Kerala needs liberal, sensible excise policy in tune with the times
A controversy is brewing in Kerala around a brewery unit proposed to come up in Palakkad district. It began with the Kerala government giving Oasis Commercial Private Limited a nod to establish grain-based distillation and brewery units worth Rs 600 crore at Kanchikode in Palakkad. The plan is to build an ethanol plant, multi-feed distillation unit, Indian-made foreign liquor bottling unit, brewery, malt spirit plant, and brandy/winery plant.
A controversy is brewing in Kerala around a brewery unit proposed to come up in Palakkad district. It began with the Kerala government giving Oasis Commercial Private Limited a nod to establish grain-based distillation and brewery units worth Rs 600 crore at Kanchikode in Palakkad. The plan is to build an ethanol plant, multi-feed distillation unit, Indian-made foreign liquor bottling unit, brewery, malt spirit plant, and brandy/winery plant. The project is estimated to involve an investment of Rs 600 crore and provide direct employment to 650 people and indirect employment to 2,000 others. As is the case with every new initiative in Kerala, this project—a first of its kind in southern India—has also become a contentious political issue, with the opposition raising red flags against the project.
The major allegation of the UDF is regarding the track record of the particular company. They allege that it has a controversial background and is involved in the Delhi liquor policy case and environmental violations in Punjab. Another allegation—which makes more sense—is that the brewery could exacerbate water scarcity in the region, which is already prone to droughts. It is argued that the project’s water consumption could adversely affect local agriculture and the daily water needs of residents. And that, indeed, is a serious concern. The government, on its part, insists that the brewery’s water requirements would be met through the Kerala Water Authority and rainwater storage, ensuring that local water needs remain unaffected. The government, in turn, accused the opposition of spreading false information to hinder a project that could potentially boost the state economy.
While the government must address the concerns over environmental impacts and procedural transparency, the opposition must not blindly oppose any new project that promises significant investment and job creation for the sake of opposing. Arguments aside, it is high time that the state—one of the country’s top liquor consumers—goes in for a more open and liberal excise policy. It must also consider relaxing excise policy norms regarding dry days and the 11 pm deadline to serve liquor, which is unheard of in most other states. This is particularly important as the state earns a large chunk of revenue from tourism and is increasingly seen as a destination for weddings and Meetings, Incentives, Conferences, and Exhibitions (MICE). The need of the hour is a sensible policy in tune with the times.
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Source : The New Indian Express
