Maharashtra Lifts 50-Year Ban to Issue 328 New Liquor Shop Licences

In a significant policy shift, Maharashtra will lift its decades-long freeze on granting liquor shop licenses by allowing the issuance of 328 new permits, as per an NDTV Marathi report. This unprecedented move is aimed at increasing state revenue and modernising the licensing process.

Key Changes in Maharashtra’s Liquor License Policy

The state government will increase the total number of liquor licenses by 19%, raising the current count from 1,713 to 2,041. Each company can secure up to 8 licenses, which can be leased out under the revised norms. The amount required for obtaining a license has also been significantly reduced from ₹10 crore to ₹1 crore per company. However, this deposit remains non-refundable, ensuring commitment from applicants.

Policy Objectives and Economic Implications

This move aims to stimulate competition, improve accessibility, and enhance tax revenue. By enabling corporations rather than individuals to operate liquor outlets, the administration seeks to professionalise the industry. This policy also takes a cue from growing alcohol retail trends seen in other Indian states. A committee led by Deputy Chief Minister Ajit Pawar has been tasked with overseeing foreign liquor license allotments.

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Concerns Around Governance and Oversight

Despite regulatory efforts, concerns have emerged regarding transparency. Jay Pawar, a director at liquor manufacturer Capacity and a relative of Ajit Pawar, has raised eyebrows over potential conflicts of interest. The government insists all operations will follow legal frameworks, including shop relocations and shutdowns in response to community concerns, particularly by women.

Conclusion

Maharashtra’s bold decision to issue 328 new liquor shop licenses for the first time in 50 years marks a significant change in the retail liquor policy. Reduced entry costs and a company-centric approach aim to generate higher state revenues, although concerns about transparency and equity remain under scrutiny.

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