"The factory has been polluting the river Chaliyar and the surrounding land for the past 35 years but no action has been taken," Surendranath, a representative of the Chaliyar Action Council told reporters here today, calling for closure of the unit.

Accused of polluting the surrounding land, the river Chaliyar and denuding the surrounding forests to meet its raw material needs, the Grasim unit continues to operate in the face of massive protests from the local people as well as environmental groups.

However, Grasim is now threatening to close down this factory, not because of pollution but on grounds of not receiving enough raw material, Surendranath told the meet organised by environment activist group Greenpeace.

He accused the Kerala government as well as the statepollution control board of turning a blind eye to the suffering of the people living in the area, who were faced with rising incidents of cancer and respiratory ailments.

Set up in 1963 as the Gwalior Rayon Silk Manufacturing Company, the pulp and paper factory consumed around 1.6 lakh tonnes of bamboo, eucalyptus and sometimes hardwood, the council said.

The plant's outdated technology produced highly toxic wastes and even after treatment the effluents had high levels of mercury, lead and organochlorines, which were highly carcinogenic, Surendranath said. However, Grasim had denied the charges, saying the pollution levels in its effluents were within permissible levels, he said.