Maharashtra govt plans to lift 50 year freeze on new liquor shop licences to boost revenue

Maharashtra govt plans to lift 50 year freeze on new liquor shop licences to boost revenue

In a move aimed at boosting the state revenue, the Maharashtra government is set to lift a 50-year-long freeze on issuing new wine shop licences. According to a report published in Loksatta, the government will issue 328 new licences as per the recommendation of the recently formed committee. If implemented, this will mark the end of a ban in place since 1974 following public resistance.

The move is part of a broader strategy to increase revenue through the Excise Department, which is the fourth-largest contributor to the state’s income, generating around Rs 43,000 crore annually.

With welfare schemes like ‘Mukhyamantri Majhi Ladki Bahin’ demanding significant funding, the government is exploring additional sources of income. If the recommendations of a recently formed committee are implemented, the excise revenue is expected to rise by Rs 14,000 crore per year, Loksatta reported.

However, the decision has sparked controversy and allegations of conflict of interest. A committee to implement these reforms was formed under the chairmanship of Deputy Chief Minister and Excise Minister Ajit Pawar. Critics have raised concerns over this appointment, pointing out that individuals closely associated with Pawar are involved in the liquor industry. A large alcohol manufacturing plant in Baramati, believed to be linked to his associates, has become the focus of this debate.

Industry experts and opposition leaders have questioned the appropriateness of Pawar leading the committee, suggesting it may benefit his close network. Attempts to seek a response from Pawar were unsuccessful at the time of reporting.

The new policy is expected to increase the number of retail liquor shops by 19 per cent across the state. Currently, Maharashtra has 1,713 licensed liquor outlets, a number that has remained unchanged since the 1970s. A previous attempt to increase licences was rolled back due to opposition from prominent socialist leaders like N D Patil and Mrinal Gore.

Under the revised rules, liquor shop licences can now be leased. While purchasing an old license costs nearly Rs 10 crore in the open market, the new licenses will be available for a non-refundable deposit of Rs 1 crore, with the state earning approximately Rs 35 crore annually through licence fees.

Compared to neighbouring states, where there are around six liquor shops per one lakh population, Maharashtra has only about 1.5 per lakh. Other Indian states have seen a consistent 3 per cent annual increase in wine shops, whereas Maharashtra has kept the sector stagnant.

“Given the state’s geography and population, increasing the number of outlets is both reasonable and necessary,” Dr Rajgopal Deora, Additional Chief Secretary of the Excise Department, told The Indian Express.