Alcohol ban: Kerala government approves move to close down bars

Thiruvananthapuram: In a swift action, a day after Congress-led ruling UDF recommended shutting down over 700 liquor bars attached to hotels below the five-star categories, the Kerala Government on Friday approved the new liquor policy and also imposed a five per cent cess on liquor.

Announcing the decision at a press conference on Friday, Chief Minister Oommen Chandy said the Cabinet would formally ratify the decision in its next meeting.

On another UDF proposal to declare all Sundays as dry days apart from the existing dry days, which include the first day of every month, he said.

The Sunday Dry day would commence from October 2 next year. The five per cent cess on liquor sold through Beverages Corporation outlets would be used to set up a Fund for rehabilitation of employees who lose jobs due to closing down of the bars and for creating awareness against liquor among the people, Chandy said.

A total of 418 bars already remained closed, and the other 312 bars also would be closed this financial year, he said.

Stating that the new liquor policy was a final phase to achieve UDF's goal of taking the state to total prohibition in ten years, he said government had received legal advise that the now functioning 312 bars also could be closed during the financial year itself after completing certain financial formalities on licence fees.

The new liquor policy makes it clear that only five-star hotels will have bars to sell Indian Made Foreign Liquor.

The decision, taken by the UDF leadership meeting Presided by Chandy, ended a long-drawn feud in the state unit of the Congress and the coalition as a whole over the question of renewing licences of 418 bars which were found to be lacking in quality.

On UDF recommendation of phasing out Beverages Corporation outlets, Chandy said ten per cent outlets would be closed down every year to wipe out them in 10 years and this would come to around 39 shops per year.

Chandy also said new liquor policy was a unanimous decision of the UDF and has the support of all sections in the society.

A portion of the revenue of Beverages Corporation, the sole agency for the sale of Indian Made Foreign liquor, would be used for the formation of Kerala Alcohol Education, Research, Rehabilitation and Compensation Fund (KAERCF).

Arranging awareness campaigns against the use of liquor, to collect data regarding this, giving compensation to those whose lives are shattered due to excessive consumption of alcohol were the aims, he said.

The New UDF liquor policy received accolade from different sections in the society. A group of housewives met Chief Minister at his official residence to express their solidarity with the new policy.

Meanwhile, KPCC President V M Sudheeran, who had stood firmly against renewing licences to 418 bars, gave full support to the government in its new policy.

After the ban on arrack by the then A K Antony Ministry two decades ago, this move has been seen as of a major initiative to make Kerala 'a total liquor free state.

Chandy said three reasons had been cited as the major hitches for the successful implementation of the total liquor ban.

'Revenue to the government from the sale of liquor, effect on tourism industry and flourishing of illicit liquor trade", he said but added 'I am not agreeing with the first two points'.

The loss to the society due to liquor consumption was manifold more than the revenue earned from the liquor sale, he said.

Meanwhile, State Finance Minister K M Mani put the total revenue loss on various counts due to the new liquor restrictions at Rs.1,813 crores.

Talking to reporters here, Mani, leader of KC-M, the third largest partner in the UDF, said even though the new policy resulted in revenue loss to state exchequer, the decision was taken unanimously considering the 'well-being' of the society.

In coming years, the revenue loss would be much more than this, he added.

The government was expected to earn Rs.250 crore on the five per cent cess on liquor for setting up the Fund for rehabilitation of workers in bars and anti-liquor campaign.

To close down the now functioning 312 bars, an amount of Rs.39 crore was required to repay their licence fees, he said.