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Air and water-borne mercury emissions have contaminated large areas of Kodaikanal and surrounding forests. A study conducted by the Department of Atomic Energy confirmed that Kodaikanal Lake has been contaminated by mercury emissions. Mercury pollution was reported in Kodaikanal which affected lakes in the area.
The causes, originating from a Hindustan Lever thermometer factory nearby, were reported to be dispersal of elemental mercury to the atmosphere from improper storage and dispersal to water from surface effluents from the factory. Apart from tests conducted on Kodaikanal lake, moss samples collected from trees surrounding the Berijam Lake, located 20 km (12.4 mi) from the factory were also tested. This showed mercury level in the range of 0.2 µg/kg, while in Kodaikanal lake the lichen and moss levels were 7.9 µg/kg and 8.3 µg/kg, respectively.
Fish samples tested from the Kodaikanal lake also showed Hg level in the range of 120 to 290 mg/kg confirming that pollution of the lake had taken place due to mercury emissions from the factory. The Hindustan Unilever thermometer factory caused widespread mercury pollution through improper disposal of broken thermometer waste containing large quantities of mercury. The factory sold much of this waste to a junkyard in Kodaikanal and also dumped large quantities in the forest behind the factory.
The factory was eventually closed in 2001 after 18 years of operation. Hindustan Lever, have used considerable legal maneuvering to avoid paying compensation the ex-workers and their families, many of whom died or became physically handicapped as a result of mercury poisoning.
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