Majority of Delhi residents support privatisation of liquor vends, says LocalCircles report

NEW DELHI: A majority of residents of Delhi support privatisation of liquor vends as suggested by the State’s Excise Committee, while 73% Delhi residents support excise reforms proposed by the Delhi Government, a new industry report said.
The report, by social community platform LocalCircles, said 54% residents of Delhi support privatisation of liquor vends, and that half the residents of Delhi support changes in minimum age to purchase liquor from 25 to 21 years similar to the regulations in other cities across NCR.

The Delhi Excise Committee formed by the State Government in September 2019 had recommended changes in the excise policy for 2021-22 and sought suggestions from the public for the Cabinet to approve the formulation of the policy. It categorised its recommendation into five broad measures to augment state excise duty revenue, simplify liquor pricing mechanism, check malpractices and evasion of duty in liquor trade, ensure equitable access to liquor supply, and transform the nature of liquor trade.

Liquor is one of the largest sources of revenue in Delhi, with the local administration reportedly earning around Rs 5,400 crore from its sale in 2019-20.

The International Spirits and Wines Association of India (ISWAI), a representative body promoted by multinational alcoholic beverage companies, has been in dialogue with the Delhi government to streamline the alcohol business to optimise revenue to the state.

The panel recommended minimising the Delhi Government’s presence in the liquor retail sector, that government vends need to be privatised and minimum age to buy liquor also be reduced to 25 from 21 years. The moves is aimed at improving consumer experience at liquor vends and to minimise loss of revenue to neighbouring states of Uttar Pradesh and Haryana.

Currently, 60% of the liquor vends in the capital are owned by Government corporations, while the remaining 40% are privately owned.

The report said 73% respondents were men while 27% were women and that all respondents were above age 25.

The committee has also recommended that restaurants, bars and clubs be allowed to stay open till 3 am instead of 1 am, serving full bottles on tables and liquor in open areas such as rooftops and balconies also be allowed.