After a long truce, old foes Andhra Pradesh Chief Minister N Kiran Kumar Reddy and Andhra Pradesh Congress Committee (APCC) chief Botcha Satyanarayana are at it once again.
After a long truce, old foes Andhra Pradesh Chief Minister N Kiran Kumar Reddy and Andhra Pradesh Congress Committee (APCC) chief Botcha Satyanarayana are at it once again.
Botcha, whose family has entrenched interests in the state's lucrative liquor industry is angry with Kiran Reddy for permitting distilleries to enhance liquor prices. Botcha is worried that any decision benefiting the distilleries would be understood differently by people and as a result the party's image might take a hit. He said: “As APCC president I, will tell the chief minister not to take any decisions which will damage the electoral prospects of the Congress across the state.”
The APCC chief, whose family used to have 27 per cent share in 37 liquor shops in north Andhra region till recently, is now planning to take up the issue with Reddy. Botcha's war with Reddy goes back along way: earlier this year, after Reddy ordered a crackdown on liquor vendors and officials involved in a multicrore excise scam he had even shot off a letter to Ghulam Nabi Azad, accusing the CM of harassing him by organising raids on his liquor shops.
Though the hike may not pinch the tipplers since it will be borne by the government—around `1,400 crore—Botcha does not see any reason why distilleries should be allowed to hike the prices. The APCC chief felt he did not mind if the state government increases excise duty and trade margin on liquor because the additional revenue will only go back to the people in another form like funds for tuition fee reimbursement for students or social welfare programmes.
Botcha’s supporters say that the government had increased excise duty and trade margin only to benefit the distilleries. The increase will net the government an extra `4,500 crore a year from which it will be paying the distilleries.
Excise Minister K Parthasarathy, who is close to Kiran Reddy, dismisses Botcha’s argument as far fetched. “We are not allowing the distilleries to hike liquor prices irrationally. The government has an agreement with them that the prices could be revised either upwards or downwards once in every three years. This time they sought an increase that on select brands not consumed by the poor,” he said adding that he would speak to Botcha and clarify all his doubts.
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