RS passes bill transferring control over potable alcohol from centre to states

A bill which transfers the control over industries manufacturing potable alcohol from ther central government to respective states was passed on Thursday.

The Industries (Development and Regulation) Amendment Bill, 2015 is based on a 1951 Act which invests the centre with power over the development and regulation of certain industries including those which are involved in the metallurgical, telecommunications, transportation and fermentation (including potable alcohol) sectors.

The latest amendment aims to excludes the production of potable alcohol from the ambit of the Act.

The Supreme Court had ruled on the matter way back in 1997, demarcating the regulation of production of alcohol between centre and states. The court had ruled the centre should regulate the production of alcohol for industrial use and states should regulate the production of alcohol for potable purpose (domestic consumption).  The Bill was a step towards conforming to the Supreme Court’s decision, said Commerce and Industry minister Nirmala Sitharaman.

The bill had been passed by the Lok Sabha in the winter session of Parliament in December of last year. The opposition parties had then slammed the government claiming it was trying to push the legislation in the wake of the Bihar election results which had seen Nitish Kumar announcing a ban on alcohol in the state.

The government has repeatedly stated it wants to change certain other legislation to hand over greater power to the states.“Cooperative federalism can better work with greater, better execution of many of these acts”, Sitharaman said. It will also help address pending litigation over the subject between states and the centre, she added.

The central government would however, continue to be responsible for formulating policy and regulating foreign collaboration ( FDI and foreign technology collaboration agreements) for all products of fermentation industries, including industrial and potable alcohol, according to the proposed law.