New Delhi: The government has once again rejected US soft drink giant Coca Cola's plea for waiver of the mandatory disinvestment of upto 49 per cent equity in its Indian operations, but granted it a month's grace period till August 17 to comply with the condition.

"The government has again turned down Coke's request for a review. However, considering that the time to disinvest is expiring on July 17, it has decided to grant the company a grace period of one month to comply with the requirement," Industry Ministry sources said.

When contacted, Coke's spokesperson Nantoo Banerjee said, "We had filed a petition last month for review and reconsideration of government's earlier position. We have not got any communication from the government yet."

The government had in May, 2002 rejected a renewed plea by Coke seeking exemption from divestment condition or else a moratorium for five years citing financial condition of the company and adverse market conditions.

Government sources said that in the latest petition, perhaps the fifth or sixth, the company had not cited any fresh grounds for reconsideration and also did not rule out the possibility of Coke approaching the Industry Ministry again before the August 17 deadline for a review.

PTI