Resolving long-standing confusion about the jurisdiction of the centre and the states on alcohol, the union cabinet on Wednesday approved the transfer of authority to regulate potable alcohol to the states, as recommended by the Law Commission.
The union cabinet has given its approval to the amendment in the First Schedule of Industries (Development and Regulation) Act, 1951 to transfer the authority to regulate 'potable alcohol' to states as recommended by the Law Commission in its 158th Report," the commerce ministry said in a release here.
"A bill to this effect will be introduced in parliament," it said.
"It will ensure that industries engaged in manufacturing alcohol meant for potable purposes shall be under the total and exclusive control of states in all respects," the statement added.
The measure is also designed to make the states accountable for manufacture of drinking alcohol, the government said.