THIRUVANANTHAPURAM: The state government has issued an order giving primary permission to Oasis Commercial Private Limited to establish a unit at Kanjikode in Palakkad to produce extra neutral alcohol and other liquor products.

The taxes department in its order dated January 16 has stated that permission has been given based on the government’s decision to promote production of extra neutral alcohol in the state and give permissions to distilleries and units which come forward for it. The decision is based on the 2023-’24 state liquor policy, the taxes department said.

On the basis of the new liquor policy, the department gave permission to Oasis to start an ethanol plant, multi-feed distillation unit, Indian-made foreign liquor unit, a brewery, a malt spirit plant, a brandy unit, and a winery plant. It has also been instructed that only broken rice should be used as raw material for the production of extra neutral alcohol.

The IMFL bottling unit will be set up in the first phase. In the second phase, an extra neutral alcohol and ethanol unit will be set up. In the third phase, a power generation unit will be set up and a brewery in the last leg. The company has also agreed to only use agricultural products from the state as raw materials. “All criteria put forwarded by the MoEF would be met. Kerala Water Authority has given permission to supply water for the production,” the company said.