Maharashtra Govt Likely to Lift 50-Year Ban on New Liquor Licences to Boost Excise Revenue

In a significant policy shift aimed at augmenting state revenues, the Maharashtra government is preparing to lift a five-decade-old freeze on issuing new liquor shop licences. The move, if implemented, will end a restriction that has been in place since 1974 and pave the way for the issuance of 328 new licences, according to a report in Loksatta.

This decision comes as part of a broader strategy to increase income through the Excise Department, which currently ranks as the fourth-largest contributor to Maharashtra’s revenues, generating approximately ₹43,000 crore annually. The state expects the revised policy to boost excise revenue by an additional ₹14,000 crore per year, helping fund welfare initiatives like the Mukhyamantri Majhi Ladki Bahin Yojana.

Policy Change Sparks Political Row

The reform recommendations were drafted by a committee chaired by Deputy Chief Minister and Excise Minister Ajit Pawar. However, the move has drawn criticism from opposition leaders and activists who allege potential conflict of interest.

Critics have pointed out that individuals allegedly close to Pawar are linked to major liquor businesses, including a large alcohol manufacturing plant in Baramati. This association has raised concerns about whether the policy could indirectly benefit those connected to him. Efforts to obtain a response from Pawar on the issue remained unsuccessful at the time of publishing.

Impact on Liquor Retail in Maharashtra

If approved, the policy is expected to increase the number of licensed liquor shops across Maharashtra by 19%, raising the total from 1,713 outlets—a number unchanged since the 1970s—to over 2,000.

Under the proposed guidelines, liquor shop licences can now be leased. While old licences currently sell for nearly ₹10 crore on the open market, the government plans to offer the new licences for a non-refundable deposit of ₹1 crore, expecting to earn ₹35 crore annually through licence fees alone.

Maharashtra Lags Behind in Liquor Outlet Density

Industry data highlights Maharashtra’s restrictive alcohol retail landscape compared to neighbouring states. While other states maintain an average of six liquor outlets per one lakh population, Maharashtra has only 1.5 per lakh. Many states also report a consistent 3% annual increase in wine shop licences, whereas Maharashtra has kept its numbers stagnant for decades.

“Given Maharashtra’s large geography and population, increasing the number of outlets is both reasonable and necessary,” said Dr. Rajgopal Deora, Additional Chief Secretary of the Excise Department, in an interview with The Indian Express.

Historical Resistance to Expansion

This isn’t the first time the state has attempted to increase liquor licences. A similar move in the past was rolled back due to strong opposition from socialist leaders like N D Patil and Mrinal Gore, who argued that increasing liquor outlets would encourage alcohol consumption and harm social fabric.

Road Ahead for the New Policy

While the government sees the move as a way to mobilise crucial funds for welfare schemes and infrastructure development, the policy is expected to face stiff resistance from social activists and political opponents who worry about its social impact.

If implemented, the new liquor shop licences will mark a historic shift in Maharashtra’s excise policy, ending a ban that shaped alcohol retail in the state for half a century.