Thiruvananthapuram: The Kerala government has decided to promote coconut palm nectar (Neera) again after its earlier project launched amid much fanfare a decade ago fizzled out.
The agriculture department has decided to prepare a master plan for the revival of the Neera sector and to implement a financial rejuvenation plan. However, the government has not set aside even a single penny for the Neera project in the current financial year.
Agriculture minister had made it clear in the last assembly session that there was no project proposal before the government for the revival of Neera production companies.
The agriculture department's reconsideration comes amid reports that the government is going back on a project for which the farmers and the government had already spent more than Rs 100 crore.
Agriculture Minister P Prasad has already held preliminary discussions with the Central Plantation Crops Research Institute (CPCRI). The second round of discussion is scheduled for next week.
The minister will also hold discussion with the incumbent additional chief secretary T K Jose who was the Coconut Development Board chairman when the Neera scheme was formulated in the state in the 2015-16 period.
Though 29 companies had registered with Coconut Development Board for Neera production, only 11 companies actually went ahead with the project. At present only one company based in Kaipuzha Kollam is producing Neera for commercial purposes. Eleven companies, which took loans from Kerala Financial Corporation and installed plants, have liabilities worth of Rs 20 crore.
The authorities will discuss with the finance department about sanctioning a revival package and also with the industries department whether it will be able to give support as an industrial venture.
Though the agriculture director was entrusted with the task of examining the feasibility of the project three months ago, he is yet to submit his report.
The government along with farmers and Coconut Development Board had invested Rs 100 crore for the Neera project. The government had sanctioned Rs 35 crore for subsidy for installing the plant, share capital and training of technicians.
"Masterplan and financial revival package would be prepared after studying whether Neera scheme can be continued as a profitable venture and how. No money was set aside in the current financial year since there is no point in giving assistance for the scheme without any specific plan," Agriculture Minister P Prasad stated.
Earlier it was touted that Neera sales would touch an annual turnover of Rs 50,000 crore as there would be many consumers once it is extracted, bottled and sold for Rs 20 in bottles or Tetra Paks from kiosks. But the nascent industry didn't take off as was expected owing to unfriendly regimes that had vested interests to promote the well-entrenched toddy industry in the state.
