Kerala’s leader of opposition, V.D. Satheeshan, stepped up his allegations against the LDF government in the brewery issue by stating that the government had invited the controversial firm Oasis to the state.
Satheeshan quoted a document submitted by the company to the Kerala Water Authority on June 16, 2023, to substantiate his point. Oasis states in this document that the firm “received an invitation for setting up an ethanol plant under the NITI Aayog—Ministry of Petroleum and Natural Gas initiative for Ethanol Blending in India 2020-2025 which provides an indicative target of 20 per cent ethanol blending under the Ethanol Blended Petrol program by 2030”.
The document notably refers to the “invitation of oil companies for signing an expression of interest agreement with upcoming ETHANOL plants in the state of Kerala for the supply of Denatured Anhydrous Ethanol to Oil Marketing Companies”.
Earlier, Chief Minister Pinarayi Vijayan had pointed out that the decision was taken in accordance with the 2023-24 liquor policy, designed to ensure the domestic production of extra neutral alcohol and ethanol. He also emphasized that the approval of such industrial projects was in line with Kerala’s “ease of doing business” policy. The CM also noted that the new liquor policy allows for the establishment of new brewery units and distilleries, with no tendering process required for such industrial investments.
However, the letter given by Oasis to KWA suggests that the company received the invitation from the Kerala government before the new liquor policy was approved by the government on July 26, 2023. Satheesan raised doubts about the logic behind the state government’s alleged invitation even before the new policy was approved.
“The excise minister's web of lies is now collapsing like a house of cards,” said Satheeshan.
“The minister stated that the licence for the manufacturing unit was granted based on an application submitted by Oasis Company after changes were made to the liquor policy. When we questioned why no other distilleries, including those in Palakkad and the rest of Kerala, were aware of the opportunity to start a liquor manufacturing unit—except for Oasis, which operates in Madhya Pradesh and Punjab—the minister reiterated that the approval was granted solely based on their application.”
Satheeshan raised the allegation that the minister also lied that the company was granted approval because it had received recognition from the central government-backed Indian Oil Corporation. “In reality, Oasis had applied to the Kerala Water Authority merely to participate in IOC’s tender,” said Satheeshan. “Yet, the minister claimed that Oasis was granted approval for the liquor manufacturing plant because it had IOC’s recognition. In reality, the state government had invited Oasis even before the IOC granted any approval.”
Meanwhile, Oasis refuted the allegations, stating that it did not come to Kerala based on any government invitation. The firm reportedly claimed that its intention for coming to Kerala was to set up an ethanol manufacturing unit and that the new liquor policy was introduced while it was already in the process.