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INDIA
The excise department has invited 239 applications for composite liquor vends under a new policy, increasing fees and reducing total liquor shops from 535 to 501.
The excise department has invited 239 applications for composite liquor vends in the district for the upcoming financial year as part of the new liquor policy. This policy aims to restructure the retail liquor business in the state.
A key change introduced in this policy is the concept of composite liquor shops, where both beer and Indian Made Foreign Liquor (IMFL) will be sold together. Currently, the city has 146 IMFL shops, 140 beer shops, 234 country liquor shops, 29 premium liquor vends, and 27 model shops. Under the new system, IMFL and beer shops will be merged into composite liquor vends. However, model shops will remain unchanged, and country liquor shops can upgrade to composite shops by adding a beer counter.
For the first time in six years, fresh applications have been invited for liquor shop licences, allowing new business players to enter the market. In the past six years, only licence renewals took place. The existing licences will expire on March 31, 2025. The total number of liquor shops in the district has been reduced from 535 to 501. The new allocation includes 239 composite liquor shops, 234 country liquor shops, 27 model shops, and one bhang shop.
The application process for the 501 liquor shops began on February 14, and interested applicants can apply between February 17 and 27. The first phase of the e-lottery for shop allotment will be conducted on March 6, according to district excise officer Subodh Kumar Srivastava. The department will also renew licences for the 29 premium liquor vends in the district.
Increased Fees for Liquor Shop Applications
The new policy has significantly increased application fees for liquor shops, in some cases nearly doubling them compared to previous years. The non-refundable fees are as follows:
Country liquor shops: USD 40,000 - USD 65,000
Composite liquor shops: USD 55,000 - USD 90,000
Model shops: USD 60,000 - USD 1,00,000
Last year, fees ranged between USD 35,000 and USD 60,000. The increase is expected to generate higher revenue for the excise department, along with earnings from licence fees.
The excise department has also imposed a restriction, allowing each person to own a maximum of two liquor shops across the state. Additionally, the locations of some liquor shops may change once the new licences are issued.
According to Srivastava, the increase in fees is aimed at ensuring that only serious business applicants participate in the bidding process.