SIPCOT allotted 71.34 acres at the Industrial Growth Centre in Perundurai on June 21, 2013.

The Tamil Nadu government has cancelled the plots allotted to Coca-Cola's beverages manufacturing facility in the State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) Industrial Growth Centre in Perundurai.

On April 20, SIPCOT Managing Director R. Selvaraj issued the cancellation order of 71.34 acres allotted to it for non-compliance of terms and conditions of allotment order / lease deed.

In a communication to Hindustan Coca-Cola Beverages (HCCB) Private Limited, Mr. Selvaraj merely said the plots allotted have been cancelled.

SIPCOT allotted the land on June 21, 2013. It was further amended twice. A lease deed was executed and registered by HCCB on January 23, 2014. However, the allotment and subsequent soil testing triggered a spate of protests from residents of Perundurai and Chennimalai towns and farmers in the area, who feared groundwater depletion and discharge into the water courses.

A Trust to save the towns from the proposed plant was also formed. It became a a hotly debated political issue, including in the Assembly during the budget session in March.

Meanwhile, Hindustan Coca-Cola Beverages Pvt. Ltd. (HCCBPL), in a statement, said the company had written to the State government that due to unforeseen pressures and delays it will not be able to invest in SIPCOT, Perundurai.

The plant with a proposed investment of Rs 500 crore needed four approvals/permissions without which the company was unable to apply for Consent to Establish.

Despite sending repeated reminders to SIPCOT, the inordinate delays coupled with local activism could not be prevented by the company, the release said.

Despite best efforts to address concerns, the construction could not be commenced, the company said asking the State government to refund entire money paid so far.