Congress slams Vijayan over Palakkad brewery plant
On Wednesday, the LDF government permitted Oasis Commercial Private Limited to set up a ₹600-crore worth grain-based distillation and brewery units at Kanjikode in Palakkad district.
Leader of Opposition VD Satheesan on Saturday slammed the government for allowing a private firm to establish liquor manufacturing units in Palakkad and also claimed that the company is involved in the Delhi excise case.


On Wednesday, the LDF government permitted Oasis Commercial Private Limited to set up a ₹600-crore worth grain-based distillation and brewery units at Kanjikode in Palakkad district.
An order issued by A Jayathilak, additional chief secretary, taxes department stated that the 2023-24 liquor policy was amended to encourage the production of extra neutral alcohol (ENA) needed to manufacturer liquor within the state itself.
The project sanctioned to Oasis included multi-feed distillation unit, ethanol plant, IMFL bottling unit, malt spirit plant, brandy/winery plant and a brewery which will be set up in several stages.
Satheesan said the firm faces allegations of contaminating the groundwater table around its units in Punjab.
“One, the firm’s promoter has been arrested once in connection with the Delhi excise case. Two, it has been found that the groundwater table in a four-kilometre radius of its unit in Punjab has been contaminated. The firm threw waste through the borewells and contaminated the ground water. The firm is on the verge of closure in Punjab through strong protests. The excise minister does not have a response to these allegations,” he told reporters.
Satheesan also questioned the government for holding secret discussions with the company and excluding others from the process.
He said the establishment of a distillery unit in Palakkad district, which would require lakhs of litres of water daily, would further push the drinking water-scarce farming region into a major crisis.
He said excise minister MB Rajesh pointed to an imaginary feud between him and senior Congress leader Ramesh Chennithala as part of ducking the questions about the proposed distillery and brewery project.
“There is no feud between Ramesh Chennithala and me. If Rajesh wants, we will even hold a press conference together,” said Satheesan.
On Friday, MB Rajesh called the corruption charges levelled against the project as “politically motivated”.
Senior Congress leader Ramesh Chennithala alleged the CPI(M) was aiming to mint money through kickbacks using the project.
“The excise department has always been used by the CPI(M) as a cash cow. MB Rajesh, excise minister, claims all procedures were followed (in the selection of the firm). But it’s a lie,” he said.
The ruling LDF termed the current row unwarranted and said the administration has only taken decisions as per its stated liquor policy.
“The UDF’s allegations on this issue are baseless. Whether it involves breweries or other institutions, the government acts strictly in accordance with the law,” LDF convenor TP Ramakrishnan said. He reiterated that the government has a general policy in place for such matters and that there is no need to think otherwise.
As part of the proposal of the state government, the firm has been mandated to use rice, corn, vegetable waste, tapioca starch, wheat and sweet potato as raw materials. Such raw materials are among the crops grown in the state and so such a plant will only boost production, the excise commissioner recommending the project said.
With PTI inputs