Times Of India *Hyderabad*; Date:2007 Sep 26; Section:Front Page; *Page
Number 1*   *Coke gets water at 2.5p; common man at 10p*


M Sagar Kumar | TNN

Hyderabad: It seems that it's easier and cheaper for big companies to get
water in AP than a common man. The Visakhapatnam Municipal Corporation (VMC)
has been supplying potable water to Coca-Cola company at 2.5 paise per litre
but charging its domestic consumers 10 paise per litre.
   "Coca-Cola sells its 300 ml soft drink at Rs nine per bottle. Why should
the corporation supply drinking water to this company at such cheap rates
when it is fleecing the public by charging a high price?" questioned amicus
curiae S Ramachandra Rao at the A P High Court.
   The high court is currently hearing arguments over the huge amounts of
potable water that is being used by Coca-Cola, its price and the resultant
depletion of groundwater in various parts of the state.
   The division bench comprising Chief Justice G S Singhvi and Justice C V
Nagarjuna Reddy, which heard amicus curiae S Ramachandra Rao and the
multinational company's counsel Amit Sibal on Monday on a PIL, would resume
its hearing on Wednesday again.
   While Sibal maintained that replenishment of groundwater levels in the
state are very much within the safe zone except during 2004 when the state
was reeling under a severe drought, Ramachandra Rao questioned the
enthusiasm of the civic bodies such as the VMC in supplying huge quantum of
potable water at cheap rates to the soft-drink giant.
   According to Rao, VMC entered into an agreement with Coca-Cola in
December 2003 and since then it has been supplying water to the company at
Rs 25 for every kilo litre (1,000 litres), which translates to 2.5 paise for
a litre. But domestic consumers have to cough up 10 paise for a litre. When
Rao pointed out that the company consumed 77,522 kilo litres in 2004, Sibal
tried to explain it away by saying the MNC was trying recycle water and
reduce consumption.
   Moreover, while the company was guaranteed 24-hr uninterrupted water
supply as per the agreement, domestic consumers got water once in two days
and often the supply was erratic. Rao questioned the logic behind supplying
water to a company at a price much lower than what the public was being
charged.
   The bench is also looking into similar issues raised in the case of
Sarvaraya Sugars in East Godavari district and Laxmi Balaji Bottling Company
in Chittoor district who were also extracting huge quantity of groundwater
to make soft drinks.

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