Pepsi, Coke allowed to draw water from river

Global soft drink manufacturers PepsiCo and Coca-cola received a shot in the arm, just a day after traders in Tamil Nadu called for withdrawing their aerated drinks from the shelves, with the Madras High Court (Madurai Bench) refusing to disrupt supply of water to industries set up co-packers of the two MNCs. The court threw out two public interest litigation petitions questioning why the litigants had targeted only the cola majors and not opposed supply of water to other industries in the region.

The Public Interest Litigations were filed in the Madras High Court (Madurai Bench) challenging the supply of surface water to the industries set up by the soft drink majors at the Industrial Growth Centre in Gangaikondam in Tirunelveli district. “Why are you not attacking other industries? Why have you adopted a pick and choose method,” a bench of Justices A Selvam and P Kalaiyarasan asked while dismissing the PILs and vacating an

The Public Interest Litigations were filed in the Madras High Court (Madurai Bench) challenging the supply of surface water to the industries set up by the soft drink majors at the Industrial Growth Centre in Gangaikondam in Tirunelveli district.

interim injunction granted in November last restraining the State Industries Promotion Council of Tamil Nadu (SIPCOT) from supplying water to the two plants.

The petitioners had complained that the two units were being supplied water at a “throwaway price” by SIPCOT from the Thamirabarani River which led to exploitation of water resources.

Prathishta Business Solutions and South India Bottling Company, which were manufacturing aerated drinks on behalf of the two MNCs, and SIPCOT denied the charge. They submitted that in May 1998 a Government Order was issued permitting the industries to draw surface water at the rate of three million gallons per day (MGR) from the River. Presently only 0.5 MGD was being drawn by the two plants.

Besides, the river water was not being supplied at “throwaway price”. It was being supplied at commercial rate of Rs 37.50 for every thousand litres.

Accepting the contentions, the court dismissed the two PILs.