Delhi govt approves excise policy extension, approval awaited

The extension was approved to enable a smooth transition from the existing to the old policy under the which government ran almost 60% of the liquor stores

The Delhi Cabinet late on Sunday approved the extension of the excise policy 2021-22 for a month till August 31 and sent the proposal for lieutenant governor Vinai Kumar Saxena’s approval. Saxena is likely to consider the proposal on Monday, said his office. After Saxena approves the proposal and a formal order is issued the liquor shops can open from Monday for a month.

A closed shop due to liquor shortage after heavy rush on Saturday. (Hindustan Times)

The extension was approved to enable a smooth transition from the existing to the old policy under the which government ran almost 60% of the liquor stores.

The Cabinet said the tenure of existing licenses was expiring on July 31 and added to maintain the confidence of people in the administration, the Delhi government extended the existing licenses for a month. “Seized of the fact that the Excise Policy 2021-22 is not able to achieve the desired objectives of fetching greater revenues as envisaged and projected, and owing to the fact that the said policy has been flagged with many a issues that are under detailed examination/investigation by agencies, the Government of National Territory of Delhi (GNCTD) has decided to revert to the old policy (prevalent till 16th November 2021) for a period of six months with effect from 01st September, 2022.”

It was not immediately known if under the old policy only the government will run liquor stores or will it issue licenses to private players as well as was being done before the new policy was implemented in November 2021. Under the old regime, around 40% of liquor stores were being run by private players.

Liquor traders have sought permission to run liquor stores during the implementation of the old policy as was previously done. “This system was in practice for nearly 20 years and it is a tested system which yielded sustained revenue growth over the years to the government. We do not currently have any information about whether the government will permit private players to run some stores when the old policy is implemented,” said a trader, who did not want to be named.