The Hindu Business Line : Karnataka woos wine industry with new initiatives

Bubbly brew
As per the policy, the Government will set up two wine parks in the State, declare wine production units as `Horticulture and Food Processing Industries' and promote wine tourism.

Pune April 27 The rich dividend reaped through the Maharashtra Government's wine policy has galvanised the Karnataka Government into formulating a policy that comes into effect immediately, and aims at boosting production and consumption of wine in the State.

As per the Karnataka Grape Processing and Wine Policy 2007 announced last week, the Government will set up two wine parks in the State, declare wine production units as `Horticulture and Food Processing Industries' and promote wine tourism, amongst a host of other initiatives.

On a canter

The new guidelines come at a time when the wine industry in the country is on a canter, growing at a brisk annual pace of over 30 per cent. Maharashtra, which accounts for more than 80 per cent of the Indian wine production, chalked out a futuristic policy in 2001, planned wine parks in six districts (two are operational) and even appointed Dr Jaideep Kale as the official `wine-consultant.'

More to the cup

As a result, the number of wineries in the State has burgeoned from four in 2000 to 45 in 2007, and the Narayangaon-Nashik belt, which is home to Chateau Indage and Sula Wineries, the top two vintners in India, is the undisputed wine district of the country.

Noting that the `prospects for wine are huge', the Karnataka policy believes that by "providing congenial atmosphere to the wine industry, giving up thinking that wine is an alcoholic beverage and simplifying the taxation system, it is possible to boost production and consumption of wines."

The State Government has identified areas suitable for cultivation of wine grapes, and decided to set up Nandi Valley wine park in the Bangalore and Kolar districts, and the Krishna Valley wine park in Bijapur, Bagalkot and Belgaum districts. The land for these will be acquired through the Karnataka Industrial Area Development Board.

The inclusion of wineries as horticultural and food processing industry will qualify them to receive all incentives and facilities meant for the latter, including the 25 per cent subsidy offered by the Government of India.

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