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Water Privatization Plachimada, India Presented By Gerardo Marenco

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Presentation on theme: "Water Privatization Plachimada, India Presented By Gerardo Marenco"— Presentation transcript:

1 Water Privatization Plachimada, India Presented By Gerardo Marenco
Yvette Becerra Sadam Olema

2 Privatization dates back to 1991 in India.
History Privatization dates back to 1991 in India. The country opened up its economy to the mounding pressures of globalization back in In doing so, the market commodified several assets, such as land and water. Huge agricultural tracts turned to mono-cultures, and companies came in looking for cheap sources of water -- such as the textile industry.

3 Demand Currently 30% of the rural population lack access to drinking water, and of the 35 states in India, only 7 have full availability of drinking water for rural inhabitants. In 2006 between the domestic, agricultural, and industrial sectors, India used approximately 829 billion cubic meters of water every year, which is approximately the size of Lake Erie. By 2050 demand is expected to double and consequently exceed the 1.4 trillion cubic meters of supply. According to the world bank, India’s agricultural sector currently uses about 90% of total water resources. The demand from urban and rural populations comprises about 4-6% of total water demand. Of which groundwater has become a major source of drinking water for both urban and rural indians -- which becomes pivotal when industries intrude on groudwater resources. Extra: The urban population has doubled over the past 30 years, now representing 30% of India’s total population[6] and is expected to reach 50% of the total population by 2020

4 Article 13 Water privatization has been recommended by the Indian Government’s national water policy to address the issue of water scarcity. In its article 13 titled, “Private sector participation” the policy says that “private sector participation should be encouraged in planning, development and management of water resources projects for diverse uses, wherever feasible”. This has placed water privatization at the forefront of developmental policies implemented by several state governments

5 Coca Cola in Plachimada
Long before the coca cola company was contracted and established at Plachimada village of Kerala state it had already existed in other states of India Coke company was licensed in the year 1999 by the village council of plachimada. The coke company was permitted to officially start their production in the year 2000

6 Water Sources used by Coca Cola
The main source of clean water in the region has being water from the underground aquifers and so when the company was established, they were allowed to draw water from open wells and bore holes. The company was allowed to draw 510,000 liters of water from the open wells and boreholes per day In their production, they illegally drew an extra 1 million liters of water for its production every day. More so, for every 1 litre of product produced there were 2.75 litres of waste.

7 First Signs of Pollution
Just after 6 month of production in the year 2000, the villagers began to see some small changes in their water quality and level. These changes include; Change in water color, Change in the taste, and reduction in water level etc. source; Krista Bywater, Anti-privatization struggle and right to water in India.

8 Protest Against Coke After two years of production protest by the locals (mostly women) were common Reasons for their protests and complaints were; → wells were drying up as a result of overexploitation → Poor Water quality due to pollution → Women traveled longer distances to retrieve water → Drying of crop yields - The locals complaint of their water sources being polluted, the wells and bore holes drying up causing water scarcity in the area. -

9 Waste Generated Sludge which also contained pesticides like DDT
Effluent rich in metals like cadmium lead Chromium copper Carcinogen known as Lindane Source: Source: Association for India's Development 2007

10 Effects on Community Air pollution due to release of toxic gases like carbon dioxide, carbon monoxide, etc Waterborne Illnesses broke out → Affected reduction in the birth weight of the children Period/ year % Under 5.5 Pounds % Greater than 5.5 lbs Total 15.1 84.9 100 31.1 68.9 21.2 78.8

11 Kerala Bans Coke Products
Studies conducted by the Center for the Environment concluded that dangerous amounts of pesticides were found in coke products → The Kerala State Pollution Control Board banned the sales of the company’s products in the state. In August of 2006, the Kerala State Pollution Control Board (KSPCB) ordered coke to stop production due to failure to observe pollution limits → Under section 24 of the Water Act “no person shall knowingly cause/permit discharge of poisonous substances exceeding set standards to enter into any well or land” Source:

12 Anti Coca-Cola Struggle Committee & Plachimada Solidarity Committee
The committee’s continuously protested outside the gates of Coca Cola and in 2002 had a permanent sit down to demand their dismissal. They protested until the company was revoked and denied a license for renewal in Notes: -Due to protests and complaints the these organizations were formed Source: Source: Corp Watch 2003

13 Killer Coke An international organization tracking the coca cola on a global scale They report: violence and abuse of workers and union protesters Ecological impacts of overexploitation of resources Contamination and depletion of water sources Provide a resource where countries can unite grassroots organizations Report of similar events in many under developed countries -company comes in and takes over resources with little to no regulation “The International Environmental Law Research Centre issued a report in 2007 that stated, in part, "The deterioration of groundwater in quality and quantity and the consequential public health problems and the destruction of the agricultural economy are the main problems identified in Plachimada. The activity of The Coca Cola Company has caused or contributed a great deal to these problems”... Source: Source: Killer Coke

14 Case Law In December 2003 the High Court of Kerala state, considered two issues: 1) The overexploitation of the groundwater. 2) The justification of the local village council decision to revoke the license. In 2005, the High Court of Kerala renewed Coca Cola’s license to continue operation and allowed the company to withdraw 500,000 liters of Notes: The High Court decided that Coca-Cola could extract the groundwater since there is no law regulating groundwater extraction for such purpose in India. -Coca Cola rejected the license, believed that it was in violation of the High Courts order. (Specifcs were not mentioned in source) Source: Source: Environment News Service 2005

15 Case Law Continued. . . The court also ordered the Village Council to renew the license and not interfere with the operation of the company. The village Council appealed this decision to the Indian Supreme Court → The Supreme Court ordered for the immediate renewal of operating license Riots broke out and 500 protesters were arrested -Same year May, the village council filed a special petition in the Indian supreme court. -The company accused the village council to the court for not renewing their license and the court ordered them to renew it within 7 days

16 Overview of Coca Cola Operations
The High Power Committee was established to assess the damages brought on by coca cola Coca Cola guilty of violating: Prevention and Control of Pollution (Water) Act of 1974 The Environment Act of The Factories Act of 1948 The Indian Easement Act of The Hazardous Waste Rules of 1989 The Indian Penal Code The Prevention & Atrocities Act of 1989 The Land Utilization Order The Kerala Groundwater Act 2002 Source: Source: India Resource 2010

17 Future Outlook Compensation Covers:
→ Agriculture loss → Health damages → Cost for providing clean water → Cost of polluting water resources & environment The Coca Cola plant in Plachimada was held liable for $48 Million in compensation to the local villages Source: After Several reports analyzing the damages the Coca Cola plant in Plachimada was held liable for $48 Million in compensation to the local villages Source: India Resource Center 2010

18 Works Cited Killer Coke Retrieved From: Environmental News Service. (June 2005). 500 Anti-Coca-Cola Demonstrators Arrested in India. Retrieved From: Srivastava. A. (10 July 2003). Communities Reject Coca-Cola in India. Corp Watch. Retrieved From: Surendranath. C (10 July 2003). . Coca-Cola: Continuing the Battle in Kerala. Corp Watch. Retrieved From: India Resource Center. (2010). Recommendations of High Power Committee. Retrived From: Association for India’s Development. (2007). Retrieved From: Bishnupriya Ghosh. c(2010). Looking through coca cola. retrieved from; Modus Operandi. (august 2007). water; the coca cola company in Kerala. retrieve from; Anna Karthica. (22 july 2008) Bottling up a corperate Giant; victory of mass movement. retrieved from

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