Opposition aims to weaponize govt decision to allow private distillery in Kanjikode

THIRUVANANTHAPURAM: As the assembly session is about to begin on Friday, the cabinet's decision to grant a brewery distillery to Kanjikode private company ‘Oasis’ has become a weapon for the opposition. Opposition leader VD Satheesan and former opposition leader Ramesh Chennithala criticized the decision. However, the government remains unperturbed and looks to move ahead with the plan.

In 2018, the government gave permission to set up four distilleries in the state but withdrew following opposition. The report submitted to the government by the principal secretary of the tax department appointed to study various aspects of setting up distilleries has not been released. Moreover, the opposition points out that an executive order was issued in 1999 against starting new distilleries. But there is no ban on allowing distilleries in the current liquor policy. The new liquor policy is yet to be announced. The government is quoting this rule to ward off the opposition's dissent. But, the opposition is not sticking to the rule but is more focused on the dubious government decision to favour just one company.

The question also arises as to whether an environmental study has been conducted before permitting a distillery, with five crore litre of underground water per year, in a heavily drought-prone Palakkad.

It is expected that at least 1500 people will get employment once the Oasis project starts operation. Apart from ethanol, Indian-made foreign liquor, beer, and wine will also be produced. Ethanol production from grain will also produce fodder as a by-product. 18 blending and bottling units in the state manufacture Indian-made foreign liquor for various companies but not even one produces ENA, which is the main raw material for alcohol production.

According to excise figures, 9 crore litres of ENA reaches Kerala every year from the states of Madhya Pradesh, Maharashtra and Punjab. A good share of imports can be avoided if production starts here.

Established in 1987 in Indore, Madhya Pradesh, Oasis Distilleries mainly produces ethanol from grains. According to the estimate for 2021, the production is 22 crore bulk litres of spirit with an annual turnover of Rs 2100 crores. Popular brands in Kerala are Royal Arms, Every Day Brandy, Royal Arms Whiskey and Every Day Gold Whiskey.