THIRUVANANTHAPURAM: Barely days after presenting its maiden budget, the V D Satheesan government is facing mounting pressure to roll back two controversial proposals.
After veteran Congress leader V M Sudheeran opposed the proposal for a lower tax on low-alcohol beverages and to allow private participation in mineral sand mining, AICC general secretary K C Venugopal signalled the party high command’s unease over the controversy.
Widely regarded as Satheesan’s mentor, Sudheeran was a key backer in the former’s bid for the chief minister’s post. Moreover, the Satheesan-Sudheeran axis was seen as a formidable force in the state’s political landscape.
Congress leaders say Sudheeran’s intervention was inevitable given his long-standing reservations on both issues. He is also understood to be unhappy with the government’s handling of certain matters.
“The immediate trigger appears to be the poor response to Sudheeran’s demand for an inquiry into the suicide of former SNDP Yogam leader K K Mahesan, which was aimed at Yogam general secretary Vellappally Natesan,” a senior Congress leader said.
“His opposition to the chief minister’s flagship proposals reflects a growing unease within the party.”
The high command is understood to have taken serious note of Sudheeran’s remarks. Venugopal’s statement that policy matters would be discussed within the party has also been interpreted by party leaders as broadly aligning with Sudheeran’s position, adding to the chief minister’s discomfort.
“There is concern over the proposal to levy a lower tax on low-alcohol beverages and to permit private participation in mineral sand mining. The state government has a responsibility to address such concerns,” the party leader told TNIE.
Excise Minister M Liju, who was reportedly upset over the lack of consultation on the proposal, has acknowledged the finance department’s authority to impose taxes. However, sources said he has instructed senior officials to inform liquor companies making enquiries that no decision has been taken on granting licences to manufacture low-alcohol beverages in the state.
‘It’s in accordance with ambitions of new gen’
The excise department is reportedly of the view that no concessions be made while taking decisions on the issue.
“It is to be seen how Satheesan handles the first roadblock to his vision of Kerala,” an associate of the CM said. “He presented a new vision in accordance with the ambitions of the new generation. It’s a fight between ideas.”
The controversy has also triggered a wider debate over Satheesan’s economic vision for Kerala. Criticism is mounting within sections of the Congress over his proposal to transform the state into a “Singapore-model port-led economy” through public-private partnerships under Mission Samudra.
Congress leaders and subject experts argue that the approach marks a departure from the UDF’s traditional focus on small-scale fishermen and the coastal economy.
“It was in 1984 that then CM K Karunakaran was forced to take additional charge of the fisheries department following protests by fishermen’s organisations over various demands,” said John Kurien, former professor at the Centre for Development Studies.
“Later budgets were largely focused on the welfare of traditional and small-scale fishing communities. The Kerala Fishermen’s Welfare Fund Board, Matsyafed and several educational and economic welfare measures for fishermen’s children were launched during Karunakaran’s tenure. It was also a Karunakaran government that formulated the state’s first fisheries policy in 1994.”
John said Mission Samudra runs counter to the interests of traditional coastal communities. “The new coastal sub-plan should begin with a moratorium on construction of new ports,” he added.
UDF constituents unhappy, too
With the UDF government set to formulate a new excise policy, several constituents are reportedly unhappy with the budget proposal. There is also apprehension about possible opposition from Christian churches and Muslim organisations.