGO implementing the World Bank-aided drinking water and sanitation project in the
neighboring Mudalamada Panchayat. "The report is based on insufficient field data (only 8
months' rainfall) collected from too small an area (one square kilometer) and lacking in
several important parameters, such as soil type, depth, slope, land use pattern, surface run-
offs, etc. required for assessing groundwater recharge. No effort has been made to
independently verify either the quantity of water extracted daily by the Coca Cola factory or
the amount of water the company claims to store and recharge through rainwater harvesting,"
Vinod Kumar said. "The claim of the Ground Water Department that Coca Cola collected
"3.5 million liters of rainwater" from 35 acres of land area in just 3-4 precipitations
contradicts scientific principles of runoff and its own rainfall data," he said.
The Ground Water Department report, nevertheless, had said that it was "necessary to restrict
the exploitation of ground water regime" and that the "intake of water by the Coca Cola
company should be regulated to a bare minimum of 0.3 million liters per day (mld)." HCBL
officials did not clarify whether they have accepted the recommendation. When contacted,
HCBL spokesperson Vijay Bhaskar Reddy, General Manager, Public Affairs and
Communication, said the company officials were "too busy reviewing the business and could
not spare time for answering queries from the media."
The quantity of ground water HCBL pumps out everyday is a matter of contention. HCBL
officials have been claiming that the Kerala unit consumed between 0.3 and 0.6 million liters
of water per day during off-peak and peak seasons respectively. While the company asserts
that only six bore wells and two open wells are being used in the plant, civil society
investigations have refuted these claims.
A People's Commission chaired by environmentalist Dr. A. Achuthan and another study team
of Jananeethi, a Thrissur-based human rights NGO, found eight bore wells on the premises
during their site inspection. "Given the capacity of the water pumps (7.5 HP X 4 and 5 HP
X2), the company can extract more than 0.1 million liters of ground water in an hour through
the bore wells alone," argues the report of the People's Commission, published in November
2002. "Assuming a minimum pumping of 10 hours per day, the company could be extracting
close to 1 million liters of water every day," the report says. "Every day the company is
siphoning off a quantity of water equivalent to what is needed to meet the minimum
requirements of around 20,000 people."
"Considering the huge difference between the amount of water pumped out and the water
recharged into the ground by the Coca Cola factory, people's fear of long-term adverse
impacts on agriculture seems justified," the Commission observed. The team found that
nearly 250 hectares of wet paddy fields in the neighborhood of the factory have already dried
up.
"As of now, it is difficult to demarcate the effect of bad weather and the resultant shortage of
drinking and irrigation water from the lowering of the water table due to excessive pumping
by Coca-Cola," the Jananeethi team observed. Located in a rain shadow region, Plachimada
village gets very little rainfall. To make matters worse, a large number of irrigation bore
wells had already been dug in the area and competitively deepened by the users. Three
reservoirs, a canal from the Meenkara dam and the moderate slope of the terrain have all been
helping in ensuring some amount of recharge of ground water in the region. But now the
Coca Cola unit has upset the delicate water balance in the village.
Water Contamination
People's wrath against the Coca Cola unit is also on account of the worsening water quality in
the village. Independent studies have found that the water left in a few open wells in the
neighborhood of the plant contain high amounts of chlorides and total dissolved solids. The
chloride content in the water was 540 mg/l in the samples collected by Jananeethi in July
2002, against the desirable standard of 250 mg/l for drinking water. Another study by the
Integrated Rural Technology Center (IRTC), Palakkad, found 519.4 mg/l and 489 mg/l of
chlorides in water samples drawn on 29 June 2002 from a dug well and a drilled well near
HCBL unit. The District Medical Officer's study detected much higher values for chlorides
(770 mg/l, 910 mg/l and 860 mg/l) in the three wells that belonged to Pozhanthal,
Subramanian and Muthuswamy living near the Coca Cola factory.
Similarly, the amount of Total Dissolved Solids (TDS) have been observed to be high in all
the water samples analyzed by these agencies: 551.6 mg/l (Jananeethi); 1100 and 1254 mg/l
(IRTC); 1318, 1512, 1434 mg/l (DMO) against a desirable limit of 500 mg/l.The studies also
indicate that the hardness (as calcium carbonate) in the water is excessively high: 1120 mg/l
(Jananeethi); 1110 and 1240 (IRTC); 1130, 1060,1190 mg/l (DMO) against a desirable limit
of 300 mg/l.
"The high alkalinity, total hardness, chloride content, Total Dissolved Solids and MPN (Most
Probable Number, a measure of bacterial contamination usually expressed in no/100 ml)
values of the water in the area do not conform to drinking water standards. The water is very
hard. Its dissolved oxygen content is low. Since the MPN value is high, bacterial
contamination could be suspected," said the Jananeethi study, concluding that "the water of
the wells of this area are polluted and unfit for domestic use."
"How could such a water-intensive unit have been allowed in a drought-prone area," asks
Arumughan Pathichira, a member of the Agitation Council. "At the time of construction of
the factory, the Ground Water Department was not consulted as it was not mandatory,"
admits the Ground Water Department report. While the report claims that Coca Cola had
conducted an environmental impact assessment (EIA) prior to setting up the unit, none of the
civil society groups had ever been shown any such report.
Panchayats Politico-legal Battle
The Public Health Center's letter is so far the only official document with the Perumatty
Gram Panchayat that supports its contentions against the Coca Cola bottling plant.
Nevertheless the Panchayat has sought to take on the Cola giant, and the outcome of the
battle will have far reaching implications. In its petition filed before the High Court, HCBL
had claimed that the Panchayat's decision was malafide, predetermined and unsupported by
any documentary evidence of depletion of ground water and environmental pollution. In
support of its argument, the company produced before the High Court several documents
from the Director of Factories, the State Pollution Control Board, Director of Ground Water
Department, National Geophysical Research Institute and a few local NGOs.
In a similar, earlier case, the Kerala High Court had ruled that "if an entrepreneur produced
sufficient positive certification from the competent authorities, then the Panchayat President
was liable to act on the same and issue permission/license unless bound by valid policy
reasons." However, reversing the High Court verdict, the Supreme Cort of India had upheld
(in the case of Action council, Poovathode Vs. Bennyny Abraham, SCC, 2002 (9) 493) the
right of a panchayat to refuse an industrial license.
Without commenting on the merits of the technical data, the High Court of Kerala on 16
May, 2003 had granted permission to HCBL to move the appellate authority. "The concerned
authority shall consider the representation and pass appropriate orders within one month,"
ordered Justice K.Thankappan of the High Court. As per the Panchayat Act, an independent
tribunal should have been constituted as the appellate authority. However, in its absence, the
Secretary, Local Self Government Department, is the designated appellate authority.
"The court order asking a government official to sit in judgment of the decision of the
people's representatives is against the Indian Constitution and democratic principles," argues
the Panchayat president. "If the government Secretary issues an order contradicting the
decision of the Panchayat, we shall think of approaching the court on this issue," says
Krishnan Kutty, president of Janata Dal, the political party that rules Perumatty Panchayat.
Close on the heels of the Perumatty Grama Panchayat, the Pudussery Grama Panchayat, also
in Palakkad district, decided on May 15 to cancel the license of the other soft drink major,
PepsiCo India Holdings Pvt. Ltd. operating at the Kanjikode Industrial Estate. The
Panchayat's decision was an extension of the Communist Party of India (Marxist) policy of
boycotting the products of the multinational corporations in the wake of the US-led war on
Iraq and its campaign against globalization.
"The decision of the Pudussery Panchayat would not stand legal scrutiny as the Pepsi plant
had obtained a license through the single window clearance mechanism under the Industrial
Development Area Act, 1999 introduced when the same Marxists were in power," said Abdul
Rehman, Managing Director, Western India Kinfra Industrial Estate.
"The Plachimada unit of Coca Cola is a typical case of footloose capital bent on exploiting
the natural resources till the last and then packing off from the scene," says Dr. RVG Menon,
former president of Kerala Sastra Sahitya Parishad (KSSP), the People's Science Movement.
"However hasty and motivated by short-term political considerations and rivalries, the
Perumatty Panchayat's decision is a landmark in the people's struggle for rights over their
natural resources," says Sunderarajan. He feels that if not for the local resentment, at least on
account of the drastic depletion of water resources in the area, the Coca Cola company will
shut down the plant soon and move to greener pastures. The company has already been
forced to cut down the number of casual workers at the plant and reduce production on
account of being forced to bring water from outside.
It remains to be seen who the Kerala Government will stand by -- whether the local self-
government or the MNC.

INTRODUCTION
Water has emerged as one of the primary environmental concerns for the 21st century. Many parts of
the world are currently facing water shortages, while others must contend with severe water pollution.
The consequences are bleak: social, economic and political instability leading, in the worst case
scenario, to violence over dwindling water resources. Immediate action is needed to stall the
emerging crisis and to begin reversing many of the trends we have set over time.

A number of organizations around the world are working towards resolving these issues. It becomes
apparent, though, that there are no easy solutions. Since water flows irrespective of political and even
cultural borders, cooperation amongst the various stakeholders must become an essential part of the
global effort.

Communication is key. While the larger initiatives on the part of governments and prominent
international organizations have been well documented, there is little information regarding the efforts
of smaller, more local projects in sustainable water management.

CRITICAL CHARACTERISTICS OF
WATER
• Water is a renewable resource fulfilling multiple functions
Water is a renewable resource that fulfils multiple functions. Yet we often use it non-renewably, and
we treat its many functions in isolated and singular fashion. In contrast to the fragmented sectoral and
administrative structures and jurisdictions that characterize society, water flows through the landscape
where it 'lubricates' both the natural and social components of the Earth. Through this flow, and
through the manipulation of it, the basic needs and wants of people are possible to satisfy. Water's
vital role for the environment and humans is linked to five main functions (Falkenmark and Lundqvist,
1995):
1. maintaining human health : clean water is essential for maintaining human health;
2. maintaining environmental health: the health of aquatic ecosystems is essential for
fish/seafood supply, is a major determinant of biodiversity, and provides for many other vital
goods and services;
3. supporting two production functions : a) biomass production, necessary for the supply of food,
fuel wood and timber; and b) economic production, since industrial development has
traditionally been "lubricated" by easy access to water;
4. supporting two carrier functions : a) water plays an active role in diluting and transpiration
wastes; and b) in the natural erosion and land processes of the global water cycle;
5. Psychological function, which makes water bodies, water views, fountains and so on
fundamental components of human preferences and desires. Water also plays a role in many
religions and cultural activities.
• Regional, local and global water imbalances: the issue of scale
There is no such thing as a global water problem - all problems manifest themselves at smaller
scales. For example, at the global average level, there is sufficient water to meet the needs and wants
of every human being. At the continental level, per capita water availability still seems more than
adequate, though large regional disparities appear. In Europe, each million cubic meters of water
available per year is "shared" by over 150 people, on average, while in South America only 25 people
must share that much water. Comparisons with Asia show even more extreme differences The figures
are, however, elusive in terms of real problems in various continents. The situation in Africa, for
instance, is significantly different from the situation in Europe although availability figures are at the
same level.

Growing scarcity at the regional and local levels indicates imbalances between overall availability and
growth in need and demands. These imbalances will have implications far outside the areas under
stress. An important example is the issue of food production. If more and more countries do not have
sufficient amounts of water to grow the food that they need, the deficit must be covered from
somewhere else. And there must be arrangements, agreements and institutions capable of (i) creating
a surplus large enough to cover the growing regional and local deficits, (ii) providing logistical capacity
and procedures for the actual transfer of food and other essentials from surplus to deficit regions,
including the poor, and (iii) guaranteeing a political commitment to transfer food to deficit areas and
the poor, even if people in these areas do not have the means to provide their own supply.
• Make water a "first thing" in development strategies
Water resources must now be recognized as a major determining factor for socio-economic
development (UNCNR, 1996). During the period when human demands on water were low and when
hydrological cycle behavior and the climate were thought to be fairly predictable, water was the last
thing to be considered in the development decision-making process, if it was considered at all. In the
past hydrologists and water managers tended to concentrate on gathering scientific knowledge about
the hydrological cycle, paying little attention to socio-economic and environmental values, to the point
that most development activities naturally assumed that there would always be water available for
projects

Today, due to the increasing pressures on water resources and the recognised variability of the
hydrological cycle and the climate, the position of water in the decision-making process has been
completely reversed (G. Matthews, personal communication). Now, water must become the one of the
first things to be considered in the context of development and security objectives, including the day-
to-day management of water allocation for socio-economic activities and the preservation of natural
resource capital. It is now imperative that decision-makers in all sectors, and particularly those
responsible for socio-economic planning, financial analysis and security, make development decisions
with explicit attention to water resources.

It is now imperative that decision-makers in all sectors, and particularly those responsible for socio-
economic planning, financial analysis and security, make development decisions with explicit
attention to water resources

SOURCES OF WATER DEPLETION

Industrial waste is a type of waste produced by industrial activity, such as that of factories,
mills and mines. It has existed since the outset of the industrial revolution.[1]

Much industrial waste is neither hazardous nor toxic, such as waste fiber produced by
agriculture and logging.[2]
Toxic waste, chemical waste, Industrial solid waste and Municipal solid waste are
designations of industrial waste. Sewage treatment can be used to clean water tainted with
industrial waste.
Penalties and fees are created as enforcement actions and to ensure that violating conditions
are corrected in a timely manner to ensure consistent treatment of industrial dischargers; to
eliminate economic advantages for violations; and to ensure that states recover expenses
attributable to violations
Sewage is water-carried wastes, in either solution or suspension, that flow away from a
community. Also known as wastewater flows, sewage is the used water supply of the
community. It is more than 99.9% pure water and is characterized by its volume or rate of
flow, its physical condition, its chemical constituents, and the bacteriological organisms that
it contains. Depending on their origin, wastewater can be classed as sanitary, commercial,
industrial,agricultural or surface runoff.
The spent water from residences and institutions, carrying body wastes, washing water, food
preparation wastes, laundry wastes, and other waste products of normal living, are classed as
domestic or sanitary sewage. Liquid-carried wastes from stores and service establishments
serving the immediate community, termed commercial wastes, are included in the sanitary or
domestic sewage category if their characteristics are similar to household flows. Wastes that
result from an industrial process or the production or manufacture of goods are classed as
industrial wastes. Their flows and strengths are usually more varied, intense, and
concentrated than those of sanitary sewage. Surface runoff, also known as storm flow or
overland flow, is that portion of precipitation that runs rapidly over the ground surface to a
defined channel. Precipitation absorbs gases and particulates from the atmosphere, dissolves
and leaches materials from vegetation and soil, suspends matter from the land, washes spills
and debris from urban streets and highways, and carries all these pollutants as wastes in its
flow to a collection point.
An oil spill is the release of a liquid petroleum hydrocarbon into the environment due to
human activity, and is a form of pollution. The term often refers to marine oil spills, where oil
is released into the ocean or coastal waters. The oil may be a variety of materials, including
crude oil, refined petroleum products (such as gasoline or diesel fuel) or by-products, ships'
bunkers, oily refuse or oil mixed in waste. Spills take months or even years to clean up.
Oil is also released into the environment from natural geologic seeps on the sea floor.[1] Most
human-made oil pollution comes from land-based activity, but public attention and regulation
has tended to focus most sharply on seagoing oil tankers.