Soft drink giant Coca Cola suffered a setback on Tuesday with the Tamil Nadu Government cancelling its earlier order allocating 71 acres of land at Industrial Growth Centre in Erode district to the company.
State Industrial Promotion Corporation limited of Tamil Nadu (SIPCOT) had allocated 71 acres of land to Hindustan Coca Cola Beverages Private ltd in June 2013 to set up a Rs500 crore beverage manufacturing facility. There were a lot of public opposition to the proposed plant from local community as well as farmers.
Their main concern was the depletion of groundwater level in Erode once the plant becomes operational as well as the dumping of industrial waste by the company, which could pollute the environment. The experience of people in adjoining Kerala was highlighted by the agitators. There was widespread apprehension that the plant would pollute the River Bhavani.
R Selvaraj, managing director, SIPCOT, in a letter to the company on Monday said that order allocating 71 acres of land to the company has been cancelled for non-compliance of terms and conditions of the allotment order.
The controversy generated by the Coca Cola echoed in the Tamil Nadu Assembly also during the discussion on the State Budget. Chief Minister O Panneerselvam had told the Opposition early April that though land has been allocated to Coca Cola, no environment clearance has been issued to the company by the Government.
But Coca Cola company, said in a statement that the project got delayed due to unanticipated outside pressures. “In spite of repeated follow-ups the following approvals were awaited which include; the draft copy of water agreement, laying of water line from SIPCOT entrance to our allotted site, approval for laying effluent transfer line and laying of proposed land leading to a nearby temple. Without these we are unable to apply for Consent to Establish and start construction work on the site,” said the company’s release.
This is the second mega project which has come to a standstill in Tamil Nadu. The GAIl pipeline project has been put on hold following the AIADMK Government’s opposition . Thousands of farmers in the southern districts of Tamil Nadu had revolted against the pipeline project which they alleged took away their land by force. The cancellation of the Coca Cola plant comes at a time when the State government is busy preparing for a Global Investors Meet scheduled for September 2015 at Chennai.