The government will table an amendment Bill in Parliament to transfer the authority to regulate potable alcohol to states from the Centre, following the law commission recommendations.
The Cabinet on Wednesday cleared the Bill to amend the First Schedule of Industries (Development and Regulation) Act, 1951 in this regard.
The existing heading '26 Fermentation Industries' in the First Schedule of the Act will be substituted with the heading '26 Fermentation Industries (other than potable alcohol)'. With this amendment, a long-standing confusion about the jurisdiction of Central and state government on alcohol - potable and industrial - has been resolved. It will ensure industries engaged in manufacturing alcohol meant for potable purposes will be under the total and exclusive control of states in all respects.
This should also assign accountability to states for manufacture of potable alcohol. The amendment has been necessitated in view of the judgement delivered by the Supreme Court in 1997 in the case pertaining to Bihar Distillery vs Union of India that industries engaged in manufacturing alcohol meant for potable purpose shall be under the control of the state and controls concerning industrial alcohol shall be under the jurisdiction of the Centre. Subsequently, the Law Commission had recommended to substitute item 26 of the first schedule of the Act.
