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Monday, September 27, 2021

Delhi govt earns Rs 5,300 cr from retail licences for liquor vends

The tender process forbids a bidder from bidding in more than two zones, which will bring in more players to the market, thus preventing instances of monopolisation, states the policy.

By: Express News Service | New Delhi |
Updated: August 7, 2021 10:31:23 am
Under the new excise policy, the city’s 272 municipal wards have been divided into 32 zones. (Archive)

The Delhi government has earned around Rs 5,300 crore in the initial rounds of draw of lots held for allocation of retail licences under the new excise policy, official sources said Friday.

Under the new policy, the city’s 272 municipal wards have been divided into 32 zones, for which licences are being awarded separately. Each zone — having nine to 10 wards —will have a maximum of 27 liquor outlets, with an average of three outlets in each ward.

The tender process forbids a bidder from bidding in more than two zones, which will bring in more players to the market, thus preventing instances of monopolisation, states the policy.

“A zone-wise revenue of around Rs 265 crore is further expected to be received from the bidding of the remaining 12 zones,” a source added.

“The reserve bidding price was set at Rs 221 crore. The highest bid was auctioned for the New Delhi zone at a 45 per cent premium at Rs 315 crore. After including revenues from country liquor, licensing, and import duties, the revenue estimates will shoot up further,” said another official.

Under the previous excise regime, a total of Rs 6,358 crore was collected in the fiscal year 2019-2020 including excise from Indian and foreign liquor, VAT from wholesale and retail sales, and retail licensing fees.

The policy makes it clear that the government will exit the business of selling liquor through its undertakings such as the Delhi Consumer’s Cooperative Wholesale Store Ltd (DCCWS) and the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC).

The licences of the existing retail vends are valid till September 30.

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