According to sources from liquor industry, the new order would lead to the opening of 150 bars with ratings of three-star and above (File) According to sources from liquor industry, the new order would lead to the opening of 150 bars with ratings of three-star and above (File)

Following the Supreme Court order last month, which granted discretion to states to decide on whether to allow sale of liquor along national/state highways in stretches under local self government bodies, the Kerala government has decided to give liquor licence to hotels with rating of three-star and above in village panchayats with a population of 10,000.

The state government order issued on Friday stated that as per the Supreme Court’s order, the Excise Commissioner has recommended allowing bars in village panchayats having urban character. Panchayats in the state, where the national/state highways pass through, have acquired an urban nature if their geography and population density are factored in, it said. Accordingly, it said, while considering the applications for liquor licence, village panchayats having a population of 10,000 can be considered as urban. Besides, places, which have been declared as tourism centres by the Tourism Department, can be considered as urban areas, it stated, adding that the government would allow liquor bars in such tourism centres.

According to sources from liquor industry, the new order would lead to the opening of 150 bars with ratings of three-star and above. Most panchayat areas in Kerala would become eligible for opening liquor bars with the fixing of population criteria at 10,000. The previous Congress-led government had brought in a new liquor policy in 2014, which led to closure of 700-odd bars, except a dozen ones with five-star rating. Later, the Congress government allowed the closed down bars to function as beer parlours.

However, a major chunk of such beer parlours had to shut down in April 2017 when the Supreme Court banned liquor outlets within 500 m of national and state highways. However, in June 2017, the current CPM-led government decided to partially reverse the former Congress government’s liquor policy, citing loss of job and slump in tourism industry. Accordingly, it allowed sale of Indian-made foreign liquor in hotels with three- and four-star ratings. This had led to opening of 200-odd bars. With Friday’s order, the number of liquor-selling hotels is expected to go up to 350.

Excise department sources said the new order will not lead to an increase in the number of retail liquor outlets, and that outlets closed down during the previous government’s tenure would not be opened. “However, there is no restriction on granting new licence to hotels with rating of three stars and above. Any hotel that meets the eligibility fixed by Union Tourism Department can apply,” sources said.

Although the CPM, in its election manifesto in 2016, had stated that the party wanted to bring down the use of liquor in a phased manner, it recently decided to sell foreign made foreign liquor through state-run liquor retailer BEVCO. This would come into effect next fiscal.

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