In a progressive development, the Madras High Court has ordered that water the from Thamirabarani river in Tamil Nadu must not be diverted to Coca-Cola and Pepsi producing plants in Gangaikondan due to the severe water shortages in the area.
The Madras High Court passed the interim injunction disallowing river water to the bottling plants for two months on November 21, 2016. The order was obtained by India Resource Center this week.
It is the duty of the State as well as this Court to ensure the livelihood and the welfare of the general public, by making these natural resources available to them, instead of diverting the same for commercial purposeMadras High Court order
The court order came as the result of a public interest litigation filed by FEDCOT, a statewide consumer organization, which had sought to stop the use of river water for production of Coca-Cola and Pepsi product because water scarcity has diminished both drinking water as well as water for irrigation in the area.
Acknowledging the ongoing water crisis and taking note of a decision made by the Indian Supreme Court, the Madras High Court in its November 21, 2016 order noted that, “It is the duty of the State as well as this Court to ensure the livelihood and the welfare of the general public, by making these natural resources available to them, instead of diverting the same for commercial purpose.”
The High Court order is a major setback for Coca-Cola and PepsiCo in India and signals the emergence of new challenges the companies will face even when using surface water.
So far, both Coca-Cola and PepsiCo have faced significant setbacks for using groundwater, including plant closures, denial of licenses for operating new plants, restrictions on the amount of groundwater used, and more stringent regulations on groundwater usage.
As a result of the widespread campaigns against Coca-Cola and PepsiCo for their mismanagement of groundwater resources, both companies planned to increase reliance on surface water for their bottling plants.
In April 2015, Coca-Cola’s plans to set up a new bottling plant in Erode using water from river Cauvery was also rejected by the state government due to immense community opposition.
The Coca-Cola and PepsiCo producing bottling plants that have been denied river water in Gangaikondan are operated by co-packers for Coca-Cola and PepsiCo, and the co-packers have entered into contracts to manufacture the respective companies’ products exclusively.
Dr D A Prabakar, Chairman of FEDCOT who has led the legal efforts, was pleased with the interim injunction although he also expected a legal challenge by the soft drink producers in the Supreme Court. FEDCOT has also plans to create public awareness among the banks of river Thamirabarani.