Kerala: Brewery unit approval in Palakkad sparks row as Congress alleges firm's link to Delhi liquor case

A political controversy has erupted in Kerala over the LDF government's approval for Oasis Commercial Pvt Ltd to establish a brewery in Palakkad.

Kerala: Brewery unit approval in Palakkad sparks row as Congress alleges firm link to Delhi liquor case anr

Thiruvananthapuram: A controversy has emerged in Kerala regarding the ruling LDF government's decision to permit a company to establish a brewery unit in Palakkad district. The opposition Congress has alleged that the firm has links to the Delhi liquor policy case. However, the government has refuted the claims, asserting that all procedures and regulations were followed.

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The state cabinet approved Oasis Commercial Pvt Ltd to set up the facility in Elappully, Palakkad, contingent on adherence to existing guidelines and conditions.

Senior Congress leader Ramesh Chennithala alleged that Oasis Commercial Pvt Ltd was granted permission without a tender process. He referred to a standing 1991 order that prohibits issuing licences for brewery plants in the state, citing concerns about groundwater exploitation.

Chennithala said, "The 1991 order is still pending. That order clearly mentions that in Kerala no more distilleries should be allowed to function. No more distilleries should be given licences. I don't understand how the government has given principal approval for the same."

"There are allegations against this company and it is involved in the Delhi liquor case. Many cases were registered against the company," he added.

Water supply from Malampuzha Dam

The Kerala government's move to supply water from the Malampuzha Dam to a brewery in Elappully, Palakkad, has sparked controversy, with allegations of violating a High Court order. The 2018 order stated that water from the Malampuzha Dam could only be used for agricultural purposes after meeting irrigation needs. Farmers have expressed strong opposition to the decision.

In 2018, the government proposed supplying 10 million liters of water daily from Malampuzha to KINFRA for industrial purposes. Preparatory work, including laying a 13-kilometer pipeline, had already begun. However, farmer Sivarajan filed a petition challenging this move, leading to the High Court's directive. The court emphasized that the dam was commissioned to serve agricultural needs and that the water was essential for irrigating 22,000 hectares of farmland, supporting thousands of farmers. With water already insufficient for farming requirements, the court ruled against its diversion for industrial purposes.

A significant portion of the second paddy crop in Palakkad district relies on water from the Malampuzha Dam, with farmers requiring at least 120 days of adequate water supply for a good harvest. This year, they received only 100 days' worth of water, leaving them concerned about yields. Additionally, drinking water for seven panchayats surrounding Palakkad municipality is sourced from Malampuzha, requiring a minimum of 60 million liters daily.

Currently, the Irrigation Department provides 96 million liters of water per day to the Water Authority for drinking water needs. Farmers allege that any surplus water is being diverted for industrial purposes. They worry that if water is also allocated to the brewery, Palakkad—known as the rice bowl of Kerala—may face a situation where rice has to be imported to meet local needs.

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