The 14-member Committee of Experts headed by Additional Chief Secretary K Jayakumar in its report also recommended setting up of a tribunal to take the legal process forward since it would not be possible for the affected people near the plant at Plachimada to individually fight the legal battle. The report was handed over to the government of southern Indian state of Kerala.
Coca Cola has rejected the report holding that the very panel was set up based on the "unproven assumption" that it had caused damaged in the area.
"It is unfortunate that the committee in Kerala was appointed on the unproven assumption that damage was caused and that it was caused by Hindustan Coca-Cola Beverages," it said in a statement.
The report handed over to state Water Resources Minister N K Premachandran held that besides heavy withdrawal of ground water, the Hindustan Coca Cola Beverages Ltd plant had inflicted harm to farming and environment in the area by dumping solid waste.
It quantified the damage suffered by various sectors due to the functioning of the plant from 1999 to 2004 as agricultural loss (Rs 84.16 crore), pollution of water resources (Rs 62 crore), cost of providing water (Rs 20 crore), health damage (Rs 30 crore), wage loss and opportunity cost (Rs 20 crore). The plant had been non-operational since 2004 as it faced legal hurdles from the local Perumatty panchayat.
Receiving the report, the minister said it would be placed before the state cabinet to take appropriate steps.
The Left Democratic Front (LDF) government had set up the high-level panel in April 2009 to assess the "socio-economic damage" allegedly caused by "exploitation" of ground water by the plant. The report incidentally came on a day which is being observed as 'World Water Day'.
The committee comprised legal experts, including a retired district judge, agricultural scientists, environmentalists and health and ground water experts.
Jayakumar said the "dedicated" legal mechanism to fight for compensation could be created by the state government itself either by setting up a tribunal or asking the Centre to create such a mechanism under the Environment Act.
The report said the company was culpable under several laws.
By passing sludge as manure, which had contents of cadmium, led and chromium, the company had not only misguided farmers, but has become responsible for soil degradation, water contamination and consequential loss of agriculture, it said.
The general health of the people had been affected with skin ailments, breathing problems and other debilities, it added.
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