The Hindu : Coke threatens to close down Plachimada unit

Online edition of India's National Newspaper
Sunday, Mar 14, 2004

Kerala

Kerala

Coke threatens to close down Plachimada unit

By Our Staff Reporter

PALAKKAD, MARCH 13. The Hindustan Coca-Cola Beverages Private Limited in its notice of temporary suspension of operations issued on Friday said the company would be "left with no option but to close down its factory at Plachimada in the long run.'' The notice sent to the State Government and 20 departments concerned as well as to the Employees Association said that the company "is temporarily suspending its operations at its factory, as the strict adherence of orders passed by the High Court makes it impossible for it to carry on its day to day function.''

While stating the circumstances in detail of its possible closure, the notice said under the circumstance of "continuing motivated agitations, attacks and threats to its vehicles and property coupled with the fact that no protection is being granted by the State, the company would be left with no option but to close down its unit at Plachimada. The company was functioning without any problem whatsoever till April 2003. However, suddenly on April 7, 2003, the Perumatty panchayat passed a resolution resolving not to renew the licence of the company based on the alleged depletion of groundwater and consequent drought in the nearby areas of the plant.''

The State Government passed an order on February 21, 2004 directing that the company be stopped from taking groundwater till `edavappathi' as a measure of drought relief decision, the notice said.

"This order was issued solely to our company despite the fact that there was no scientific material to support the same. In fact, about 27 factories operating in this district have been using groundwater and there has been no attempt by the Government to devise an equitable non-discriminatory scheme for drawing ground water and its period and timing. ... . Thus the company has been discriminated against in as much as no action has been taken against other similarly situated companies in Palakkad district,'' the notice says.

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