New excise policy gives Gurugram players edge in heated contest with Delhi

At least 20 owners who surrendered their liquor licences last year to take up places in Delhi have decided to resume operations in Gurugram, excise officials said

Several pub, bar, and restaurant owners who were planning to shift operations to Delhi, to avail of the significantly better benefits of the Delhi excise policy, said they have put their plans on hold after the Haryana government last month came out with a new excise regime that has given them an edge in their heated competition with Delhi.

The biggest attraction for business owners is the provision to run establishments round the clock, for a fee. (Vipin Kumar/HT PHOTO)

At least 20 owners who surrendered their liquor licences last year to take up places in Delhi have decided to resume operations in Gurugram, excise officials said. The new policy, announced by the Haryana government on May 6, has greatly eased norms for licensees, they said. The biggest attraction for business owners is the provision to run establishments round the clock, for a fee.

According to owners, 24x7 operations will give them immense flexibility in catering to different kinds of clientele and creating customised menus. All-night operations will also attract customers from across the National Capital Region (NCR) and adjoining districts of Sonepat, Rohtak, Rewari and Jhajjar, they said.

Rahul Singh, trustee, National Restaurant Association of India (NRAI), said, “Gurugram, with just 10% of Delhi’s demographic, boasts of more than 300 liquor licences as the Millennium City caters to a younger working populace. Haryana government’s recent policy has made reformative provisions for reduced tax and quicker licensing processes. Being twin cities, we expect Delhi and Gurugram to learn best practices from each other for the sake of the government, manufacturers, licensees, and, most importantly, the consumers.”

Owners said the new policy has encouraged responsible, late-night partying and will transform Gurugram into a progressive destination. Pub goers will have multiple options in terms of food and drinks, putting the city on par with major global destinations.

Ashish Dev Kapoor, founder, Whisky Samba Bar and Grill, said he prefers Gurugram over the Capital because it is a better place to run operations, with modern infrastructure and more space. “Places like Horizon 1, 2 and CyberHub are restaurant districts with great infrastructure in terms of parking, available space, and outdoor seating. This creates an international ambience, which does not exist in Delhi,” he said.

Some owners, however, feel that the licence fee is still high in Haryana as compared to the Capital, despite the ease of doing business accorded by the new policy.

“If anyone wants to run operations till 4am in Delhi, they do not have to pay an extra fee. But in Gurugram, one must pay an additional amount of ₹20 lakh to run operations till 8am,” said Rohit Mann, director, Raise the Bar Brewery, Clarens Hotel, Sector 29.

Mann further said, “Haryana does not allow microbreweries to supply to restaurants, unlike Delhi, which gives them a chance to use their excess capacity.” He said a few minor tweaks in the policy will greatly help businesses in Gurugram.

According to VK Beniwal, deputy commissioner, excise and taxation, Gurugram (east), the new regime will motivate business owners to set up operations in Gurugram. “The policy has been designed in a way to provide licensees with more opportunities and attract establishments serving various kinds of cuisines and liquor brands. With reduction in licence fees, and introduction of round the clock operations, people will prefer coming to Gurugram. We are trying to introduce changes which will transform the city into a premier destination for bars, pubs, and restaurants,” he said.

Rahul Yadav, co-founder and director of Brick n Bean Café, said that Gurugram a year ago was undoubtedly a better city to run bars and pubs, due to pro-business excise policy, leniency on operating time (till 1am) and comparatively an easier process to obtain bar licence. “But recently, the Delhi government took cues from the city and made significant changes in their excise policy and reduced the licence fee to make it more business-friendly, It also became more lenient in operation timings. While Delhi definitely has more business in comparison, due to the captive customers and a diverse pocket size there, Gurugram is still an easier place to run bars and restaurants,” Yadav said.