Bengaluru to get more microbreweries as Karnataka relaxes minimum area requirement

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Let it flow. Tech hub Bengaluru is likely to get more microbreweries as the Karnataka government has reduced the minimum area requirement for such breweries from 10,000 square feet to 6,500 sq ft.

It has also allowed microbreweries to "open up to three additional dispensing counters for serving draught beer for the convenience of consumers".

The government notified the Karnataka Excise (General Conditions of Licences) (Amendment) Rules, 2024 on August 16.

The rules define a “microbrewery” as a small brewery with an installed capacity of not more than 3.65 lakh litres per annum. It has to be located in a place with a built-up area of not less than 6,500 sq ft, including a spacious dining hall and parking facility, where draught beer is manufactured and served to customers for consumption within the premises.

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There was a growing demand to reduce the minimum area requirement as space crunch in core areas had forced several microbreweries to shift to the city's outskirts.

The government, under pressure to implement five poll guarantees that cost more than Rs 55,000 crore annually, is hoping to generate additional revenue through changes in the rules.

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Bengaluru is home to more than 80 microbreweries, drawing a large number of customers from among the techies.

"The decision to allow up to three dispensing counters will make it easier for breweries to operate. For instance, breweries that are larger in size found it very difficult to run with just one counter. Even though some were operating multiple counters illegally, now it is legalised," Mukesh Tolani, owner of Toit Brewpub told Moneycontrol.

The government recently allowed all clubs, hotels, bars and restaurants in Bengaluru to serve liquor until 1am daily, aiming to boost the city’s nightlife and its revenue.

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The government is also planning to reduce the price of premium Indian Made Liquor (IML) to align it with the cost of premium brands in Karnataka's neighbouring states. This move aims to boost sales within Karnataka and also to plug revenue losses.

Separately, the amendment has also increased the minimum distance for liquor outlets from state and national highways or service lanes from 220 meters from the middle to 500 meters from the outer edge. However, in areas with a population of 20,000 or more, the minimum distance from state or national highways will be 220 meters.

The distance requirement does not apply to liquor premises within City Municipal Corporation, City Municipal Council, Town Municipal Council and Town Panchayat areas with a population of 3,000 or more.