The Odisha Government has issued show-cause notices to 5 liquor companies why their licenses should not be cancelled for the disputes over offer price over beer. The companies have been directed to reply by April 25.
The breweries that are under the scanner are – Carlsberg, United Breweries Ltd, SABMiller India, MP Beer Products Ltd and Devans Breweries Ltd. These companies control over 70% beer trade in the state.
Meanwhile, the Excise Commissioner has written to the Excise Secretary for cancellation of manufacturing licenses of two companies. The decision to issue notices to the breweries, has been taken on the basis of the Odisha State Beverages Corporation (OSBC) after they failed to sign the agreement for supply of beer for 2015-16.
As the companies did not sign the pact and continued to supply beer, the revenue generated by the government from beer trade went down by 86 per cent, the government claimed.
Under the new excise policy, the Odisha government has reduced the offer price of beer companies by 20% and that of IMFL by 10%. At least 31 IMFL companies and 7 beer companies have signed the pact with the government before the expiry of the agreement.