Thiruvananthapuram: The Kerala government has granted water access from the Malampuzha dam to Oasis Commercial Private Limited for a new liquor manufacturing plant in Palakkad, drawing mixed reactions. The company, which plans to produce Indian-made foreign liquor, brandy, and beer in phases, will source water through a new plant set up by the Water Authority at Kinfra Park, Palakkad.

The government order specifies that groundwater will not be used, with rainwater harvesting also part of the company’s plans. Water for the plant, initially requiring at least one million liters per day, will come from the Malampuzha dam, which holds 226 million cubic meters of water. However, concerns arise as the dam primarily supports agricultural irrigation and drinking water for Palakkad city, which needs 400 million liters daily.

The project, requiring a ₹600 crore investment, has been approved without a tender process. The government cites the company’s expertise in liquor manufacturing across five states and the liquor policy directive promoting spirit production. Oasis Commercial purchased 24 acres in Kanjikode two years ago and plans to operate 330 days annually.

While the project promises economic benefits, including job creation and increased revenue, it has faced criticism. Allegations include the lack of transparency about its purpose during initial approvals, the absence of a feasibility study for water allocation, and concerns about environmental impact. The company also faces allegations of corruption in Delhi and waste disposal violations in Punjab.

Minister M.B. Rajesh defended the decision, stating the project complies with existing rules and will bring significant revenue to the state. Yet, opposition voices highlight potential risks to local water availability, especially during years of low rainfall, when Malampuzha’s water supply is often restricted.