THIS is with reference to the article "Bottling livelihoods (June 2). As a concerned party, we [Coca Cola] feel that the premise of the story is flawed and biased. We would like to point out some of the inaccuracies in the article.
The article says our daily water withdrawal amount is 500,000 litres. Our average daily extraction is only 170 kilolitres and not 500 kilolitres. The Pollution Control Board collects cess on the basis of water consumption; hence this could be verified. We actively pursue water conservation techniques, both inside and outside the plants within communities. We have established two RWH [rain water harvesting] projects in local communities at Jagatpura College and the district office. Two more projects in the block office got launched on World Environment Day this year, while seven others are in the pipeline.
The story describes the rise in water table as a "Coca-Cola's assertion". The data is made available by the State Ground Water Board of Uttar Pradesh and is not the company's assertion. The report of State Ground Water Board for Varanasi division, which also includes Raja Talab for the last 10 years, testifies to this.
The article says: "Six Years into the battle between Coca-Cola and the residents of Mehandiganj and the surrounding villages... ". This agitation has been led by a local non-governmental organisation (NGO), which is biased and does not enjoy mass support or any local support. We have detailed documentary evidence in this regard.
We actively partner with communities and have the support of the village residents. Some of the projects undertaken with the community, in partnership with other stake holders, are as follows:
(i) Noted environmentalist of Varanasi, Prof. Vir Bhadra Mishra, who also manages Sankat Mochan Foundation, inaugurated one of our environment projects. (ii) Ganga Sewa Nidhi, a respected NGO, was our partner in our projects at the Ganga Ghat. (iii) The Environment Minister of Uttar Pradesh recently launched five RWH projects in Lucknow and appreciated the company's efforts in water conservation. (iv) Several government bodies and departments of local administration have partnered with us in promoting rain water harvesting, installing rain water harvesting systems and doing other community work. For instance, we have partnered with the Jagatpura Degree College, the block office, district office, Central Jail, and local panchayats for water conservation projects. (v) The Red Cross in the past has helped us to organise health camps and in disaster relief work.
Almost 90 per cent of the permanent workforce and 100 per cent of the contract labour force is local. We employ over 500 workers, both permanent and on contract. The company was conferred the `Best Organisation Award' for its employment practices by the Uttar Pradesh government in 2005. This award reiterates that we continue to have good labour and employment practices. Less than a month ago, there were newspaper reports of a large gathering of local women who were protesting against the agitation of `Lok Samiti'.
The story says that despite drawing nearly 13 million litres of water, the bottling plant paid a water cess ranging from three to 30 paisa a thousand litres, depending on usage. The product, by contrast, was sold for Rs.10.
The fact is, water drawn has substantially come down in 2006 because of efficient Water Resource Management (WRM) practices. We have reduced our water use ratio by over 25 per cent in the past four years. Fact 2: The price of the 300 ml glass bottle in the past three years has never been Rs.10. The current price of a 300 ml glass bottle is Rs.9 and the biggest volume driver is the 200 ml bottle priced at Rs.7. Prices have remained in the range of Rs.7 to Rs.9 and have either declined or remained stable over the past five years, despite severe increase in the raw material price. The correspondent is perhaps not aware that in the last seven years, the price of the product has not seen an increase despite rising costs of freight, sugar and packaging.
The correspondent has quoted several reports on pollution issues. We follow the guidelines of the Uttar Pradesh State Pollution Control Board (UPSPCB). In fact, our sludge has been categorised as non-hazardous by the UPSPCB and regular analysis of samples done at laboratories approved by the Ministry of Environment and Forests vindicates the classification. In addition, the bottling unit is regularly inspected for compliance by the UPSPCB.
The article says: "In 2002-2003, construction work of a national highway... providing toxic sludge from their factory as `free fertilizer' for the regions' farmers, which activists say, has destroyed entire fields."
The Sub-Divisional Magistrate (Finance), Varanasi, on the instruction of the District Magistrate had carried out an independent inquiry and found no merit in the allegations.
Deepak Jolly Vice-president Public Affairs and Communications Coca Cola
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