In a setback to soft drink major Coca Cola, an experts panel set up by Kerala Government today suggested legal steps to realise Rs216.26 crore as compensation from it for the "multi-sectoral" loss caused by its plant at Plachimada in Palakkad district.
The 14-member Committee, headed by additional chief secretary K Jayakumar, also recommended setting up of a tribunal to take the legal process forward since it would not be possible to the affected people to individually fight the legal battle.
The panel report, handed over to state water resources minister NK Premachandran here, held that besides heavy withdrawal of ground water, the Hindustan Coca Cola Beverages Ltd plant had inflicted harm to the farming and environment in the area by dumping solid waste.
It quantified the damage suffered by various sectors due to the functioning of the plant from 1999 to 2004 as agricultural loss (Rs84.16 crore), pollution of water resources (Rs 62 crore), cost of providing water (Rs 20 crore), health damage (Rs30 crore), wage loss and opportunity cost (Rs20 crore).
Receiving the report, the minister said it would be placed before the state cabinet to take appropriate steps.
The LDF Government had set up the high-level panel to assess the "socio-economic damage" allegedly caused by "exploitation" of ground water by the plant. The report incidentally came on a day which is being observed as 'World Water Day'.
Panel chairman Jayakumar said the "dedicated" legal mechanism to fight for compensation could be created by the state government itself either by setting up a tribunal or asking the Centre to create such a mechanism under the Environment Act.
"Once the government decides on a suitable mechanism and it comes into being, individual claims will have to be assessed and actual compensation decreed and the polluter company made to pay it," the report said.
It reported the precedent of Tamil Nadu setting up a tribunal to address the pollution caused by tanneries.
The chairman noted that Coca Cola declined to co-operate with the study by writing that the government had no power to do such an exercise. "We just ignored the contention of the company and went ahead with our task," he said.
The report said the company was culpable under several laws.
By passing sludge as manure, which had contents of cadmium, led and chromium, the company had not only misguided farmers, but has become responsible for soil degradation, water contamination and consequential loss of agriculture.
Besides a steady decline in agriculture in the area dominated by weaker sections and tribals, production of milk, meat and eggs had also suffered, it said.
The general health of the people had been affected with skin ailments, breathing problems and other debilities.
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