Delhi Government to Continue State-Run Liquor Stores, Introduce Major Policy Overhaul

The Delhi government's upcoming excise policy draft proposes significant changes to liquor retail operations, confirming the continuation of government-run liquor stores. Four state corporations – Delhi State Industrial and Infrastructure Development Corporation (DSIIDC), Delhi Tourism and Transportation Development Corporation (DTTDC), Delhi State Civil Supplies Corporation (DSCSC), and Delhi Consumers’ Cooperative Wholesale Store – will continue to manage all liquor vends in the city. The policy intends to upgrade these outlets, making them larger, better designed, and preferably located in malls and shopping complexes, while also moving them away from residential areas, schools, and religious places. A crucial change involves overhauling the profit margin system. The current fixed profit of Rs 50 per bottle for Indian Made Foreign Liquor (IMFL) and Rs 100 for imported brands will be removed, a move aimed at encouraging retailers to stock a wider variety of premium brands. This policy follows the rollback of the controversial 2021-22 excise policy that had attempted to bring in private players but faced corruption allegations. The current temporary framework, established after government stores reopened in September 2022, is valid until March 2026.

Impact: This policy shift is expected to impact the operational strategies and revenue streams of the government-owned corporations. It may also lead to greater availability of premium liquor brands and a more organized retail experience for consumers in Delhi. Rating: 6/10.

Difficult Terms: Liquor Vends: Shops that sell alcoholic beverages. Indian Made Foreign Liquor (IMFL): Alcoholic beverages manufactured in India that are similar in type to those produced abroad, such as Indian-made whiskies, rums, or vodkas. Profit Margins: The profit a seller makes on a product, calculated as the difference between the selling price and the cost price. Stakeholders: Individuals, groups, or organisations that have an interest in or are affected by a particular policy or business. Rollback: The act of withdrawing or reversing a previously implemented policy or decision.