Muttiah Muralitharan’s company, M/s Ceylon Beverage, has decided to pull out of its proposed Rs 1,650 crore investment in Kathua, Jammu Kashmir, Deccan Herald reproted.
The withdrawal follows the expiration of incentives under the 2021 National Sector Industrial Policy, which ended in September 2024. The company had initially planned to establish a production plant in the region, but without an extension of the incentives, the plans have been abandoned.
Ceylon Beverage formally applied to back out of the project on March 6, confirming that the plant would now be relocated to Pune. The decision came after a prolonged wait for an extension of the policy incentives, which have yet to be approved by the central government.
The land allocation to Ceylon Beverage in Kathua sparked controversy after it was announced on March 6. The Jammu and Kashmir government had granted a 26-acre plot of land to the beverage company for its manufacturing facility, and opposition lawmakers quickly raised concerns. They questioned the fairness of providing land at no cost to an external company, especially when local residents have struggled to access land for housing under the Prime Minister’s Awas Yojana (PMAY). Mohammad Yousuf Tarigami, a legislator from the CPM, accused the government of violating norms by allowing the land to be allocated without payment.
Contrary to the accusations, official records show that the land was leased to Ceylon Beverage at ₹64 lakh per acre, with an annual lease fee of ₹60,000. The company, which is based in Sri Lanka and already operates a unit in Mysore, is a prominent contract filler for international brands such as Coca-Cola and Nestlé.
The incentives under the 2021 Industrial Development Scheme, which offered capital investment subsidies, GST rebates on plant and machinery, and working capital assistance, were valued at Rs 28,400 crore. These benefits expired in September 2024, and the Jammu and Kashmir government has yet to receive approval from the central government for an extension. With no new incentives on the horizon, Muralitharan’s company chose to relocate the planned investment to Pune, officially withdrawing from the Kathua project.
Ceylon Beverage’s decision marks a significant shift for the company, which had hoped to expand its operations in Jammu and Kashmir but is now moving its investment elsewhere due to the expiration of vital policy benefits.
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