Maharashtra Excise Dept Led By Ajit Pawar Proposes To Allow 2,160 New Liquor Shops, Plan Put On Hold After Shiv Sena's Objection

Mumbai: In a major move aimed at boosting state revenue, the Maharashtra excise department, led by Deputy Chief Minister Ajit Pawar, on Tuesday proposed the issuance of 2,160 new liquor shop licences across the state. The proposal was presented alongside a cabinet recommendation to increase excise duty on liquor, the latter of which was passed, resulting in a sharp rise in liquor prices. However, the proposal to expand the number of liquor outlets faced stiff resistance from Shiv Sena ministers.

The original plan called for one new licence per district for each of the 60 distilleries operating in Maharashtra. This was seen as an indirect route to increase retail outlets, given that no new retail licences have been issued in the state since 1972 due to consistent opposition from social activists and the public. Currently, Maharashtra has around 1,700 Indian Made Foreign Liquor (IMFL) shops and over 3,500 country liquor outlets.

Proposal Receives Strong Objection From Shinde Sena

The liquor-manufacturing companies are presently allowed only one shop each, but the new plan aimed to expand this, citing models followed in other states like Uttar Pradesh. According to a Hindustan Times report, Tourism Minister and Shiv Sena leader Shambhuraj Desai, who previously held the excise portfolio, led the opposition. He pointed out the irony that Ajit Pawar’s party had opposed a similar plan under the previous Eknath Shinde-led government, citing the risk of a public backlash.

CM Fadnavis Steps In, Puts Proposal On Hold

In response to the pushback, Ajit Pawar revised the proposal, suggesting a scaled-down version with just 360 new shops, one for each of the six revenue divisions. However, even this revised plan was met with resistance from Sena ministers. Following the deadlock, Chief Minister Devendra Fadnavis stepped in and put the entire proposal on hold, though it was not scrapped.

The proposal was rooted in recommendations made by a committee headed by Valsa Nair, which had been constituted in January. Besides suggesting new licences, the committee advocated for a number of reforms to ease operations in the liquor sector. These include removing the need for superintendent-level approval for installing beer dispensers in permit rooms and boosting wine consumption, which currently makes up only 10 million litres in the state’s annual liquor sales of 1,110 million litres.

Additionally, the committee stressed the need for better coordination between the excise and GST departments to curb tax evasion. It estimated that underreported sales by permit rooms lead to an annual VAT loss of nearly Rs 600 crore and proposed data-sharing mechanisms to address this issue effectively.