In June 2021, the Kejriwal-led Delhi Government divided Delhi into 21 excise zones under the Excise Policy 2021-22. As per the policy framework, there would be 849 outlets selling alcohol in the national capital, including five super-premium vendors.
The last set of licenses were allotted in September, and all new licensees were asked to begin operations from November 17. The government earned Rs. 8,900 crores through the bidding process. Notably, it was 26.7% higher than the reserved price for the licenses, as reported by Hindustan Times. Under the new Delhi Excise Policy, the government will no longer sell liquor in the city, and the entire segment will be handled by private entities.
The allotment process had started in August itself. Twenty zones were allotted in August, while the remaining were allotted in September. The reserved price was Rs. 7,041 crores. According to a report in Hindustan Times, Zone 28 that covers areas including Dwarka-A, Deoli, Bhajanpura, Kardampuri and Quraish Nagar won the highest bid at Rs. 357 crores. In terms of highest profit, Zone 32 that covers the Airport zone topped the list with Rs. 235 crore. The reserved price for the same was Rs. 105 crore.
The government’s earnings from these vendors do not stop at the license. The government would earn approx Rs. 650 crores from excise duty, import fees, VAT and other license fees. Apart from that, the government is expecting to earn another Rs. 900 to Rs. 1,000 crore from licensing of new brands, distributor licenses and more.
As per the government data, the Delhi government has been earning up to Rs. 5,500 crores per annum from the liquor sector. The new excise policy pushed the revenue up by around 40%. Interestingly, the retailers would be free to decide the selling price of the liquor, and the government would not have a say in the MRP. The retail outlets can only operate between 10 AM to 10 PM. Airport outlets may function 24×7.
The five super-premium liquor outlets would not have iron grills. The buyers would be able to browse the high-end products and make the purchase. The home delivery of liquor is also included in the new policy across the national capital.
No reduction of VAT on fuel
Despite more-than-expected income from the liquor license, the Delhi government had not reduced Value Added Tax on petrol and diesel so far. Notably, the central government reduced excise duty on the fuel a day before Diwali. The BJP-ruled states also followed suit and reduced VAT to give additional relief. However, among the non-BJP ruled states, only Odisha reduced VAT, and the rest of the states, including Delhi, Rajasthan, Punjab etc., did not take any steps to provide relief to residents from fuel prices.
