Let bars, restaurants stay open till 3am, says Delhi govt panel

The report, uploaded on the excise department’s website for feedback from stakeholders ahead of drafting a policy, has also called for licence fee for bars to be rationalised on the basis of location instead of seating capacity.

A committee set up by the Delhi government to augment excise revenue in the Capital has recommended that restaurants, clubs and pubs be allowed to stay open till 3am instead of 1am; be allowed to serve full bottles on the table; and to serve liquor in open areas such as rooftops and balconies.

The panel also suggested that full liquor bottles be allowed on tables and alcohol be served in open areas. (Representational photo)

The panel has also said that anyone over the age of 21 should be able to get a drink at a bar or a hotel. In Delhi, at least on paper, the minimum age to be served liquor at an establishment is 25.

The report, uploaded on the excise department’s website for feedback from stakeholders ahead of drafting a policy, has also called for licence fee for bars to be rationalised on the basis of location instead of seating capacity; for it to be made easier for restaurants which have a valid fire safety certificate to get a bar licence; and for establishments to be allowed to purchase liquor from retailers too, instead of only wholesalers as mandated by current rules.

The report, which HT has seen, also recommended that provisions be made for additional liquor serving counters (for an extra fee) and that establishments be allowed to store liquor anywhere inside their premises, including refrigerators, instead of specific storage rooms, and doing away with the provision of issuing a public notice in the neighbourhood to record objections before granting liquor licence, something that it said is often misued by competitors to block a new licence from being issued.

After the feedback process ends, the government will draft a policy and table it before the Delhi cabinet. If approved, after incorporating changes (if any), the policy will be notified and excise rules will be changed accordingly, said a senior official in the excise department who asked not to be named.

The same committee has also recommended that the number of dry days in the Capital be reduced from 21 on an average to three per year, norms be relaxed for departmental stores to avail licence for selling wine and beer, and equitable distribution of government-operated liquor stores across all 272 municipal wards, areas under New Delhi Municipal Council and the Indira Gandhi International Airport.

The committee was set up in September by Delhi’s deputy chief minister Manish Sisodia, who also holds the portfolios of finance and excise, to augment the government’s excise revenue, simplifying liquor pricing mechanism, checking malpractices, ensuring equitable access, and helping the government in its ease of doing business policy, which is primarily aimed at recovery of state revenues in the light of the Covid-19 pandemic.

Delhi’s projected excise revenue for 2021-22 is ₹7,651 crore – up from ₹5,068.7 crore, the actual revenue for 2019-20, said an official in the finance department.

The committee noted that Delhi currently has 720 functional retail liquor stores – of which nearly 40% sell only country liquor – in local shopping complexes, as against 1,190 liquor stores in Mumbai and 1,794 in Bengaluru. Other than that, Delhi has around 800 bars located in hotels, restaurants, pubs and clubs. While those in five-star hotels are allowed to operate 24x7 under a special license which costs a hefty fee, most bars located in restaurants, clubs and pubs have to wrap up by 1am under the current norms. Liquor shops in the city have to shut by 10pm.

“We welcome these recommendations. The progressive measures will help the industry that is one of the highest employment generators in the country. It will also be a booster shot for tourism and vibrancy of New Delhi which was losing out to its fellow metros. It will ultimately lead to a more vibrant and stronger economy,” said Riyaaz Amlani, treasurer of the National Restaurants Association of India, a collective of more than 500,000 restaurants across the country.

Vinod Giri, director-general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), said: “The objectives set by the government are spot on. The premise behind the recommendations is right, and some recommendations are obvious winners… We applaud this initiative. It shows that the Delhi government has its focus on policies that work for all stakeholders.”