Hyderabad-based pharmaceutical company Everest Organics has received a closure order for its factory in Sadasivapet town of Sangareddy district in Telangana. According to a company filing to Securities and Exchange Board of India (SEBI) and Bombay Stock Exchange (BSE), Everest said that it received closure orders from Telangana State Pollution Control Board (TSPCB) on October 20, 2018. This has been in regard to non-compliance of pollution norms.
“The management has taken up the matters with Pollution Control Authority (TSPCB) and is trying to resolve the issue at the earliest,” the company said in the filing.
Everest Organics set up operations in 1993 and is in the business of manufacturing bulk drugs. It set up the factory in Sadasivapet in 1996, spread over a total area of 32 acres. It supplies bulk drugs to several established formulation companies in India, Europe, USA, Far East, Middle East and South American countries.
However, ever since the factory was set up, residents of villages around Sadasivpet have been allegedly suffering due to the pollution caused by the factory.
“Since 1996, people have been suffering from various health ailments. The factory has been causing land and water pollution in Konapur, Aroor, Nalugulapalli and other villages. They inject effluents into the soil and pollute the land. In our village, the growth of people is being affected due to the consumption of contaminated water. We have to spend Rs 20 to buy bottled water and survive…Why are all pharma companies coming to the state? Why is the government making us suffer for the development of the state?” Bakkappa from Konapur village told TNM.
In 2016, the company also put in a proposal for expansion of the facility to increase its production capacity from 145.5 tonnes per annum to 1081.2 tonnes per annum with an investment of Rs 5.5 crore. For this expansion, it had also received a consent order for existing, new or altered discharge of effluents from the Telangana State Pollution Control Board in the same year.
However, the expansion plan was shelved after facing strong opposition by residents of Sadasivpet and neighboring villages.
After the company disclosed the closure notice to the stock exchanges, its shares fell by over 6% on Tuesday, opening at a low of Rs 72.05 on BSE.