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Coca-Cola Asked to Explain Why Land Allotment for New Plant Should Not Be Cancelled
 
R Balaji
Business Line
April 20, 2015

The proposed Rs. 500 crore project ran into controversy and public protest over the environmental concerns such as ground water exploitation.

Chennai: The Tamil Nadu Industries Department has issued a show-cause notice to Coca-Cola for why it should not cancel the land allocated for its bottling plant, according to reliable sources.

The State Industries Promotion Corporation of Tamil Nadu, the public sector industry facilitation agency that handles land allocation for industrial projects, had allocated over 71 acres to Hindustan Coca Cola Beverages to set up a bottling plant at Perundurai, Erode District.

However, the proposed Rs. 500 crore project ran into controversy and public protest over the environmental concerns such as ground water exploitation.

The source said that SIPCOT has issued show-cause notice to the company as there has not been any progress in the project. Normally, investors are expected to conform to specific milestones and show progress in project implementation.

Work on the project has to start within six months of land allocation. But there has been no progress in the project though SIPCOT had allotted land over a year back.

In the recently concluded state budget discussion in the Assembly, the opposition parties had brought up the issue.

The State Government had then clarified that the project has not yet come up for environmental clearance and that it would not allow any project that goes against public interest.

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