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Opening of Microbrewery in Karnataka



If someone wants to open a Pub/Microbrewery in Karnataka, what are all the govt permissions are required


Contents

1. Introduction

2. Meaning of Microbrewery

3. Documents

4. A grant of license for a Microbrewery

5. Form 4 – Application for microbrewery

6. Form 5 – Conditions for granting the microbrewery licence

7. FSSAI

8. Parking space



1. Introduction


The Karnataka Brewery Rules, 1967 was amended to allow bars, clubs and hotels to open microbreweries. Apart from a one-time permit fee of Rs 2.5 lakh,microbreweries are required to pay an excise duty of Rs. 17.5 per litre. The Rules also specify that the minimum space between the floor and ceiling of the microbrewery should be 14 feet.


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.



2. Meaning of Microbrewery


It means a small brewery situated in a place on the premises of CL-4 or a place on the premises of CL-6A or CL-7 or CL-9 licenses issued under the Karnataka Excise (sale of Indian and foreign Liquors) Rules, 1968 where draught beer is manufactured and the same is served to their customers for consumption within the premises with an installed capacity of not more than one thousand litres per day.



3. List of Documents to be submitted for grant of the brewery in Karnataka[1]


Application in the prescribed form


· Challan for having paid the licence fee (Rs.27,00,000 per annum) + 15 % Additional licence fee (Rs. 4,05,000 per annum) Bottling licence fee Rs.1,00,000 per annum, Additional licence fee for the sale of bulk Beer Rs.2,40,000 per annum + 15 % on this amount

· Project report with flow chart

· Blueprint of the plant and premises in triplicate

· Land documents (Katha conversion certificates)

· Clearance Certificate issued by Karnataka State Pollution Control Board.

· Record or documents showing the availability of resources (water and electricity)

· Memorandum of Association and Articles of Association or Partnership Deed whichever is applicable

· List of directors/Partners

· NOC/Licence issued by Inspector of Factories and Boilers

· Undertaking as per Rule 5(B) of Karnataka Excise (Brewery) Rules 1967

· PAN card from the IT department

· Income Tax clearance certificate

· NOC from the Labour department

· GST Registration Certificate

· Any other licences or documents obtained from the Commercial Taxes Department or Department of Industries and Commerce

· FSSAI licence issued by the Food Safety & Standards Authority of India

· Occupancy Certificate - The Occupancy Certificate (OC) is a document issued by a statutory authority (such as BBMP and BDA in Bangalore) and it gives the applicant (builder) permission to “occupy” the property.



4. A Grant of license for a Microbrewery. –[2]


a) Anyperson who possessesa CW4 or CK6A or CA 7 or CW9 licence and is desirous of obtaining a licence for a Microbrewery shall apply to the Excise Commissioner in Form 4 through the Deputy Commissioner. The Application shall be accompanied by a treasury challan for having credited the fee specified in sub-rule


b) Full description of the premises, utensils and installed capacity of the Plant per day. The detail In the application shall be checked either by the Deputy Commissioner or some other Officer duly authorized by him onhis behalf, who shall certify the fact. if he finds it correct, and forward it to the Commissioner.


The Commissioner may grant a Microbrewerylicence in Form 5, subject to the following conditions, namely:-


In the case of,-


· CL-7 licence unless the licensed premises is having a minimum of 100 double rooms incorporation areas and 50 double rooms in other areas;


· CL-9 licence unless the licensed premises 1s have minimum 1O,OOO S q- Ft. area and spacious dining hall and parking facility; and


· CL-4 licence unless the licensed premises is having minimum I 0,OOO Sq. Ft. area and spacious parking facility;



Inadditionto conditionsstipulatedunderthe KarnatakaExcise (Sale of Indian and Foreign Liquors) Rules. 1967.


a) The fee for the grant of a Microbrewery licence shall berupeestwo lakhsper year and an additional licence fee of rupees equal to fifteen percent of licence fee.


b) The licensee shall arrange to checkthe qualityof raw materialsused and the liquorproduced in the microbrewery by a chemist holding a degree in science with chemistry as one of the subjects preferably organic chemistry or bio-chemistry or specialization in alcohol technology.


c) The beer so produced in the microbrewery shall be released for sale only after the Chemist certifies that such beer is for human consumption.


d) The licensee shall arrange to draw the beer samples once ineverymonthand forward the same to the laboratory for analysis. The report so obtained thereon shall be displayed on the premises of Microbrewery.”



5. Form – 4 (Application for grant of Microbrewery)


To TheExciseCommissionerinKarnataka,Bangalore

· Name/s oftheApplicant/switha fullpostaladdress.


· TheAmountofcapitalproposedtobeinvested

· Thename anddescription oftheplaceinwhichtheMicrobreweryissituated

· Whetherthe projectreportissubmitted

· Whethera clearancecertificateisobtainedfromPollutionControlBoard/EnvironmentDepartment

· Descriptionsofvesselsandotherpermanentapparatus.

· ProductioncapacityoftheMicrobreweryperday/perannum.

· WhetherApplicanthasenclosedthetreasurychallanforhavingcreditedtheprescribed

· licensefeesinfavouroftheGovernment.



6. Form 5 – Conditions for Microbrewery License


· The licensee shall be bound by the provisions of the Karnataka Excise Act, 1965. Notifications, Rules and orders made or issued thereunder and the Karnataka Excise Brewery) Rules, 1967


· The Licensee shall observe such rules as may be prescribed by the State Government or such 4 Instructions and orders as may be issued by the Excise Commissioner from time to time in regard to the control of the manufacture, possession and serving.


· The License shall be bound by such orders as may be passed by the State Government or the Excise Commissioner concerning the process of manufacture to be adopted and the standards and quality of beer to be produced and served.


· The Licensee shall provide a saccharometer and a thermometer of a kind to be approved bythe Excise Commissioner for testing the gravity of wort in the Brewery. A Hydrometer shallalso be provided for testing the strength of the drought Beer.


· The alcohol content of the beers produced and supplied to the customers shall not exceed 8%V/V.


· The pH, temperature and graves of the brews up to the maturation stage should be recorded and the same is subject to inspection as and when called for by a competent authority.


· The premises are to be maintained neat and clean with proper ventilation, and lighting and to meetall safety and emergency standards and the beer dispensing system including glasses.serving tables etc to be maintained hygienically at all times.


· Periodic fumigation by certified persons of the storage facility as well as the premises to bedone on a routine basis and records maintained.under no circumstances is beer or any alcoholic drinks to be served to under-aged persons.


· The payment of the licence fees and excise duty, as specified, is to be paid in advance.


· The licensee shall strictly maintain the timings of serving beer to the customer between 10.00AM and 11.30 PM.


· The licensee is prohibited from manufacturing any of the Beers, save the ones speciallyinstructed.


· The licensor shall issue beer only to the visitors of the licensed premises.


· The account of the transactions in the Microbrewery relating to the issue shall be maintained insuch manner as may be required by the Excise Commissioner.


· The license shall furnish any statistics relating to the manufacture and the sale of Beer that may be required when called upon to do so by any competent authority.


· For any breach of the rules or the conditions of the license, the Excise Commissioner mayafter giving a fortnight's notice to the licensee suspend or cancel the license. The licensee shall not be entitled to any compensation on account of such suspension or cancellation


In State of Tamil Nadu and Ors. Vs K. Balu&Anr. -


The court, while ordering prohibition along the highways, had maintained that no liquor stores should be allowed within a distance of 500 metres from the outer edge of the highways and service lanes or should be visible from the highways.


As per the orders of Hon’ble Supreme Court, the Ministry has requested all the State Governments and UTs, from time to time, to take necessary action for implementation of the order(s) of Hon’ble Supreme Court.



7. FSSAI for Microbrewery


Food Safety and Standards Authority of India(FSSAI) lays down the hygiene and safety standards that ensure the availability of safe and quality food in any food business.


It is mandatory to take FSSAI Basic Registration as per the law. Small businesses or startups having annual turnover below Rs.12 lakhs can apply for basic FSSAI Food safety registration. As operations scale up and turnover reaches Rs. 12 lakh bar, the basic registration will need to be upgraded to state license.



Required Documents for State FSSAI License

· Rental Agreement of Business Premises.

· ID Proof of the Concerned Person (Aadhaar Card / Driving License / Passport / Voter ID)

· If any Government Registration Certificates ( Company Incorporation Certificate / Firm Registration / Partnership Deed / Pan card / GST Registration Number / Shop and Establishment Registration / Trade License)

· If the applicant is private limited company or partnership firm then they should provide MOA & AOA or Partnership deed copy

· For applying State License any One of the following certificate is compulsory ( Trade license, Shop and Establishment Registration, Panchayath License, Corporation License , Municipality License )

· Nature of Business..

· Fssai declaration form



8. Parking Space


The Karnataka High Court directed that no commercial establishments be allowed on roads less than or equal to 40ft. width, post the year 2012.


 
 
 
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