Kerala Excise Minister M B Rajesh assured the state assembly on Monday that the proposed brewery unit in Palakkad district will not lead to water scarcity in the region. The minister's statement came during a question hour session, addressing concerns raised by IUML MLA P Mammikutty regarding potential water shortages due to the upcoming plant.
Malampuzha Dam Adequate for Water Supply
Rajesh clarified that only 13.19 percent of the total storage capacity of Malampuzha Dam is currently utilized for drinking water and agricultural needs. Given this scenario, he stated confidently that there was "no possibility" of water scarcity arising from the brewery operations. Furthermore, the minister emphasized that the facility would not extract any groundwater, ensuring environmental sustainability.Rainwater Harvesting to Meet Industrial Needs
Highlighting eco-friendly measures, Rajesh informed the assembly that the Kerala Industrial Infrastructure Development Corporation (KINFRA) already provides 10 million litres of industrial water through rainwater harvesting initiatives. He further noted that the project's proposal from Oasis Commercial Private Ltd. had been cleared on the explicit condition that no groundwater extraction would occur. This agreement, he pointed out, dated back to the administration of former Chief Minister Oommen Chandy in 2015.Opposition Raises Environmental Concerns
Former Leader of Opposition, Ramesh Chennithala, strongly criticized the government's stance, accusing it of double standards. He questioned how those who once protested against Coca-Cola's water exploitation were now supporting a liquor manufacturing enterprise. Minister Rajesh responded firmly, differentiating the current project by underscoring that past protests targeted groundwater exploitation and pollution—issues not applicable in the current scenario.Economic and Tax Benefits Highlighted
Minister Rajesh detailed significant financial benefits from the proposed brewery, projecting over Rs 100 crore in GST revenue annually for Kerala. Addressing misconceptions raised by Opposition Leader V D Satheesan regarding taxation on imported spirits, Rajesh clarified:- Extra Neutral Alcohol (ENA) imports are exempt from GST.
- Ethanol, however, is taxed at 5 percent under GST.
Aim for Self-Reliance and Job Creation
The minister underscored the government's strategic aim of producing spirits domestically for industrial purposes, reducing dependency on imports from states like Maharashtra, Karnataka, Telangana, Andhra Pradesh, Rajasthan, and Daman and Diu. Maharashtra, he noted, remains the largest supplier, providing 2.68 lakh crore litres of spirit annually.Rajesh further revealed potential conflicts of interest, indicating political connections within companies exporting spirit to Kerala. Notably, he mentioned that a minister from Karnataka serves as the chairman of a company, and several Members of Legislative Council (MLCs) sit on the boards of other supplying firms.
Transparent Process in Granting Liquor Unit Permissions
Concluding his statement, Rajesh maintained that successive Kerala governments had historically granted liquor manufacturing permits without inviting tenders. However, he assured the assembly that the proposed distillery in Palakkad would generate substantial tax revenues, create new employment opportunities, and foster local entrepreneurship without negatively impacting water resources.
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