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The Maharashtra government is set to lift a 50-year-long freeze on issuing new wine shop licences in a move aimed at boosting state revenue. According to a report published in Loksatta, the government plans to issue 328 new licences based on the recommendations of a recently formed committee. If implemented, this decision would bring an end to the ban that has been in place since 1974, originally imposed in response to public opposition.

The move is part of a broader strategy to boost revenue through the Excise Department, which is the fourth-largest contributor to Maharashtra’s income, generating approximately Rs 43,000 crore annually.

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With welfare initiatives like the ‘Mukhyamantri Majhi Ladki Bahin’ scheme requiring substantial funding, the government is actively seeking new sources of income. According to Loksatta, if the recommendations of the recently formed committee are implemented, the state’s excise revenue could increase by Rs 14,000 crore annually.

However, the decision has sparked controversy and raised allegations of a conflict of interest. The committee tasked with implementing the reforms is chaired by Deputy Chief Minister and Excise Minister Ajit Pawar, a move that has drawn criticism from opposition leaders and civil society groups.

Concerns have been voiced over the potential influence of individuals closely associated with Pawar, who are reportedly involved in the liquor industry. A large alcohol manufacturing plant in Baramati has become a focal point in the ongoing debate.

Industry experts and opposition leaders have questioned the appropriateness of Ajit Pawar heading the committee, suggesting the move could disproportionately benefit his close associates. Critics argue that the appointment raises ethical concerns, particularly given the reported ties between Pawar’s network and the liquor industry. Attempts to obtain a response from Pawar were unsuccessful at the time of reporting.

Maharashtra New Liquor Policy 

The new policy is expected to increase the number of licensed retail liquor shops in Maharashtra by 19 per cent. Currently, the state has 1,713 licensed outlets, a figure that has remained unchanged since the 1970s. A previous attempt to expand this number was rolled back following strong resistance from prominent socialist leaders like N.D. Patil and Mrinal Gore.

Under the revised rules, liquor shop licences can now be leased, a shift from the earlier system. While old licences are traded for nearly Rs 10 crore in the open market, the new licences will be issued for a non-refundable deposit of Rs 1 crore, with the state expected to earn around Rs 35 crore annually from licence fees.

In comparison to neighbouring states, Maharashtra lags significantly in liquor shop density, with only about 1.5 shops per one lakh people, while others average around six. Additionally, most other Indian states have recorded a steady 3 percent annual increase in the number of wine shops, whereas Maharashtra’s figures have remained stagnant for decades.

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“Given the state’s geography and population, increasing the number of outlets is both reasonable and necessary,” Dr Rajgopal Deora, Additional Chief Secretary of the Excise Department said, according to the Indian Express report.