Last update:
2014-09-25

Coca Cola plant and Groundwater Exploitation, India

Description:

The Coca Cola company had in 1999 set up a bottling plant in the village of Mehdiganj, about 15 kms from Varanasi (the Holy City) in the State of Uttar Pradesh.

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Basic Data
Name of conflict:Coca Cola plant and Groundwater Exploitation, India
Country:India
State or province:Uttar Pradesh
(municipality or city/town)Mehdiganj Village
Accuracy of locationHIGH (Local level)
Source of Conflict
Type of conflict: 1st level:Water Management
Type of conflict: 2nd level :Water access rights and entitlements
Landfills, toxic waste treatment, uncontrolled dump sites
Specific commodities:Water
Project Details and Actors
Project details:

As per the statement of the Hindustan Coca Cola plant the company withdraws 50,000 Cubic metres per annum and it had applied for an increase in its allowed extraction to 250,000 Cubic metres per annum. [4]

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Project area:3
Level of Investment:25,000,000
Type of populationRural
Affected Population:10,000
Start of the conflict:01/01/1999
Company names or state enterprises:Hindustan Coca-Cola Beverages Pvt Ltd (HCCBPL) from United States of America
Relevant government actors:Central Groundwater Board (CGWB)

Central Pollution Control Board (CPCB)
Environmental justice organizations (and other supporters) and their websites, if available:Lok Samiti : Nagepur

PO Benipur, Dist. Varanasi, UP 221 307 E-mail: [email protected]
Conflict and Mobilization
IntensityMEDIUM (street protests, visible mobilization)
Reaction stageMobilization for reparations once impacts have been felt
Groups mobilizing:Farmers
Industrial workers
Local ejos
Forms of mobilization:Lawsuits, court cases, judicial activism
Official complaint letters and petitions
Public campaigns
Hunger strikes and self immolation
Boycotts of companies-products
Impacts of the project
Environmental ImpactsVisible: Soil contamination, Waste overflow, Groundwater pollution or depletion
Health ImpactsPotential: Other environmental related diseases
Socio-economical ImpactsVisible: Increase in Corruption/Co-optation of different actors, Violations of human rights
Outcome
Project StatusStopped
Conflict outcome / response:Project cancelled
Withdrawal of company/investment
Development of alternatives:Recognition of the villagers rights to make decisions on their water, a common property resource was the foremost demand of local ejos. Besides this they demanded compensation for crops lost due to land and water pollution and also payment of stamp duty that the company had so far avoided. There wasn't an alternative proposal for operation of the plant put in place by either party. [5]

[5]

http://www.ashanet.org/austin/mehdiganj/faq.html#q8
Do you consider this an environmental justice success? Was environmental justice served?:Yes
Briefly explain:The State Pollution Control Board shut down the plant in June of 2014 when it found the company to be operating in violation of several conditions on its license. It had also not been able to obtain a NOC from the Central Groundwater Board for expansion of its plant capacity, an appropriate outcome, given that the plant already exists in a water -stressed area. [6] Recently the Hindustan Coca Cola company announced that it had cancelled plans for expansion of its Mehdiganj plant. [7] It remains to be seen whether they will still operate in a smaller capacity or whether they will succeed in finding alternative locations in another part of the state.

[6]

http://www.indiaresource.org/news/2014/1027.html [7]

http://www.thehindu.com/business/Industry/coca-cola-cancels-expansion-of-varanasi-bottling-plant/article6350728.ece
Sources and Materials
LinksĀ to general newspaper articles, blogs or other websites

Coca Cola announces cancellation of plans for plant expansion
[click to view]

Article explaining roots of the conflict
[click to view]

Website for campaign against Coca Cola plant
[click to view]

[7] Coca Cola cancels expansion of Varanasi bottling plant
[click to view]

[6] Coca-Cola Forced to Abandon $25 Million Project in India
[click to view]

Media Clippings on the Mehdiganj - Coca Cola conflict
[click to view]

Related media links to videos, campaigns, social network

Some pictures of Mehdiganj and the vicinity of the Coca Cola plant
[click to view]

Other documents

Dharna against the Coca Cola Plant Source: http://rt.com/news/167012-coca-cola-factory-closed-india/
[click to view]

Coca Cola bottles stock Source: http://rt.com/news/167012-coca-cola-factory-closed-india/
[click to view]

Protest at Mehdiganj Source: http://www.asianews.it/news-en/Coca-Cola-plant-closed-down-in-Varanasi,-for-water-and-land-pollution-31379.html
[click to view]

Meta information
Contributor:Water Conflict Forum (India) [email protected]
Last update25/09/2014
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