Protest is mounting at Elappully gram panchayat in Palakkad against the proposed brewery plant, as a special gram sabha unanimously passed a resolution against the project on Tuesday. The resolution introduced by the Nombikkode ward member, K V Punyakumari, was taken up in the meeting after a reported attempt by the company representatives to clear the plot led to serious objections from the residents. "A few days ago, the company authorities came in with the machinery and we strongly opposed the move. A petition was signed by nearly 85 people calling for a resolution against the project. We have passed the resolution," said Punyakumari.

The state government approved the project in January 2025 after the Excise Commissioner recommended granting sanctions for the company to establish an ethanol plant, multi-feed distillation unit, Indian-made foreign liquor bottling unit, brewery, malt spirit plant, and brandy/winery plant in Palakkad. The proposal noted that the project will be implemented in four phases.

In the first phase, three automatic and three semi-automatic lines with 8 lakh blending capacity and 16 lakh ENA storage capacity will be established. The second phase will include the installation of an ethanol/ENA production unit. In the third phase, a malt spirit/ brandy/winery plant will be set up. The brewery will come up in the fourth phase. As per the proposal, the firm plans to begin a plant that will function for 330 days a year, using rice, corn, vegetable waste, tapioca starch, wheat, and sweet potato as raw materials.

The project has met with stiff opposition from the CPI, and it involves the conversion of paddy land, for which the Revenue and Agriculture departments, led by the CPI ministers, will have to take the final call. Meanwhile, the Kerala state single window clearance board under the Directorate of Industries and Commerce included the item on the agenda in its meeting held on Tuesday. A final decision on pending clearances could not be made in this meeting.

In March 2025, CPI's Revenue Minister K Rajan told the assembly that the department had initiated proceedings to file a case against Oasis Commercial Private Limited for possessing excess land at Elappully in Palakkad.

The proponent submitted the application for the building permit at Elappully Gram Panchayat on August 31. The panchayat had sought an NOC from the BPCL and also required a certificate from the village office confirming that the project land did not include any puramboke land. The Village Officer has issued an acknowledgement letter confirming that it doesn't include any puramboke land.

The company had also applied to the District Collector, Palakkad in 2024 seeking exemption from the ceiling limit. It was found that the company was in possession of 23.93 acres of land in Palakkad, which exceeds the ceiling limit as per the Kerala Land Reforms Act, 1963. The single window clearance board observed that the ethanol manufacturing serves the 'public interest' by aligning with both national and state policy priorities. Palakkad collector had held two meetings to process the application for exemption and the Oasis company was directed to revise the Detailed Project Report to incorporate employment generation data. This application was forwarded to the Land Revenue Commissioner in July 2025.

Punyakumari said that the plant is being proposed at a place where people depend on tanker lorries for the supply of drinking water. "This is an area where 1600 hectares is under cultivation. It is a question of water and livelihood. They tried to level the land when we have already moved the court," said Punyakumari.