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April 14, 1999

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Goa pollution board probes Coca-Cola's alleged production without clearance

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Sandesh Prabhudesai in Panaji

Coca-Cola's plant in Goa, which is waiting to be fully operational, has sparked a controversy.

There are allegations that the plant has started production without fulfilling conditions of the Goa State Pollution Control Board.

Coca-Cola officials refused to react but admitted the fact that the production has started. "It is a trial production," one official said. He said the pollution board officials have visited the plant.

Chief Secretary Seva Ram Sharma, who is now the chairman of the Goa State Pollution Control Board, also refused to divulge any information. All he said was that the decision on granting environmental clearance has been deferred.

The Rs 300 million plant of Hindustan Coca-Cola Bottling South West Private Limited, situated on a 25-acre plot at the Verna Electronic City, has completed its construction in record time so that it could make the most of the summer.

However, it is learnt that the multinational has started production under the pretext of trial production and even paid the excise duty for taking out the bottles in the market even before it obtained the environmental clearance from the GSPCB.

Coca-Cola had sent its proposal for seeking clearance for the use of treated effluent, half of which has to be used for re-circulation within the factory premises for cooling and the rest for gardening.

The plant has been permitted to utilise 3.2 million litres of water per day.

The GSPCB met last week under the chairmanship of the chief secretary and decided to re-inspect the plant, following reports that the production was started without environmental clearance. "We have deferred the decision," admits Sharma, but refuses to tell why.

The company is also unable to utilise the filtered water supplied by state PWD as it affects all the other existing multinational electronic and pharmaceutical units at Verna. The soft drink maker is now reportedly getting water from an open well, which is then filtered in the plant.

A team from the pollution board inspected the Coke unit this morning, and is expected to submit its report by Friday, in time for the board meeting.

The issue may however take a serious turn if the company is actually found to have started commercial production without seeking the consent, according to sources in the board.

Coca-Cola was earlier embroiled in another controversy in Goa. Some 175 local bottlers had demanded that the company be disallowed as it threatens to drive them out of business. Coca-Cola was granted several concessions including sales tax exemption for 12 years, which could help to sell its products at lower prices.

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