Liability of MNC in India under the

Environmental Law

ADAM KHAN

16124

GROUP 8

SUB: ENVIRONMENTAL LAW

INTRODUCTION

Since 1991, India has witnessed a dramatic increase of multinational

corporation activity, giving rise to tremendous economic development
of the country.

Consequently, their business operations impact the physical

environment of the country on a large scale.

This information can have implications on future environmental

policies and economic reforms in the country.
BACKGROUND

In the post-industrialized era, MNCs in the developing world are changing their
environmental management in the context of various internal and external drivers.

These changes often lead to an introduction of new strategies, systems, and

practices across the environmental management of MNCs.

Despite significant environmental policies introduced in India, such as the Water Act
(1974), Air Act (1981), and Environmental Protection Act (1986), its environmental
quality has continued to deteriorate. India’s Industrial Policy of July 1991 radically
pushed for an open economy by globalization, liberalization, and privatization.
INDIA’S PHARMACEUTICAL INDUSTRY DIRECTED TO WESTERN
COMPANIES
In 2009, the pollution control board of
Andhra Pradesh asked SMS
Pharmaceuticals Ltd to shut the
Patancheru plant after protests by local
activists.
The Times of India also reports that in
2012, in line with the Supreme Court’s
order, the pollution control board of
Andhra Pradesh had ordered the closure
of 12 manufacturing units of different
Indian pharma companies, including
Aurobindo Pharma, around the city for
allegedly violating pollution norms, but
later rescinded this.
THE PEPSI CO CASE
PepsiCo entered India in 1989 by a joint
venture (JV) with the Punjab-
government-owned Punjab Agro
Industrial Corporation (PAIC) and Voltas
India Limited. In 1994, Pepsi ultimately
bought out its partners, becoming a
fully owned subsidiary and ending the
joint venture.
According to Indra Nooyi, CEO of
PepsiCo Inc., soft-drinks and bottle
water account for only 0.04% of the
The main problem was with the
total industrial water usage in India.
Industrial Water Use and Industrial
However, given the scarcity of drinking
Plastic Waste Management.
water in India, this use still has a large
impact on the population that does not
have access to clean drinking water.
CONCLUSION

The majority of
These key the drivers fall
It highlights the
drivers have under informal
minimum role
spurred socio-political
played by the
reduction in the institutions
GoI in assuring a
company’s water rather than
positive change
use, formal
in the
enhancement of institutions such
environmental
water quality, as host country
standards
and reduction of regulations and
followed by an
packaging policies followed
MNC in India
waste. at the
headquarters.
THANK YOU