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All ale the new keg on the block

Karnataka govt amends law to allow pubs, malls and houses to install micro-breweries

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Imagine being able to brew beer at your home; imagine being able to have a swig of fresh lager at a mall or a shopping complex. Sounds improbable? Are we talking about London?

No, we are not. Very soon, in our own Bangalore, beer fans can savour fresh lager in malls, clubs, pubs and bars, and those with deep pockets, in the confines of their home itself.

The state government has decided to issue licence for installing micro-breweries which churn out instant beer on the spot. The excise department has amended the Karnataka Brewers Rules 1967 and the existing licence holders can get a licence for installing a micro-brewery unit in their premises by fulfilling the requisite conditions. Micro-breweries will also come up in malls and mega shopping complexes; and bars and pubs would have the freedom to fix the selling price of this instant beer.

Announcing the decision, excise minister MP Renukacharya said that micro-breweries were very popular in foreign countries as people preferred to savour fresh beer. “Bangalore is a fast developing global city, attracting huge visitors from abroad. Keeping these factors in mind we have decided to give micro-brewery licences for Bars (CL-9) Clubs (CL-4) Lodges and Hotels (CL-7) and Star Hotels (CL-6A),” he said.

The minister said the micro-brewery concept is popular in Maharashtra and Haryana, and since Bangalore has thriving pub culture, the government decided to amend the rules. “Existing licence holders can get micro-brewery licence by paying Rs2.5 lakh fee and they should have at least 10,000 sq feet space or 100 rooms,” explained Renukacharya. “We are expecting a demand for at least 40-50 licences this year. The department is expected to earn Rs5cr per year,” said the minister.

Apart from the licence fee, licence seekers have to shell out Rs5 tax per litre of beer produced. “We will issue licence for micro breweries; after that, we will ensure the quality of beer,” said Renukacharya. “Chemists prescribed by the department will examine the quality of fresh beer and issue certificates,” he added.
At present two types of beer are available in the state—beer sold in bottles or tins and draught beer which is served in mugs. In 2009-10, 122 lakh cases of beer were sold in Karnataka. Till December 2010, 132 lakh cases of beer have been sold, recording a rise of 32%.

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