Taking serious note of alleged exploitation of groundwater by multinational cola giant Pepsi, a

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committee of the Kerala Assembly today recommended imposition of curbs on extraction of water by the company's plant at Pudussery in Palakkad district.

The report, tabled in the assembly, however, did not ask for closure of the plant, which provides direct and indirect employment to 3,500 people.

Releasing the report panel Chairman and state Water Resources Minister N K Premachandran said the key suggestion in the report was to impose restrictions on water extraction by Pepsi at 2.34 lakh litres per day from the present average of seven lakh litres a day.

On the issue whether the plant was causing water pollution, the report said the possibility could not be ruled out, but required a detailed study to draw firm conclusions.

The house committee said that industrial units using groundwater as the main raw material should be generally discouraged.

The report comes at a time when a high-level panel is finalising its report on "socio-economic" damage allegedly caused by the Coca Cola plant at Plachimada, also in Palakkad district, which has been declared as a drought-hit area.

He said the high-level committee headed by Additional Chief Secretary K Jayakumar, is expected to submit the report soon.