Kerala CM rejects corruption charges levelled by Congress-led opposition

THIRUVANANTHAPURAM: Kerala Chief Minister Pinarayi Vijayan on Thursday rejected the corruption charges levelled by the Congress-led UDF over various issues, including the government's permission for a private company to establish a brewery plant in Palakkad and the purchase of PPE kits during the time of Covid-19 pandemic.

Speaking during the discussion on the motion of thanks to the Governor's address in the Assembly, the CM denied the allegations of severe corruption and lapses in administration levelled by the UDF.

Rejecting the opposition's corruption allegations regarding the brewery plant, Vijayan stated there was no basis for any suspicion.

"The project will bring an investment of Rs 600 crore to the state, which will create direct employment opportunities for 650 people and indirect employment for around 2,000 people," he said.

He clarified that the initial permission granted for the project falls under the government's sole discretion and does not require consultation with the panchayat.

The approval was issued under the "ease of doing business" category, he added.

The 2023-24 liquor policy of the state is clear and transparent, the CM said, adding the policy aims to produce the required extra neutral alcohol (ENA) and ethanol domestically.

"To achieve this, permission will be granted to eligible companies to establish new brewery units and distilleries," he said, quoting the policy.

Currently, Kerala has 10 distilleries, seven of which were established during the UDF government's tenure. Additionally, two breweries were also set up under the UDF regime, he said.

The CM further said that the government will actively encourage industrial investors to participate in such projects and since these are categorised as industrial investment ventures, no tendering process is required.

Addressing concerns that the brewery unit might impact drinking water availability in the region, Vijayan assured that the government would not allow any situation that would lead to a water shortage.

"The company’s daily water requirement will be met by the Kerala Water Authority (KWA) and rainwater storage tanks," he added.

The CM further said that a pipeline connection to the KINFRA unit at Kanchikode is currently under construction, and once completed, the water supply to the brewery will be ensured.

The Oommen Chandy-led government during 2011-16 decided to provide water for industrial units, he stated.

The chief minister assured the Assembly that the government has nothing to hide and will examine the issue thoroughly.

Responding to the controversy surrounding the procurement of PPE kits, Vijayan stated that the government prioritised saving lives during the unprecedented emergency of the Covid-19 pandemic.

"There was a severe shortage of essential supplies, and it was impossible to predict how long the pandemic would last. Does the opposition suggest we strictly adhere to all the complex stock purchase criteria during such a crisis?," the CM asked.

Vijayan clarified that the government had already provided a detailed and appropriate response to the Comptroller and Auditor General (CAG). He pointed out that the CAG report did not fully consider the shortage of essential goods or the spike in prices during the pandemic.

"When the government contracted a company to supply PPE kits, the kits were not delivered on time. Consequently, the contract was revised, leading to purchases at a higher price. Later, when a local company offered the kits at a lower price, a portion of the original contract was transferred to them to reduce costs," he said.

Regarding the opposition allegations of irregularities in the Kerala Financial Corporation's (KFC) investment in Reliance Commercial Finance Limited (RCFL), Vijayan said it was done based on the decision of its board of directors and by adhering to all prescribed norms.

Earlier, the Leader of Opposition in the assembly, V D Satheesan, alleged that the government had failed miserably in tax collection and pointed to irregularities in pandemic-related purchases.

"During the Covid-19 pandemic, the government purchased PPE kits at Rs 550 per piece from one firm, despite another offering the same kits for Rs 555," he said.

He further claimed that the Comptroller and Auditor General (CAG) report tabled in the Assembly validated the opposition's allegations.

Satheesan also accused the government of corruption in granting permission to Oasis Commercial Pvt. Ltd. to establish a brewery in Elappully panchayat, Palakkad district.

He also alleged irregularities in Kerala Financial Corporation's (KFC) investment in Reliance Commercial Finance Limited (RCFL), promoted by Anil Ambani.

"KFC unlawfully and dubiously invested in RCFL at a time when Anil Ambani’s companies were on the verge of collapse," he said.

The Assembly was adjourned to February 7.