Delhi govt, LG extend excise policy by another 6 months

Official said that since both the government and the LG approved the extension, it is unlikely that there would be any disruption in liquor supply

The Delhi government and lieutenant governor VK Saxena have approved the extension of the existing excise policy 2020-21, which expires on September 30, for six months till March 31, 2024 to ensure the continuity of supply of liquor in the Capital, officials aware of the development said on Thursday.

Delhi has 628 retail liquor stores, but none of them are private outlets. (HT Archive)

The notification of the extension is yet to be issued as Thursday was a holiday for Eid e Milad and Anant Chaturdashi (Ganesh Visarjan), the officials said, but added that the notification will be issued on Friday.

“The notification for the extension of the existing excise policy will be issued on Friday, and traders who are willing to continue their excise businesses will be asked to apply for the extension of their licences with the same terms and conditions on the payment of additional licence fee on a pro rata basis,” an official said, declining to be named.

A second official said that since both the government and the LG have approved the extension of the policy, it is unlikely that there would be any disruption in the Capital’s liquor supply. “Traders will be given additional days beyond September 30 to renew their licences so that there is no disruption in supply,” the second official said.

Delhi has 628 retail liquor stores, but none of them are private outlets. Instead, all the retail liquor stores in the city are run by four Delhi government corporations — Delhi State Industrial and Infrastructure Development Corporation (DSIIDC), Delhi Tourism and Transportation Development Corporation (DTTDC), Delhi Consumer’s Cooperative Wholesale Store (DCCWS), and the Delhi State Civil Supplies Corporation Limited (DSCSC).

The Delhi government introduced the 2021-22 excise policy on November 17, 2021, which aimed to revitalise the city’s flagging liquor business, but this was scrapped and replaced by the previous 2020-21 regime on September 1, 2022 after Saxena recommended a Central Bureau of Investigation probe into alleged irregularities in the new policy.

Excise officials were then tasked with preparing a new liquor policy for the city, which was to be ready by September 2022. However, the new rules are yet to be framed, officials said. They said they are treading a fine line, trying to ensure that the liquor business is revitalised but at the same time, they do not fall foul of the law.

Till a new policy is framed and approved, the existing 2020-21 policy has been extended multiple times — first in February (till March 31), in March (till September 30), and now, in September (till March 31, 2024).

Vinod Giri, director general, Confederation of Indian Alcoholic Beverage Companies (CIABC), said the extension of the existing policy is a welcome step, but the current regime is not healthy for business.

“The existing excise policy is a cropped version of the old excise policy valid until mid-2021. It does not allow private players to open and operate liquor vends, and since the government cannot open shops fast enough, we have a very low number of shops in the city. This policy caps the legal drinking age at 25 years, which is the highest in the country, and has 21 dry days per year, compared to just three in neighbouring Haryana and Uttar Pradesh… Because Delhi is neighboured by Gurugram and Noida, it needs a competitive excise policy for the growth of the liquor business,” said Giri.