Delhi's New Excise Policy to Maintain Government-Run Liquor Shops with Major Reforms
Delhi's upcoming excise policy will continue with government-operated liquor stores, focusing on larger, better-designed outlets located in malls and commercial areas, moving away from residential neighborhoods. It proposes revising profit margins to incentivize stocking premium brands, aligning liquor prices with neighboring states to reduce revenue leakage, and fostering a more transparent and socially responsible retail environment.
The Delhi government is preparing a new excise policy that retains the current model of government-run liquor outlets managed by four state corporations, effectively ruling out private participation. The policy aims to create larger, cleaner, and better-designed government liquor stores primarily in malls and shopping complexes, relocating them from densely populated residential areas to address social concerns. A key reform includes overhauling the profit margin system to increase retailer margins per bottle, encouraging stores to stock and promote premium liquor brands rather than cheaper varieties. This change is expected to enhance consumer choices and limit aggressive sales tactics. Additionally, the policy plans to align liquor prices with those of neighboring National Capital Region (NCR) states to prevent cross-border purchases and resultant revenue losses. These measures seek a more transparent, sustainable, and socially aware system. Proposals such as lowering the legal drinking age from 25 to 21 are under discussion but not finalized. The new framework is being finalized by a high-level committee led by the Public Works Department minister and is expected to replace the current extended policy by March 2026. Overall, the policy envisions a consumer-centric, responsible approach balancing financial goals with social impact mitigation.
