Context:
Supreme Court in its recent Verdict cleared that State’s power to make laws on industrial alcohol can’t be taken away.
Industrial Alcohol:
- Primarily an impure form of ethanol, made from raw materials like sugarcane, grain, and wheat.
- Uses – Solvent, Synthesis of organic compounds and Fuel source for lamps and engines
- Contains added substances to make it undrinkable, preventing unauthorized consumption.
- Legal and Regulatory Framework –
- Listed under Industries (Development and Regulation) Act, 1951 (IDRA)
- State List (Entry 8) – States can legislate on the manufacture, possession, transport, purchase, and sale of “intoxicating liquors”.
- Union List (Entry 52) & Concurrent List (Entry 33) – Mention industries under central control for public interest.
Recent Supreme Court Verdict:
- Recent ruling held that Industrial alcohol is classified as “intoxicating liquor” under Entry 8 of the State List, allowing states to regulate and tax its production.
- The 1990 Synthetics & Chemicals Ltd vs State of Uttar Pradesh ruling, which limited “intoxicating liquor” to potable alcohol, was set aside.
Source: The Hindu
Previous Year Question
Consider the following statements:
1. Maize can be used for the production of starch.
2. Oil extracted from maize can be a feedstock for biodiesel.
3. Alcoholic beverages can be produced by using maize.
Which of the statements given above is/are correct?
[UPSC Civil Service Exam – 2014 Prelims]
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (c)
