BackWill you be able to get alcohol of your choice in Delhi from today?
Starting today, the Delhi government will resume its liquor retail business and is setting up stores across the city
PremiumNEW DELHI : Consumers in Delhi may find it difficult to buy their favourite alcoholic beverages, as liquor vends across the national capital down their shutters.
The question troubling most consumers is whether they can buy the brand of their choice, or have access to any alcohol at all? If yes, where can they find the brand and at what price? After about 10 months of buying heavily-discounted alcohol under the Delhi government’s controversial excise policy, the consumers may not find it easy to access liquor stores, as private alcohol retailers had to down their shutters in most parts of the city. The U-turn on the policy has also disrupted the working of many hospitality businesses, which were earlier battered by covid-led disruptions that hit sales. Starting Thursday, the Delhi government will resume its liquor retail business and is setting up hundreds of stores across the city. While initial hurdles are expected, experts said wholesale L1 licencees are all ready to start operations and about 1,000 brands have been registered under the new regime.
How the new policy came into place The AAP-led government had touted the new liquor policy as a tool to increase revenues for the state, and transform the liquor trade in the capital with better, modern stores from 1 November 2021. The government of national capital territory of Delhi approved the policy that said only private operators will be allowed to run liquor vends, and auctioned off all 32 zones to private players under Excise Policy 2021-22.
Out of the 864 vends, 60% or 20 zones were being run by the Delhi government in 2021. With the new policy in place, the Delhi government decided to entirely exit the business.
Following the bidding of the zones, the government said is to have earned about ₹8,900 crore in direct revenue, or over ₹1,800 crore more than the reserve price. Like before, the city was to be divided into 32 zones having 27 stores in each zone. But only 468 stores came up, and some were even running after the licences expired. The policy allowed the store owners sell liquor at heavily discount prices.
In February, the Delhi excise commissioner passed an order to discontinue the discounts as it increased the possibility of bootlegging.
Starting January, the BJP staged protests against AAP over the alleged ‘liquor scam’, embroiling the state’s deputy chief minister Manish Sisodia. This eventually led to Delhi lieutenant governor V.K. Saxena to recommend a Central Bureau of Investigation probe into the controversial policy.
On 30 July, Sisodia decided to roll back the policy after just about nine months of being operational. What’s happening now Now, four departments—Delhi Tourism and Transport Development Corp. (zones 1-9), Delhi State Industrial Infrastructure Development Corp. (10-18), Delhi Consumer’s Cooperative Wholesale Stores (19-24) and State Civil Supplies Corp. (25-30)—have been asked to run liquor stores .
What next?
The L1s are fully stocked, half with the older stocks that was allowed to be transferred and partially with new stock. By the end of the month about 550 of the 850 stores should come up as well. But, consumers, hotel and restaurants may not find their choice of brands. Hotels and restaurants are also likely to get a lower discount of just 15% when they purchase alcohol from L1 stores. Government officials are suggesting 260 outlets will be ready by 1 September. Variety, too, will be a huge problem as the government is focused on selling volumes. The number of domestic brands will fall as each brand and category has to be registered separately, that may cost about ₹15 lakh for every stock keeping unit (SKU) or variety of alcohol of wholesale fee. A number of international brands may also enter as imported spirits have a lower wholesale fee of ₹70,000- ₹3 lakh.
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