Thiruvananthapuram, Jan 17 (PTI) Kerala Excise Minister M B Rajesh on Friday termed as "politically motivated" the opposition Congress' allegations of corruption with regard to permission given to a private liquor company to start a brewery in Palakkad district.

The minister said that both Leader of Opposition in the assembly V D Satheesan and senior Congress leader Ramesh Chennithala were "competing with each other" to level the allegations "for political gains" and to "get an advantage within their party".

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Both Congress leaders on Thursday questioned the permission given by the Left government to Oasis Commercial Pvt Ltd to start a brewery in Palakkad district and alleged that there was corruption behind the decision.

Rajesh said that the private company came to the government with an investment proposal and permission for the same was granted in accordance with the existing rules and regulations.

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"There is no need to call for a tender in case of an investment proposal," he said.

He also asked whether licenses are given to bars and hotels by calling tenders or whether distilleries were allowed in the past through the tender process.

Rajesh said that the government has clearly stated that it will permit spirit and ethanol production in the state.

He also said that petroleum companies are in need of ethanol to blend it with fuel and the state was going to produce it by giving permission to Oasis.

"This company has been shortlisted by the Centre for ethanol production," he said.

"So, the facts are clear. It is due to lack of any important issue that they are raising this matter," he added.

Satheesan and Chennithala have demanded withdrawal of the cabinet decision permitting a brewery and distillery unit at Kanjikode in Palakkad district.

They have alleged corruption behind the decision, which they claimed was taken without considering the interests of the people and the environment.

Satheesan had claimed that liquor manufacturing was not allowed in the state for the last 26 years and if anyone applied, the usual practice was to refuse permission on the grounds that it was not allowed due to a policy decision taken in 1999.

Both Satheesan and Chennithala had also contended that Palakkad, which already faces severe water shortage, will be affected even more if the brewery unit is permitted as it will use up around 5 crore litres of groundwater every year in the liquor manufacturing process.

The cabinet had on Wednesday granted approval to Oasis to start the plant at Kanchikode in Palakkad district, subject to compliance with the existing guidelines and conditions.

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