he Tamil Nadu government has cancelled the plots allotted to Coca-Cola’s proposed beverages manufacturing facility in the SIPCOT Industrial Growth Centre in Perundurai after the company said it was not in a position to invest due to “unforeseen pressures” and “delays”.
On April 20, SIPCOT Managing Director R. Selvaraj issued the cancellation order of 71.34 acres allotted to it for non-compliance of the terms and conditions of allotment order/ lease deed. In a communication to Hindustan Coca-Cola Beverages (HCCB) Private Limited, Mr. Selvaraj merely said the plots allotted had been cancelled.
In a show-cause notice issued a week earlier, the SIPCOT management had asked the HCCB why it had not commenced construction of the bottling plant even after a year after land was allotted. As per SIPCOT norms, a company allotted land has to start construction within six months of the date of allotment of land and production in 30 months.
The company sent a mail to the Industries Secretary on Monday stating that the project was not feasible and the deal was cancelled late on Monday night, said SIPCOT sources.
The company’s exit comes in the wake of vehement opposition to its plant from the locals. Reflecting on the development, K.V. Ponnaiyan, president of Tamil Nadu Swadeshi Farmers' Association, who coordinated public protests in Chennimalai area, termed it a victory for people.
Meanwhile, HCCBPL, in a statement, said the inordinate delays, coupled with local activism against the project, could not have been foreseen.
The proposed plant involving an investment of Rs 500 crore needed four types of approval/permission, including water supply, effluent transfer lines without which the company was unable to apply for Consent to Establish.
Though many reminders were sent to SIPCOT, the inordinate delays coupled with local activism could not be prevented, the company release said.
Despite best efforts to address concerns, construction could not be commenced, the company said and asked the State government to refund entire money paid so far.
As per the lease deed registered, the company has paid development charges of Rs. 25 lakh per acre for the 71.34 acres and a lease amount of Rs. 1 per acre for 99 years.
