Water Privatization Plachimada, India

Presented ByGerardo Marenco

Yvette Becerra Sadam Olema

History

Privatization dates back to 1991 in India.

Demand Currently 30% of the rural population lack access to drinking water, and of the 35 states in India, only 7 have full availability

of drinking water for rural inhabitants.

In 2006 between the domestic, agricultural, and industrial sectors, India used approximately 829 billion cubic meters of

water every year, which is approximately the size of Lake Erie. By 2050 demand is expected to double and consequently

exceed the 1.4 trillion cubic meters of supply.

Article 13

Water privatization has been recommended by the Indian

Government’s national water policy to address the issue of water scarcity.

Coca Cola in Plachimada ● Long before the coca cola company was contracted and

established at Plachimada village of Kerala state it had already existed in other states of India

● Coke company was licensed in the year 1999 by the village council of plachimada.

● The coke company was permitted to officially start their production in the year 2000

Water Sources used by Coca Cola

The main source of clean water in the region has being water from the underground aquifers and so when the company was established, they were allowed to draw water from open wells and bore holes.The company was allowed to draw 510,000 liters of water from the open wells and boreholes per day

First Signs of Pollution

Just after 6 month of production in the year 2000, the villagers began to see some small changes in their water quality and level.These changes include;❖Change in water color,❖Change in the taste, and reduction in water level etc.

Protest Against Coke • After two years of production protest

by the locals (mostly women) were common

• Reasons for their protests and complaints were;

→ wells were drying up as a result of overexploitation

→ Poor Water quality due to pollution

→ Women traveled longer distances to retrieve water

→ Drying of crop yields

Waste Generated• Sludge which also contained

pesticides like DDT• Effluent rich in metals like• cadmium• lead• Chromium• copper • Carcinogen known as

LindaneSource: Association for India's Development 2007

Effects on Community

Period/ year % Under 5.5 Pounds % Greater than 5.5 lbs Total

1996-2000 15.1 84.9 100

2001-2003 31.1 68.9 100

Total 21.2 78.8 100

• Air pollution due to release of toxic gases like carbon dioxide, carbon monoxide, etc

• Waterborne Illnesses broke out → Affected reduction in the birth weight of the children

Kerala Bans Coke Products Studies conducted by the Center for the Environment concluded that dangerous amounts of pesticides were found in coke products

→ The Kerala State Pollution Control Board banned the sales of the company’s products in the state.

• In August of 2006, the Kerala State Pollution Control Board (KSPCB) ordered coke to stop production due to failure to observe pollution limits

→ Under section 24 of the Water Act

“no person shall knowingly cause/permit discharge of poisonous substances exceeding set standards to enter into any well or land”

Anti Coca-Cola Struggle Committee & Plachimada Solidarity Committee

+ The committee’s continuously protested outside the gates of Coca Cola and in 2002 had a permanent sit down to demand their dismissal.

+ They protested until the company was revoked and denied a license for renewal in 2004.

Source: Corp Watch 2003

Killer Coke+ An international organization

tracking the coca cola on a global scale

+ They report:violence and abuse of workers and union protesters Ecological impacts of overexploitation of resources Contamination and depletion of water sources Provide a resource where countries can unite grassroots organizations

Source: Killer Coke

Case Law In December 2003 the High Court of Kerala state, considered two issues:

1) The overexploitation of the groundwater.2) The justification of the local village council decision to revoke the license.

In 2005, the High Court of Kerala renewed Coca Cola’s license to continue operation and allowed the company to withdraw 500,000 liters of

Source: Environment News Service 2005

Case Law Continued. . .

• The court also ordered the Village Council to renew the license and not interfere with the operation of the company.

• The village Council appealed this decision to the Indian Supreme Court

→ The Supreme Court ordered for the immediate renewal of operating license • Riots broke out and 500 protesters were arrested

Overview of Coca Cola Operations The High Power Committee was established to assess the damages

brought on by coca colaCoca Cola guilty of violating:

Prevention and Control of Pollution (Water) Act of 1974The Environment Act of 1986 The Factories Act of 1948The Indian Easement Act of 1882 The Hazardous Waste Rules of 1989The Indian Penal Code The Prevention & Atrocities Act of 1989The Land Utilization Order The Kerala Groundwater Act 2002

Source: India Resource 2010

Future Outlook

The Coca Cola plant in Plachimada was held liable for $48 Million in compensation to the local villages

Compensation Covers:→ Agriculture loss→ Health damages → Cost for providing clean water

→ Cost of polluting water resources & environment

Source: India Resource Center 2010

Works Cited Killer Coke. 2004. Retrieved From: http://killercoke.org/crimes_india.php

Environmental News Service. (June 2005). 500 Anti-Coca-Cola Demonstrators Arrested in India. Retrieved From: http://www.ens-newswire.com/ens/jun2005/2005-06-09-02.asp

Srivastava. A. (10 July 2003). Communities Reject Coca-Cola in India. Corp Watch. Retrieved From: http://www.corpwatch.org/article.php?id=7508

Surendranath. C (10 July 2003). . Coca-Cola: Continuing the Battle in Kerala. Corp Watch. Retrieved From: http://www.corpwatch.org/article.php?id=7528

India Resource Center. (2010). Recommendations of High Power Committee. Retrived From: http://www.indiaresource.org/campaigns/coke/2010/hpcrecommendations.html

Association for India’s Development. (2007). Retrieved From: http://kolkata.aidindia.org/newsletter Bishnupriya Ghosh. c(2010). Looking through coca cola. retrieved from; http://publicculture.dukejournals.org/content/22/2/333.full.pdf

Modus Operandi. (august 2007). water; the coca cola company in Kerala. retrieve from; http://www.openrim.org/IMG/pdf/Case_study_Coca_Cola.pd

Anna Karthica. (22 july 2008) Bottling up a corperate Giant; victory of mass movement. retrieved from http://www.ethicalquote.com/docs/BottlingUpaCorporateGiant.pdf