Plachimada and New York (April 8, 2005): In a surprising move, a division bench of the High Court of Kerala has permitted Coca-Cola to extract up to 500,000 liters of water from the common groundwater resource per day at its Plachimada facility, in southern India. The bottling plant remains shut down for over a year now due to intense community pressure.
The Perumatty village council (panchayat), which had refused to renew Coca-Cola's license to operate citing it for over-extraction of water, has been given 15 days to reconsider its decision, and Coca-Cola is expected to file for a renewal of the license to the Perumatty panchayat in the next few days.
The High Court ruling is expected to be appealed to the Supreme Court, and it seems unlikely that Coca-Cola can reopen its plant at Plachimada in the near future.
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