Pepsi Gets OK for Punjab Plants

NEW DELHI — India today approved a controversial $15-million deal with PepsiCo Inc., allowing the U.S.-based soda pop giant to establish factories across Punjab as part of a plan to rejuvenate the violence-torn northern state.

The central Cabinet approved the deal just two days before Prime Minister Rajiv Gandhi’s first visit in two years to Punjab, where he is expected to announce a new economic assistance package aimed at resurrecting an economy undermined by a persistent Sikh separatist campaign. Food Processing Minister Jagdish Tytler said the U.S.-based multinational food and beverage corporation is free to sign a contract with the Punjab state government and begin construction of four facilities projected to generate $13 million annually in hard currency.