Palakkad distillery row: Cabinet note prepared without consultation, nod given in hurry, alleges Satheesan
![PTI01_18_2024_000073B Leader of the Opposition V D Satheesan. Photo: Manorama](https://img.onmanorama.com/content/dam/mm/en/kerala/top-news/images/2024/4/13/vd-satheesan-file.jpg?w=1120&h=583)
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The state cabinet gave the nod for a distillery plant at Elappully panchayat in Palakkad based on a note approved by the Excise Minister M B Rajesh without consulting with other departments, opposition leader V D Satheesan alleged here on Wednesday. The cabinet note dated January 15, 2025 shows that no other department was consulted and no remarks were included in the note.
The Chief Secretary approved the note on January 7, and two days later, Minister M B Rajesh approved the note. The Department of Taxes issued an order giving a preliminary nod for the distillery plant a day after the cabinet approved the decision.
The cabinet also took note of the report prepared by the state Excise commissioner, who reported that the raw materials required for the project are included among the agricultural crops being grown in Kerala and will boost the farming sector. Besides, the Kerala water authority has already given a nod for providing the water required for the project, he cited.
The official also added that this kind of project was the first in Southern India, and only Oasis Commercial Private Limited was included in the tender list issued by the oil companies under the union government for ethanol production. If the project is allowed in Palakkad, it will generate employment opportunities and boost Kerala's financial prospects, the Excice Commissioner reported.
Satheesan alleged that apart from Oasis Commercial Pvt Ltd, no other departments or companies were aware of the decision. The president of Elappully Grama Panchayat, where the brewery and distillery are set to be established, has voiced strong opposition to the project, stating that its water demands cannot be met through rainwater storage tanks. The CM had claimed that the brewery’s water needs would be met by the Kerala Water Authority and rainwater storage.
On Thursday, the CM clarified in the assembly that the project was approved under the “ease of doing business” framework, meaning it did not require panchayat consultation. Addressing concerns about drinking water scarcity, Vijayan reassured that the government would not allow any situation leading to water shortages.
An order issued by A Jayathilak, Additional Chief Secretary, Department of Taxes, notes that the government has decided in the 2023-24 liquor policy that it will encourage the production of Extra neutral alcohol (ENA) required for making liquor in the state itself and that sanction will be given to distilleries and new units which come up with the plan.
The opposition has pointed out that the brewery, which requires at least five lakh litres of water per day, is unsustainable for the water-scarce Elappully village. They also allege large-scale irregularities in the approval process, further intensifying the political storm over the project.