The scheduled draws for contracts under the new excise policy in Punjab have been postponed till further orders, pending approval from the Election Commission. The State Chief Electoral Officer, Sibin C, confirmed that the government’s request to conduct the draws is under the Commission’s review and further directions will be communicated back to the government.
The draws which were planned for March 22, have been stalled by the enforcement of the model code of conduct. Historically, during election years such as 2009, 2014 and 2019, the procedure for excise policy draws or auctions has always been subject to the Election Commission’s consent.
Meanwhile, the postponement comes as a setback to the state's ambitious revenue goals set by the new excise policy, which projected high earnings for the Punjab government. The government’s revised policy aims to generate a record-breaking revenue of Rs 10,145.95 crore for the fiscal year 2024-25, marking an increase of Rs 621.95 crore over the previous year.
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The current policy revision has garnered considerable interest, with the government receiving over 35,000 applications for 6,400 shops distributed across 236 groups. This overwhelming response has already netted the government Rs 260 crore in application fees alone.
However, the delay in the draw, caused by the March 22 postponement, has compounded the government’s challenges. If the Election Commission orders that the draw can only proceed post-elections, the state government may face a two-month wait. This is due to the Lok Sabha elections in the state being scheduled for the last phase on June 1.