KOCHI: Though the state government is on the defensive following the ripples created by the brewery allocation issue, there are indications it is weighing the option of opening up the brewery industry to more investors.
If the two significant issues, of pollution and potable water, can be effectively addressed, more investors could be allowed into the sector, feels a section within the government.
“What is wrong in opening up the sector for investors? It will only help the industry in the state,” Finance Minister T M Thomas Isaac told ‘Express’.
However, it does not look that easy. A petition has been filed before the Kerala High Court challenging the government’s decision to grant licences to three breweries and a distillery owned by private individuals without a Cabinet decision.
The petitioner alleged the procedure followed by the government in allotting the licences was not transparent.
Chennithala talks tough
Palakkad: Opposition leader Ramesh Chennithala on Tuesday said the party will not allow the Appollo Breweries and Distilleries to set up unit in Elapully panchayat, which has been facing a serious drinking water problem. He was speaking after visiting Elapully, where the proposed brewery unit has been sanctioned by the LDF Government.
Though the state government is on the defensive following the ripples created by the brewery allocation issue, there are indications it is weighing the option of opening up the brewery industry to more investors.
If the two significant issues, of pollution and potable water, can be effectively addressed, more investors should be allowed into the sector, feels a section within the government.
“What is wrong in opening up the sector for investors? It will only help the industry in the state. If the two major issues, pollution and fair price for potable water, can be addressed, there is nothing wrong in sanctioning more breweries and distilleries in the state as per procedures,” Finance Minister T M Thomas Isaac told Express. The government can even consider giving priority to breweries from within the state to facilitate the industry, he said.
In fact, given the host of issues faced from out-of-state contractors in the sector, the previous Left Government of 2006-11 had even thought about reviving the Chittoor Sugar Mill to set up a distillery unit.
With the Beverages Corporation being the sole authority of liquor sales in the state, the government can seriously consider the possibility of promoting brewery industry within the state itself. It will also ensure sale of better-quality products.
“The Chittoor unit was under a cooperative society comprising people from Kerala and Tamil Nadu. The takeover procedures took a long time and we could not complete it. The plan was to set up a distillery unit here,” said senior CPM leader P K Gurudasan who served as Excise Minister in the 2006-11 VS Government.
Opening more breweries and distilleries will also help in generating additional revenue for the state.
Having state-owned breweries will protect the state’s revenue and offer a wider choice for high-end customers.
Going by the current consumption and supply of liquor from outside the state, there is definitely both the need and an untapped market for setting up more breweries here. In 2015-16, about 154 lakh cases of beer were sold here, of which 40 per cent came from outside. As for IMFL (Indian Made Foreign Liquor), of the 208 lakh cases of IMFL sold last year, eight per cent came from outside, said sources with the Beverages Corporation.
Govt’s decision challenged in HC
Kochi: A petition has been filed before the High Court challenging the government’s decision to grant licences to three breweries and a distillery owned by private individuals without a Cabinet decision. The petition said the permits were issued violating the existing rules and policies and without conducting environmental impact assessment especially with regard to the utilisation of groundwater. The land identified for one of the breweries was in Palakkad which was already facing acute shortage of potable and irrigation water. The petitioner alleged the procedure followed by the government for allotting the licences was not transparent.