More liquor units in TN, allottees include minister

In a bid to meet growing demand for alcoholic beverages, the Tamil Nadu government has cleared the way for five more firms to set up breweries in the region. This is the second time during its present tenure that the DMK government has given the nod for more liquor manufacturing units to be set up.

The latest sanctions or Letters of Intent (LoIs) to produce beer for consumption in what is regarded as one of India's most tightly regulated and largest liquor markets were issued to various prominent business and film personalities including Union minister S Jagathratchagan's family and an industrialist-cum-Tamil film producer.

Among the beneficiaries of the LoIs is Tropical Breweries which is run by Sharad Kumar who was earlier associated with the Sunnetwork group before playing a crucial role in helping set up the DMK-backed Kalaignar television channel. AM Associates, an off-shoot of Elite Distilleries run by family members of Union minister S Jagathratchagan, and SNJ Distilleries of N Jayamurugan, who co-produced two films, 'Penn Singam' and 'Uliyin Osai', for which chief minister M Karunanidhi penned the script, have also been issued the LoIs. The fourth firm, KALS Distilleries, which will also set up a brewery in the state, is managed by a businessman named S Vasudevan.

"The LoIs, which are mere government sanctions, were issued in the last six months for four firms. We expect they would start production after due process and grant of privilege in about a year," prohibition and excise commissioner, S Thangaswamy told TOI. Industry sources say an LoI has also been issued to Apollo Breweries.

TN's existing policy mandates that only liquor brewed and distilled within the state be sold locally.