The Karnataka Wine Board (KWB) on Friday signed memoranda of understanding (MoU) with 10 companies to set up wineries in the state. The KWB would give subsidy ranging from Rs 45 lakh to Rs 50 lakh for greenfield winery projects as per the Karnataka Grape Processing and Wine Policy of 2007.
The MoUs were signed at the inauguration of the three-day wine International Wine Festival (IWF) held here.
The companies that entered into MoU are Nisarga Wines Pvt Ltd, Indira Ambience Pvt Ltd, Rico Wineries, Krishna Valley Wines, Heritage Wines, Elite Wineries, Krishnamriga Wineyard, Dada Winery, Nandi Valley Winery and Alpine Wineries Pvt Ltd.
IWF 2012, co-sponsored by Kappec, ministry of food processing industries, national horticulture board and Karnataka state beverages corporation limited is witnessing the participation of 50 wineries including 10 international wineries.
Speaking on the occasion, Umesh Katti, Karnataka minister for agriculture, urged the chief minister to remove the wine industry from the control of excise department.
He said that by removing controls, wine industry can be promoted and encourage farmers grow more wine variety grapes.
Karnataka is the second largest producer of grapes and wine in the country after Maharashtra. The state horticulture department and wine board have initiated steps to increase the area under wine grape cultivation to 5,000 acres by 2015. Simultaneously, the state aims to double wine production from the present 2.5 million litres.