The project, led by Indore-based Oasis Commercial Private Limited, has come under fire for alleged corruption, procedural violations, and environmental concerns
Published Jan 18, 2025 | 4:44 PM ⚊ Updated Jan 18, 2025 | 4:44 PM
Brewing trouble: Palakkad distillery plan faces backlash over water and ethics concerns (@GreatKerala1 on X)
The Kerala government’s initial approval for a ₹600 crore brewery and distillery project in Kanjikode, Palakkad, has sparked intense political controversy, with the Opposition gearing up to raise the issue both in the Assembly and outside.
The project, led by Indore-based Oasis Commercial Private Limited, has come under fire for alleged corruption, procedural violations, and environmental concerns.
The approval green lights the creation of an integrated unit that includes an ethanol plant, a foreign liquor bottling facility, a brewery, a malt spirit plant, and a brandy/winery unit.
While proponents argue it will generate jobs and boost the local economy, critics are voicing serious objections.
Oasis plans to use agricultural waste, such as broken rice, maize, and tapioca, as raw materials and has promised to employ zero-discharge technology and rainwater harvesting systems.
Despite these assurances, local and political leaders are questioning the environmental impact, especially regarding the region’s already scarce water resources.
Leader of the Opposition VD Satheesan has been particularly vocal, alleging that the company is linked to the Delhi liquor policy scam.
Satheesan also accused the government of holding secretive discussions and bypassing proper tendering procedures.
“The project violates the state’s liquor policy, and the company’s owner has been arrested for their involvement in a scam,” Satheesan said.
He also raised concerns about the use of groundwater in Palakkad, warning that the project could jeopardise both drinking water availability and local agriculture.
Congress Working Committee member Ramesh Chennithala has called for the immediate withdrawal of the approval, accusing the government of corruption and nepotism.
“Why was this company approved without a tender process or consideration for Malabar Distilleries, a state-run enterprise? The Left government needs to explain its special interest in Oasis,” Chennithala demanded.
Local MP VK Sreekandan also voiced strong opposition to the project, calling it an “environmental disaster.” He highlighted that the project would require 24 crore liters of water annually, exacerbating Palakkad’s ongoing water shortage.
“We will launch an agitation to stop this plant,” he declared.
Farmer organisations have joined the opposition, warning that the project could lead to the diversion of water from Malampuzha, a key source for irrigation. This, they say, could severely impact agriculture in the region.
Excise Minister MB Rajesh dismissed the allegations as politically motivated. He defended the project, asserting that it aligns with Kerala’s 2023-24 liquor policy, which aims to reduce dependence on imported Extra Neutral Alcohol (ENA) by boosting local production.
“The approval followed all necessary guidelines. The Opposition is fabricating corruption charges to score political points,” Rajesh said.
He also emphasised that Oasis Commercial Private Limited has significant experience in ethanol production across various states, including Haryana, Punjab, and Madhya Pradesh.
According to Rajesh, the project will bring substantial financial benefits to Kerala, including increased employment opportunities.
Despite the government’s defence, critics remain unconvinced. Chennithala pointed out previous controversies surrounding distillery approvals and questioned whether Kerala’s liquor production aligns with its consumption needs.
He also raised doubts about the status of a similar tapioca-based distillery project in Thrissur, which has been mired in delays.
With the Kerala Assembly session set to begin, the Opposition is preparing to escalate the issue, accusing the Left Democratic Front (LDF) government of prioritising liquor production while ignoring environmental and social consequences.
As protests mount, the fate of the distillery project hangs in the balance.
(Edited by Ananya Rao with inputs from Dileep V Kumar)
