Cabinet allows legal alcohol in IT hubs

Revamped policy essential to woo investment, boost tourism

March 30, 2022 07:16 pm | Updated 07:25 pm IST - Thiruvananthapuram

The State government has provided the IT industry with a salve for its long-standing grievance that techies lacked high-spirited socialising venues to unwind after work in Kerala.

Therefore, the Cabinet on Wednesday allowed the sale of legal alcohol in specially designated areas in IT parks to enable employees and their guests to de-stress after duty hours. It justified the potentially politically stormy decision by stating that such amenities were imperative to attract foreign investment.

The Excise department will finalise the modalities for the grant of the liquor licences.

The government wilfully side-stepped the word “pub culture” in its revamped liquor policy for the 2022-23 fiscal to pre-empt the Church-backed prohibitionists and Opposition parties from seeing red.

Dry day

It also decided to maintain the first of every month as dry day to prevent a likely contentious clash between the government and the powerful prohibitionist lobby.

It was unclear whether the liquor policy faced opposition in the Cabinet. Chief Minister Pinarayi Vijayan had repeatedly maintained that vibrant nightlife was vital to wooing IT majors to set up shop in Kerala. The IT department had also backed the suggestion.

For one, auto major Nissan had pointed out that robust partying and socialising avenues that remain open well into the night were essential to establish its global digital hub in Thiruvananthapuram.

The government also sanctioned local beer production and manufacturing of wine and “low-proof” liquor from local produce, except grains.

Tourism destination

The Cabinet also felt that a less restrictive liquor policy would provide a lifeline to the tourism industry decimated by the protracted COVID-19 pandemic. It emphasised rebranding Kerala as a MICE (Meetings, Incentives, Conferences and Exhibitions) tourism destination.

The government will open more liquor shops with walk-in facility to prevent crowding in front of retail outlets. It has offered a tax cut for liquor manufacturers who forsake plastic bottles for ones made of glass.

The Cabinet also gave bars and wine and beer parlours a reprieve by agreeing to set off the rental for COVID-19 years from the liquor licence fee payable next fiscal. The government also sanctioned new production lines in State-owned distilleries and blending units.

Leader of the Opposition V. D. Satheesan said the United Democratic Front would study the liquor policy and respond later.

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