Good news for beer-lovers. The government has cleared the decks for setting up micro breweries in the State.
Announcing this to reporters on Tuesday, Excise Minister M P Renukacharya said micro breweries could be installed at bars and clubs located on 10,000 sq ft area, lodging hotels with over 100 rooms and star hotels.
“Enjoying fresh beer from micro breweries is a symbol of development. It is high time Karnataka allows such a practice,” the Minister said.
Norms have also been stipulated for setting up the units. For instance, the licencee will have to arrange to check the quality of raw materials and beer produced, by a chemist with specialisation in bio-chemistry or alcohol technology. The beer produced cannot exceed eight per cent in alcohol content.
Major breweries will set up micro-units to promote their brands. The concept is new to India, with only a few brewpubs having been opened in Kerala, Pune, and Gurgaon in Haryana. Karnataka will be the fourth state to open its doors to micro breweries.
The department will impose an annual licence fee of Rs 2.5 lakh, a duty of Rs five per litre of beer and Rs 12.50 as additional duty per litre for the micro breweries.
However, beer manufactured in the micro breweries should be served only to guests and cannot be supplied outside the premises. Already, about 50 applications are pending before the department seeking permission to install breweries. Plans are also on the cards to allow micro breweries in big business establishments and malls, the Minister said.
Revenue collection
The department has collected Rs 5,637 crore revenue till December, 2010 and it is expected to mobilise Rs 2,450 crore in the next three months, the Minister said, adding that the budget target of Rs 8,516.28 crore will be easily achieved.
It has conducted 52,554 raids on illicit liquor manufacturing units, booked 9,178 cases and arrested 3,962 people. About 32,459 litres of illicit liquor have been destroyed this financial year, he said. Renukacharya said 70 cases have been booked against bar owners for charging more than MRP rates.