Madhya Pradesh
,
Muhasa
,
Hoshangabad
Published :
May 2017
|
Updated :
September 19, 2025
Water, industry, and resistance: The Coca-Cola plant at Mohasa in Madhya Pradesh
Reported by
Arpit Deshmukh
Legal Review by
Anmol Gupta
Edited by
Anupa Kujur
Households affected
People affected
2016
Year started
110
ha.
Land area affected
Households affected
People Affected
2016
Year started
110
Land area affected
Key Insights
Sector
Industry
Reason/Cause of conflict
Beverages
Conflict Status
Ongoing
Ended
Legal Status
Region Classification
Rural
Unclassifed
Sector
Industry
Reason/Cause of conflict
Beverages
Conflict Status
Ongoing
Ended
Legal Status
Region Classification
Rural
Ended
1
Summary

In 2016, the state government had allotted 110 acres of land to the Coca Cola Company at Mohasa Industrial Estate, eight kilometres away from the Narmada river. The government claimed that the estate was being developed on government land.

The Coke's unit was slated as the first unit to take shape in the estate. The plant was also touted as the biggest plant of Coke in India. To facilitate this, the government set up a water treatment plant that can treat five million gallons of water per day for uninterrupted water supply to the company. It was also reported that the soft drink unit would require about one million litres of water daily, once fully operational.

The residents of Mohasa village, which is close to the industrial estate, and members of Vichar Madhya Pradesh, have opposed the project. They feared that besides polluting the river, the company would have extensively exploited the waters of the Narmada, leaving little for the public to use for irrigation and household purposes. They had staged a demonstration in front of the office of the district collector in March 2017 and took to the streets to march against the plant. Reportedly, the local administration had tried to persuade the people by explaining to them about the zero-discharge impact of the project.

With the controversies surrounding the project, the then Chief Minister Shivraj Singh Chauhan in 2017 had refused to attend the bhumi poojan (land worship ceremony) of the plant. In a similar case in Plachimada, Kerala, where the company's activities lead to water shortage and environmental problems, the Kerala government recommended the company be held liable for US$48 million in damages in 2010. Fearing the same fate, Coca-Cola had stalled the project in Hoshangabad till 2019.

However, the opposition against the establishment of unit continued. Due to unfolding of unexpected events against the plant, the Madhya Pradesh government in March 2022 decided to cancel the lease for allotment of land to the Coca Cola company. A government official cited non-adherence by the Company of the lease norms & conditions, as the underlying reason for the cancellation. Reportedly, the company was required to start the work within five years since the allotment of land, which it failed to do so. The company's spokesperson confirmed surrendering of land, who also stated that the company would expand its already operational plant in the state.

As per the reports, the cancellation of lease also dashed the hopes of a section of farmers who were hoping for purchase of their produce of mango and orange by the company, as the plantation had been carried out as per the advice of Horticulture Department.

2
Fact Sheet

Demand/Contention of the Affected Community

Demand to retain/protect access to common land/resources

Opposition against environmental degradation

Other Demand/Contention of the Affected Community

Region Classification

Rural

Type of Land

Common

Non-Forest (Other than Grazing Land)

What was the action taken by the police?

How many people did the police detain or arrest?

What is the current status of the detained/accused persons?

Did the person face any violence while in police custody?

If any arrests took place, were the accused persons produced before a judge within 24 hours of the arrest?

If the accused was not produced before a magistrate within 24 hours, or not produced at all, what were the reasons?

Legislation under which the accused was charged

Was the accused person informed of their right to legal representation? Did the accused person have access to legal aid?

In cases where the accused person approached the court for bail, was bail granted?

Why was bail granted or rejected? If granted, what were the bail conditions and quantum of bail?

Were there any other notable irregularities that took place, or other significant details?

Details of sources (names of accused, names and numbers of any lawyers, names of any police officers contacted)

Status of Project

Project scrapped

Original Project Deadline

2021

Whether the Project has been Delayed

Yes

Significance of Land to Land Owners/Users

Other Natural Resource extraction/dependence, Water bodies

Whether the project was stalled due to land conflict

Data Unavailable

Source/Reference

<https://www.hindustantimes.com/cities/bhopal-news/madhya-pradesh-govt-cancels-land-allocation-for-coca-cola-plant-101648179023419.html>

Total investment involved (in Crores):

750

Type of investment:

Investment Made

Year of Estimation

2016

Page Number In Investment Document:

Has the Conflict Ended?

Yes

When did it end?

March 2022

Why did the conflict end?

The lease issued to Hindustan Coca-Cola Beverages Private Limited (HCCB) for 110 acres of land at Mohasa, Narmadapuram (earlier Hoshangabad) was cancelled by Madhya Pradesh government in March 2022. As per the Principal Secretary of Department of Industrial Policy and Investment Promotion (Madhya Pradesh), the lease was cancelled as the company did not fulfil the norms of the lease. The company had to start the work within five years of allotment of land counted since 2016. However, the company did not adhere to the conditions & norms of lease.

4
Additional Information

Government Departments Involved in the Conflict:

M.P. Government

PSUs Involved in the Conflict:

Did LCW Approach Government Authorities for Comments?

Name, Designation and Comment of the Government Authorities Approached

Corporate Parties Involved in the Conflict:

Hindustan Coca-Cola Beverages Private Limited

Did LCW Approach Corporate Parties for Comments?

Communities/Local Organisations in the Conflict:

Villagers

5
Information on the use of criminal law

What was the action taken by the police?

How many people did the police detain or arrest?

What is the current status of the detained/accused persons?

Did the person face any violence while in police custody?

If any arrests took place, were the accused persons produced before a judge within 24 hours of the arrest?

If the accused was not produced before a magistrate within 24 hours, or not produced at all, what were the reasons?

Legislation under which the accused was charged

Was the accused person informed of their right to legal representation? Did the accused person have access to legal aid?

In cases where the accused person approached the court for bail, was bail granted?

Why was bail granted or rejected? If granted, what were the bail conditions and quantum of bail?

Were there any other notable irregularities that took place, or other significant details?

Legal Supporting Documents

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Author
Reported by
Arpit Deshmukh
Show more work
Fact sheet

Demand/Contention of the Affected Community

Demand to retain/protect access to common land/resources

Opposition against environmental degradation

If any arrests took place, were the accused persons produced before a judge within 24 hours of the arrest?

Was the accused person informed of their right to legal representation? Did the accused person have access to legal aid?

In cases where the accused person approached the court for bail, was bail granted?

Why was bail granted or rejected? If granted, what were the bail conditions and quantum of bail?

Were there any other notable irregularities that took place, or other significant details?

Status of Project

Project scrapped

Original Project Deadline

2021

Whether the Project has been Delayed

Yes

Significance of Land to Land Owners/Users

Other Natural Resource extraction/dependence, Water bodies

Whether the project was stalled due to land conflict

Data Unavailable

Source/Reference

<https://www.hindustantimes.com/cities/bhopal-news/madhya-pradesh-govt-cancels-land-allocation-for-coca-cola-plant-101648179023419.html>

JOIN
THE LCW COMMUNITY
Exclusive monthly policy briefs, stories from the ground, Quarterly Analytics report, Curated Expert talks, merchandise and much more.


Support our work.
Sign Up Today
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