Himachal villagers demand closure of Pepsi plant over groundwater law violations

New Delhi: Residents of Malot and Kandrori villages in Himachal Pradesh’s Kangra district have mounted a sustained protest against Varun Beverages Limited, the Pepsi bottling partner, alleging illegal exploitation of groundwater that threatens their water security and livelihoods.

The panchayats of both villages have passed resolutions demanding urgent action, with villagers saying the company’s operations are already reducing groundwater levels. In December 2023, Chief Minister Sukhvinder Singh Sukhu laid the foundation stone for the plant, envisioned as a Rs 268-crore investment in the Malot Kandrori Industrial Area. 

However, villagers point out that the plant’s construction and operations have coincided with “an alarming drop in groundwater levels,” as stated in a joint letter submitted to district authorities last month.

The protest is anchored in the Himachal Pradesh Groundwater (Regulation and Control of Development and Management) Act, 2005. The law aims to regulate groundwater exploitation, ensure sustainable extraction, and prevent depletion. Section 5 empowers the State Authority to notify areas for regulation, and Section 7 stipulates that no user can sink a well without a permit from the appropriate authority. 

Critically, Section 7(5)(f) mandates a minimum distance of 200 metres for shallow wells and 300 metres for tube wells from any existing water source or irrigation scheme.

Villagers allege that Varun Beverages has constructed multiple tube wells within 300 metres of community wells and government irrigation points, violating both the Act and the NOC conditions. 

Leading the protests, senior Congress leader Manmohan Katoch alleged, “It is surprising to know that the company claims it had been granted permission by the authorities to dig five bore wells within a 300m area. Under which law was the permission given?”

The villagers’ letter specifically demands “immediate closure and cancellation of the NOC issued to Varun Beverages Limited for flouting the law and endangering the water security of thousands.” 

They say repeated written complaints to district and state authorities have received no meaningful response.

Under the Act, permits are subject to strict compliance with distance and extraction norms, and Section 13 empowers the Authority to inspect, seize equipment, and order closure if violations are found. Section 12 authorises suspension or cancellation of permits if extraction is found detrimental to public interest, or if permit conditions are breached. Offences can invite penalties (Section 21), and liability extends to company officials (Section 23).

The panchayats warn that unchecked water extraction will not only worsen the ongoing drought but also render agricultural land barren and aggravate the drinking water crisis. “We urge the authorities to act now. If water keeps falling at this pace, our villages will become unlivable,” the letter reads.

Reacting to the allegations, Varun Beverages' CFO Kamlesh Kumar Jain told NewsDrum, “The company has several bottling plants across the country and has always followed the law of the land. In case there is any issue with a specific plant, the local management must be working to resolve this matter.” 

The plant is owned by Balish Kataria, a Ludhiana-based industrialist and owner of Dhillon Drinks and Beverages. When asked, Kataria told NewsDrum to seek answers from authorities.

Officials of the state water resources department said the company had taken prior and proper permission from the relevant authorities to dig five borewells within the stipulated area. "They have followed the due procedure in this case. However, in view of fresh allegations, we will soon conduct a detailed investigation into the matter," an official said.

With drought conditions prevailing and water resources under stress, the villagers say they have no option but to escalate their agitation if action is not taken soon.