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July 23, 1999

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Curtailed water supply makes Coke's future in Goa uncertain

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Sandesh Prabhudesai in Panaji

Uncertainty continues to shroud Coca-Cola bottling plant's future in Goa. The state industries minister, Churchill Alemao, seems determined to supply water to the soft drink multinational "as per the availability", in spite of opposition members thumping benches in the legislative assembly against his stand.

The Varca strongman (as Alemao is widely known here) has, however, decided not to disconnect water supply to the MNC plant. "I never disconnected it but curtailed due to non-availability of adequate water supply," he told the legislature, in what seemed a volte face on his earlier stand.

To justify his action, he points out at the agreement reached with the Hindustan Coca-Cola Bottling South West Private Limited to supply water as per the availability after fulfilling requirements of other units in the Verna Industrial Estate, provided there is no breakdown or restriction by the PWD.

"The company had ventured to set up the plant with a clear understanding that the Industrial Development Corporation may not be in a position to meet their entire demand of water," Alemao told the house, when opposition members condemned the government attitude to curtail water after production has begun.

Asking why only Coca-Cola is being hounded, former Union minister Ramakant Khalap brought to the notice of the house that the credibility of the government and the state is at stake due to Alemao’s action.

State opposition leader Manohar Parrikar of the Bharatiya Janata Party felt that no unit should be harassed after production begins. The BJP had earlier opposed the Coke plant as it would conquer market of over 100 small bottlers.

The opposition has demanded resignation of deputy speaker Alex Sequeira, who was the IDC chairman, for creating this blunder during his tenure earlier.

Speaker Pratapsing Rane, during whose chief ministerial tenure Coke was granted licence within a fortnight, wound up the debate by simply instructing Alemao to release water to Coke. Alemao declined to give any assurance in this regard. Even Chief Minister Luizinho Faleiro preferred to remained silent.

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