Citing fears of acute water stress and the collapse of paddy farming due to a proposed brewery plant, the people in the area have drawn sharp parallels with the legendary Plachimada struggle that forced the shutdown of the Coca-Cola factory.
Published Jan 22, 2025 | 9:00 AM ⚊ Updated Jan 22, 2025 | 9:43 AM
Elappully Grama Panchayat office.
Elappully Grama Panchayat in the Palakkad district of Kerala is on the brink of mass agitation, eerily reminiscent of Plachimada’s historic fight against Coca-Cola. People there warn that a proposed brewery plant in the region could lead to a water crisis.
Citing fears of acute water stress and the collapse of paddy farming, the people in the area have drawn sharp parallels with the legendary Plachimada struggle that forced the shutdown of the Coca-Cola factory.
The bone of contention is against the brewery plant, planned to be set up by Indore-based Oasis Commercial on a 26-acre land at Mannukkad, the sixth ward of Elappully Grama Panchayat.
The Plachimada protests, led by the Adivasi community and local farmers, remain etched in Kerala’s environmental history as a rare victory against corporate exploitation of natural resources.
The Hindustan Coca-Cola Beverages plant, which began operations in 1999, was accused of depleting and contaminating groundwater, pushing the agrarian community to its limits. Public fury led to the formation of the ‘Coca-Cola Virudha Janakeeya Samara Samithy,’ and after relentless protests, the plant was shuttered.
Now, Elappully warns of a similar battle, with grama panchayat members voicing concerns that the brewery plant will deepen the region’s existing water woes and jeopardise its agricultural heritage.
“We may have to replicate Plachimada’s model of resistance if this project proceeds,” said a grama panchayat member.
Excise Minister MB Rajesh, however, dismissed these apprehensions, claiming the Opposition’s allegations about water scarcity lack substance.
He challenged critics to raise the issue in the Assembly and stated that the government would counter their claims with evidence.
Site for the proposed brewery plant in Elappully. (Supplied)
Talking to South First, Elappully Grama Panchayath President Revathy Babu K expressed concerns over the potential depletion of drinking water resources, environmental damage, and lack of local consultation.
“We were in the dark about the project until the state Cabinet approved it on 15 January. The permission was reportedly granted through the government’s single-window system under the ‘Ease of Doing Business’ initiative, bypassing direct consultation with the local governing body,” said Revathy.
“The first step should have been seeking permission from the grama panchayat to clear the land. That hasn’t happened,” she added.
According to her, while the single-window system allows a grace period of three years to register with the grama panchayat, no environmental impact study has been conducted to assess the repercussions of the project.
Further, she elaborated on the drinking water crisis faced by the panchayath.
“Elappully is a drought-prone area and a rain-shadow region where clean drinking water is already scarce. The panchayat had to spend ₹12 lakh last summer to supply water via tankers for two months. The proposed factory, which requires large quantities of water, has raised fears of further depletion of water resources,” Revathy said.
She added, “This is an arid region, and the people here, mostly farmers, already face severe water shortages. If the factory becomes operational, the situation will worsen. Housewives will have to ration drinking water.”
According to officials of the grama panchayath, Elappully currently operates three major drinking water projects, down from six or seven in the past, along with over a hundred smaller initiatives.
Despite efforts like rainwater harvesting and the renovation of 16 public ponds, the region continues to face acute water shortages, especially during summer.
The panchayat has also voiced concerns about the solid waste and organic waste that will be generated by the factory. Although the company claims to use zero-discharge technology, the panchayat president pointed out that no detailed plan for waste management has been presented.
“The institution is being set up with an investment of ₹600 crore. Where will the waste from such a large unit be deposited? There’s no mention of how solid waste will be handled,” she told South First.
According to her, the resources could have been used for projects to benefit farmers and the local economy.
“Instead of producing alcohol, why not focus on value-added agricultural products? This would benefit farmers more, without harming nature,” Revathy suggested.
Revathy said that the grama panchayath passed a resolution on 20 January requesting the Kerala government to reconsider its recent approval for setting up multiple industrial units by Oasis Company near the Kanchikode Industrial Area.
The proposed units include an ethanol plant, a malt feed distillation unit, an Indian-made foreign liquor bottling unit, a brewery malt spirit plant, and a brandy winery plant.
According to the grama panchayat officials, these units are to be established on 24 acres of land owned by the company at Mannukkad, in the sixth ward of the panchayat, which is adjacent to agricultural land and falls within a drought-prone region.
The resolution expressed concerns that the operations of the industrial units could deplete the area’s groundwater, exacerbating the already critical drought situation and threatening local agriculture.
The governing body further urged the government to review the order issued on 16 January 2025, citing the potential environmental and agricultural impacts on the region.
Site for the proposed brewery plant. (Supplied)
A resident from Mannukkad told South First, “In 2022, Elappully Grama Panchayat earned the National Water Award for being the third-best civic body in South India for its outstanding water conservation efforts. This recognition marked a significant turnaround for a panchayat once plagued by acute water scarcity.”
“However, I worry that our grama panchayat’s remarkable achievements are now under threat,” he added.
“The proposed plant in the area could jeopardise the water resources we’ve worked so hard to restore and manage. If this project moves forward without adequate safeguards, it could undo the progress, putting our community back into the cycle of water scarcity that we had once so successfully overcome,” the resident added.
In a striking twist of irony, senior CPI(M) leader and then chairman of the Kerala Administrative Reforms Commission VS Achuthanandan had openly criticised the first Pinarayi Vijayan-led government in 2018 and later in 2020 over this project.
His sharp dissent came over the controversial decision to establish a brewery plant in Elappully, a village within his Malampuzha Assembly constituency.
Achuthanandan, deeply familiar with the region’s acute water scarcity, vehemently opposed the move. He condemned the government’s decision to sanction the brewery despite the Ground Water Department classifying the area as extremely vulnerable.
Meanwhile, the ruling CPI(M)in Kerala on 21 January defended the state government’s decision permitting the private company to establish a brewery in Elappully, dismissing Opposition protests as politically motivated.
Addressing the media, CPI(M) State Secretary MV Govindan rejected concerns about water scarcity, explaining that the brewery’s water needs would be met through rainwater harvesting.
“A five-acre facility is proposed to collect rainwater locally,” he said, adding that the government was open to discussions with the company to address any issues.
Govindan also refuted claims that the project would increase liquor consumption, emphasising that the brewery would primarily produce spirit.
He clarified that alcohol production and distribution in Kerala remain under strict government control through the State Beverages Corporation.
Responding to allegations of corruption, Govindan suggested that the protests might be influenced by the spirit lobby, which imports over 10 crore litres of spirit annually into Kerala. He argued that the establishment of brewery units could disrupt this lobby’s interests.
He urged critics to view the project in a rational light, free from political biases.
Meanwhile, the Kerala Water Authority (KWA) said it cannot supply water to the brewery in Elappully.
“We have informed the government that water cannot be provided for industrial purposes. Now it is up to the government to make a decision,” Water Authority Palakkad Superintending Engineer EN Surendran told the media.
“The distillery cannot be given a share of drinking water. There is a situation in Palakkad district where not even drinking water can be distributed. How can water be provided for industrial purposes then? Oasis Company has misled the Water Authority. Last June, a letter was given asking for 500 kiloliters of water. The water authority has no water to supply. There is a Kinfra project coming up in the future. A letter was given that Oasis could take water if Kinfra agreed,” Surendran said.
“The company’s letter to the water authority said that it was to participate in a tender of Bharat Petroleum. The letter said that it was for an ethanol company. We have come to know that it is for a brewery,” said the Superintending Engineer.
However, the company officials refuted the allegations. “The permission for the brewery at Ellapully was obtained transparently, following all the laws of the state and the norms set by the government. No one has been misled. We have nothing to hide as we are working straightforwardly,” company officials said.
Palakkad, often celebrated as the “granary of Kerala” for its sprawling paddy fields, is facing a silent crisis. Once thriving as a major paddy-growing region, the district’s cropping patterns are currently undergoing drastic changes, largely due to acute water scarcity.
The Central Ground Water Board (CGWB), under the Ministry of Water Resources, has flagged alarming concerns. Over-dependence on groundwater for domestic, irrigation, and industrial needs has led to a sharp decline in water tables, particularly in the district’s eastern regions. The result: A parched land struggling to sustain its agricultural legacy.
Critics of the government’s development projects in Palakkad draw attention to a Kerala State Disaster Management Authority (KSDMA) study on Vadakarapathi Grama Panchayat, located just 17 km from Elappully.
This region, classified as one of the driest in Kerala, has already been declared an “overexploited” area by the CGWB. Groundwater levels are depleting at an alarming pace, creating a grim future for sustainable water usage.
“Vadakarapathi was studied for ways to augment groundwater recharge. However, in Elappully, which shares similar dry conditions, the government seems to be promoting water exploitation instead of conservation,” lamented a concerned resident.
The question is whether Palakkad’s fertile lands would survive this dual assault of resource depletion and short-sighted policies.
(Edited by Muhammed Fazil.)
