CM terms it a compromise for Rebuild Kerala

Faced with mounting protests by a combative Opposition, the government has decided to cancel the approval for setting up three breweries and a liquor blending and bottling plant in the State.

Announcing the decision at a press conference here on Monday, Chief Minister Pinarayi Vijayan said the approval was being cancelled to put an end to the controversy at a time when the State needed all its resources for the post-flood rehabilitation and reconstruction programme. Stoutly defending the approval granted for the new units, he said the government had done nothing wrong and had gone by all the rules and procedures.

He, however, added that there would be no going back on the policy to allow distilleries and breweries. A mechanism would be put in place to process applications for new units.

Asked whether the decision would not be construed as a climbdown in the face of the agitation launched the Opposition, Mr. Vijayan said the government was not surrendering to the Opposition’s demands. “It is only a compromise for the post-flood Rebuild Kerala initiative”.

He explained that the establishment of new breweries and distilleries was aimed at promoting domestic production of beer and liquor rather than enhancing the supply in the State. “With 8% of requirement for liquor and 40% of the beer coming from other States, Kerala needs new blending units.”

Countering the UDF’s allegations, he said the Government Order issued in 1999 not to allow new liquor units applied only to the applications received at that time, it did not pose a hurdle to accepting applications thereafter. The Antony government had issued a licence for liquor units in 2003.

Responding to another allegation raised by the UDF, Mr. Vijayan said no government had ever invited applications to set up breweries or distilleries. The Opposition, he said, was trying to create a smokescreen and whip up feelings against the government at a time when the state had to stand united for the Rebuild Kerala project.

Ever since the Cabinet decided to grant approval for three breweries and one blending unit, the UDF and BJP had raised allegations of massive corruption in the deal and tried to pin down the government. Accusing Mr. Vijayan and Excise Minister T.P. Ramakrishnan of promoting benami companies, Leader of the Opposition Ramesh Chennithala had demanded an inquiry on the issue.