Alcohol to be served in IT parks; more production units for IMFL, beer...: Understanding Kerala's new liquor policy

The Kerala government has issued a notification permitting the sale of alcohol in IT parks across the state. As part of a broader effort to make Kerala more investment-friendly, the government has amended the Foreign Liquor Rules to enable this change.

The state's new liquor policy introduces several key reforms, including provisions for establishing more production units for Indian-made foreign liquor (IMFL) and beer.

Additionally, the policy offers new concessions, such as a special one-day permit system for star hotels and resorts, allowing them to serve liquor on the first day of the month—a designated dry day in Kerala—during business meetings, international conferences, and other official gatherings.

In a bid to boost tourism and the conference economy, the new liquor policy now permits the serving of alcohol aboard luxury cruises.

A notable feature of the policy is the long-awaited implementation of liquor service in IT and industrial parks—a move first proposed in the previous policy, but realised only now.

To serve liquor within IT parks, establishments must obtain a Foreign Liquor Information Technology Park Lounge Licence from the Excise Commissioner. The annual license fee is set at Rs 10 lakh, with serving hours restricted to 12 noon to 12 midnight.

Both government and private entities are eligible to apply, but only one license will be issued per establishment—and it will be registered in the name of the IT park developer. Alcohol may be served solely to official guests and visitors of IT companies.

Interestingly, the dry day exemption has not been extended to IT parks. Liquor sales will remain prohibited on the first day of each month and other government-declared dry days.

Only vendors with an FL-9 license can supply foreign liquor to these licensed lounges. Moreover, alcohol must be served in a building separate from the office space. The sale or storage of liquor outside the licensed premises is strictly forbidden.

The policy applies to state-run IT hubs like Technopark, Infopark, and Cyberpark, as well as public-private ventures such as Kochi Smart City and private IT parks.

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