Maharashtra Set To Lift 50-Year Ban On New Liquor Licences To Boost Revenue: Report

Mumbai: In a major policy shift aimed at enhancing state revenue, the Maharashtra government is preparing to lift a five-decade-long ban on issuing new wine shop licences.

According to a Loksatta report, a government-appointed committee has recommended the issuance of 328 new licences, potentially ending a freeze that has been in place since 1974 due to public opposition.

Why Is The Ban Being Lifted?

The initiative forms part of a broader strategy to increase income through the state’s Excise Department, which is currently the fourth-largest contributor to the treasury, generating nearly Rs 43,000 crore annually. The move comes at a time when the state is under increasing financial pressure to fund ambitious welfare schemes, including the recently announced Mukhyamantri Majhi Ladki Bahin program. If fully implemented, the policy is expected to generate an additional Rs 14,000 crore per year in excise revenue.

Political Controversy Around New Policy

However, the plan has sparked political controversy, particularly regarding the role of Deputy Chief Minister and Excise Minister Ajit Pawar, who heads the reform committee. Critics have alleged a conflict of interest, pointing to reports that some liquor industry players with ties to Pawar are beneficiaries of alcohol manufacturing units in Baramati, his political stronghold. These allegations have intensified concerns over the impartiality of the reform process. Efforts to obtain Pawar’s comments on the matter have so far been unsuccessful.

If approved, the new policy would increase the number of retail liquor outlets in Maharashtra by 19 per cent. The state currently has 1,713 licensed shops, a figure that has remained unchanged since the 1970s. Past efforts to expand the number were stalled due to resistance from prominent socialist leaders such as N D Patil and Mrinal Gore.

Details On Revised Guidelines For Liquor Licences

The revised guidelines will also introduce a leasing model for new licences. While the market rate for purchasing an old liquor licence hovers around Rs 10 crore, the new licences will require only a non-refundable deposit of Rs 1 crore, with the state expected to earn around Rs 35 crore annually from licence fees.

Experts argue that Maharashtra’s liquor retail density is disproportionately low compared to neighbouring states, with just 1.5 shops per lakh population versus six elsewhere. Dr Rajgopal Deora, Additional Chief Secretary of the Excise Department, while speaking to The Indian Express, said, “Given Maharashtra’s size and demographics, the expansion is justified."