Coke rejects Kerala panel order for damages

Coca Cola has rejected the report saying that it is unfortunate that the committee in Kerala was appointed on the unproven assumption that damage was caused and that it was caused by Hindustan Coca-Cola Beverages, it said in a statement.

The report handed over to Water Resources Minister N K Premachandran held that besides heavy withdrawal of ground water,the Hindustan Coca Cola Beverages Ltd plant had inflicted harm to farming and environment in the area by dumping solid waste.

It quantified the damage suffered by various sectors due to the functioning of the plant from 1999 to 2004 as agricultural loss Rs 84.16 crore,pollution of water resources Rs 62 crore,cost of providing water Rs 20 crore,health damage Rs 30 crore,wage loss and opportunity cost Rs 20 crore.

The plant had been non-operational since 2004 as it faced legal hurdles from the local Perumatty panchayat.

Receiving the report,the minister said it would be placed before the state cabinet to take appropriate steps.

The LDF government had set up the high-level panel in April 2009 to assess the socio-economic damage allegedly caused by exploitation of ground water by the plant. The report incidentally came on a day which is being observed as World Water Day.

Panel chairman Jayakumar said the dedicated legal mechanism to fight for compensation could be created by the state government either by setting up a tribunal or asking the Centre to create such a mechanism under the Environment Act.