A day after the expiry of the deadline to sign the requisite agreement with it, the Odisha State Beverages Corporation (OSBC) urged the Government on Friday to cancel the licences of five breweries which failed to sign the agreement for supply of beer for 2015-16. The move came after the five companies, Carlsberg, United Breweries ltd, SABMiller India, MP Beer Products ltd and Devans Breweries ltd, failed to sign agreement with the Government before the deadline.
The corporation has moved the Government for cancellation of factory licences and label registration of the breweries run by the five companies, which are opposing the reduction in offer price of beer to the extent of 20 per cent in the new State Excise Policy. The OSBC has urged the Excise Commissioner and Secretary to initiate the process for cancellation of the licences. If licences are cancelled, these companies will not be allowed to produce alcoholic beverages, which accounts for more than 70 per cent of the market share in the State.
“Either they withdraw the label registration and license or cancel it. The commission has recommended cancellation of the licence to the Government,” OSBC MD Dwijaraj Kar said. The State Government claims that excise revenue collection has been affected as the companies are supplying beer without signing the pact. With this, the revenue has dipped 86 percent since the start of this financial year, sources said. Meanwhile, Excise Minister Dr Damodar Rout didn’t rule out a revision of the beer offer price.
“They have submitted a memorandum citing that they would incur losses with the new excise policy. The committee constituted to look into this would decide on it. If their claims are found to be true, we would reconsider the decision or else they would be forced to abide by the new policy,” Rout said. As per the new Excise Policy, the Government has reduced the offer price of beer companies by 20 percent and that of IMFl by 10 percent.