The Kerala government’s decision to allocate water from the Malampuzha dam to Oasis Commercial Private Limited for a liquor manufacturing plant in Palakkad has sparked both praise and criticism. The company plans to produce Indian-made foreign liquor, brandy, and beer in phases, utilizing water supplied via a new plant established by the Kerala Water Authority at Kinfra Park, Palakkad.
While the government order prohibits groundwater use and mandates rainwater harvesting, the plant’s estimated daily water requirement of at least one million liters has raised concerns. The Malampuzha dam, which holds 226 million cubic meters of water, supports critical agricultural irrigation and drinking water supply for Palakkad city, requiring 400 million liters daily. Critics warn of potential strain on resources, especially during dry spells when water levels are already limited.
The project, with an investment of ₹600 crore, has been greenlit without a tender, citing the company’s expertise and alignment with Kerala’s liquor policy. Oasis Commercial, operating in five states, purchased 24 acres in Kanjikode two years ago. The plant is expected to function 330 days a year, promising economic growth, job creation, and revenue for the state.
However, the initiative faces backlash over alleged lack of transparency during its approval process, absence of feasibility studies for water allocation, and concerns over environmental sustainability. Past allegations of corruption and waste management violations against the company have also surfaced, amplifying opposition.
Defending the project, Minister M.B. Rajesh stated it adheres to existing regulations and would significantly benefit Kerala’s economy. Nonetheless, critics emphasize the risk of depleting local water resources and urge a reevaluation of priorities, particularly in low rainfall years.
