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THIRUVANANTHAPURAM, Feb. 14

THE Minister for Finance and Excise, Mr K. Sankaranarayanan, has said that the State Government would soon come out with its liquor policy for the coming fiscal.

Responding to a point of order raised by a member of the Opposition in the State Assembly on Friday, the Minister said the Government would finalise the liquor policy only after consultations with the trade unions, prohibition activists and other concerned sections of the society.

No slashing of duty: The Minister clarified that the State Government had no plans to reduce the prices of Indian Made Foreign Liquor sold through the outlets of the Kerala State Beverages Corporation. IMFL at present attracts 100 per cent excise duty and 90 per cent sales tax.

Any reduction in these rates would adversely affect the State's revenue, he said.

The Government, however, proposed to increase the number of IMFL sales outlets from the present 300. The exact number would be announced in the liquor policy for 2003-04.

Curbs on deficit: The State Government plans to bring in legislation with a view to containing its mounting revenue deficit.

In a written reply, the Finance Minister told the Assembly that the proposed legislation would seek to ensure greater financial discipline. The rapid increase in revenue deficit during the 1998-2001 period has now been reversed thanks to the belt-tightening measures taken by the State Government supported by an intensive revenue collection drive.

The Government is also considering a legislation that would seek to put a cap on the grant of Government guarantee on loans, the Minister added.

Sugar mill transfer: The State Government is working on a proposal to transfer control of the public sector Chittur Sugar Mill to the Kerala State Beverages Corporation (Bevco), according the Industries Minister, Mr P. K. Kunhalikkutty.

Responding to a calling attention motion, Mr Kunhalikkutty said the Industries Department had already expressed its willingness to transfer control of the sugar mill to Bevco and discussions on the subject had been initiated with the Excise Department.

The sugar mill has been running on loss since 1997. The company had incurred a loss of Rs 2.03 crore in 2000-01. The proposal to hand it over to Bevco had been mooted for the purpose of converting it into a distillery, the Minister said.

Some of the older units in the Kanjikode industrial area in Palakkad district were ailing on account of a combination of adverse factors. Tatafone, for instance, has been affected for want of technology upgradation. Certain other units were also faced with the similar problems. The trade unions, the Minister said, were rendering all help to the State Government in resolving the problems of the industrial units in the area.

The Minister said the Government was aware of the problems of the public sector Malabar cements and was making special efforts to save the company, which has been facing marketing problems in Tamil Nadu.

Coir R&D centre: The Agriculture Minister, Ms K.R. Gowri, informed the House during question hour that the State Government would set up a research and development centre for technological upgradation and diversification of the coir industry.

The initial funding requirements would be taken care of in the State Budget for 2003-04 and Central assistance would be sought for the same. The State Government had initially proposed to set up the facility under the Indian Council of Agricultural Research (ICAR) but it did not work out that way since coir processing was subsequently declared as an industry.

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