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Delhi government extends excise policy for 9 months, till March next year
Delhi government extends excise policy for 9 months, till March next year

Indian Express

time27-06-2025

  • Business
  • Indian Express

Delhi government extends excise policy for 9 months, till March next year

The Delhi government on Friday decided to extend its existing excise policy, under which only government liquor shops are allowed in the city, for another nine months, till March 31, 2026. According to officials, the government has formed a high-level committee to chalk out a new policy, and it will need time to finalise the modalities and guidelines. Meanwhile, as the existing policy's term ends on June 30, the excise department decided to extend the old excise regime under which four government corporations run liquor shops in Delhi. 'The Competent Authority has granted approval for continuation of Excise Duty Based Regime which is in effect from licensing year 2022-23. (which was continued in 2023-24 and 2024-25) for Excise Year 2025-26 ( 01.07.2025 to 31.03.2026), for grant of wholesale licenses on basis of same terms and conditions and accordingly new L-1, L-1F, L-2 Licenses are allowed on same terms and conditions of Excise Duty Based Regime,' a notification issued by Tanvir Ahmad, Deputy Commissioner, Excise, on Friday reads. The notification said that the terms and conditions of all licences, which are renewable every year, are also continued for the excise year 2025-26 within the following timelines: Meanwhile, the department has also asked concerned branches dealing with all the licences and permits granted or renewed to issue necessary circulars in this regard. Currently, there are around 792 liquor shops in Delhi which are run by the Delhi State Industrial and Infrastructure Development Corporation, Delhi Consumer's Cooperative Wholesale Store, Delhi Tourism and Transportation Development Corporation and Delhi State Civil Supplies Corporation.

Cheers next door: Delhi liquor stores lose ground; customers prefer Haryana, UP options, revenue loss hits Rs 1,500 crore
Cheers next door: Delhi liquor stores lose ground; customers prefer Haryana, UP options, revenue loss hits Rs 1,500 crore

Time of India

time16-06-2025

  • Business
  • Time of India

Cheers next door: Delhi liquor stores lose ground; customers prefer Haryana, UP options, revenue loss hits Rs 1,500 crore

NEW DELHI: Until a few years ago, 40-year-old Arun Bhatia, a marketing professional with a multinational FMCG company, always shopped for his preferred brands of liquor in Delhi. Tired of too many ads? go ad free now The rates were relatively cheaper than in Noida, where he lives, and he trusted the quality more. He would spend considerable time at his favourite shop in Connaught Place, browsing through the various brands available there. The trend changed completely in the last three years. Bhatia and several other liquor enthusiasts in Delhi now visit the ultra-modern liquor shops in neighbouring Gurgaon or Faridabad, where not only are the prices lower, but the variety of Indian and foreign brands in each category of liquor is also huge. Customers visit the liquor showrooms in the neighbouring towns of Haryana and Uttar Pradesh for the sheer experience that is completely missing in the capital, where people are forced to jostle against each other in a small shop and ask for the bottle from across a huge desk or an iron grill. What changed in the last few years was that the retail liquor business in the capital failed to keep pace with other states. Before Nov 2021, when Delhi govt rolled out a new excise policy, there were both state-run stores and private shops involved in the retail liquor business. While the four state corporations – Delhi Tourism and Transportation Development Corporation, Delhi State Industrial and Infrastructure Development Corporation, Delhi State Civil Supplies Corporation and Delhi Consumers' Cooperative Wholesale Store Limited – operated nearly 475 shops, there were 375 private liquor stores. With the rollout of Delhi Excise Policy-2021, govt handed over the retail and wholesale liquor business to private entities. Tired of too many ads? go ad free now The policy, however, soon ran into trouble and had to be withdrawn. As a knee-jerk reaction, the then state govt reintroduced the previous excise policy but handed over the retail business to the four govt corporations. According to industry insiders, Delhi's existing retail model, which is a legacy of the past, has drawbacks that hurt consumers, businesses and the state treasury alike. "The govt-run retail structure reduces competition and limits brand availability. This restricts consumer choice, as retailers promote select products instead of offering a diverse range," said an industry insider. A senior Delhi govt official agreed that the four corporations almost "monopolised" the retail business and promoted select brands. The capping on retail margin at Rs 50 for India-made foreign liquor and Rs 100 for foreign liquor, which was discontinued during the nine months in 2022 and 2023 when the new excise policy was in force, returned with the rollback to the old excise regime. "Instead of stocking premium brands that move slowly, the retailers thus keep cheaper brands in a price range of Rs 400–600, which sell faster," said the official. Delhi govt, meanwhile, recently announced that it would soon roll out a new policy, making sale and distribution of liquor in the city transparent and accountable. A high-level committee had been formed under chief secretary for the purpose, it said. An analysis done by the excise department showed that the top 10 brands of liquor sold in Delhi do not figure in the preference list of customers in other states. Officials said the problem particularly existed in the lower category price segments, where the customer found it inconvenient in terms of both time and effort to hitch-hike to the neighbouring state and purchase his or her choice of brand. Allowing brand-pushing leads to overstocking of less popular brands, reducing the space available for brands that are genuinely popular. "This also results in the consumer shifting to neighbouring states, leading to suboptimal sales and consequently, revenue loss to the govt. The menace of brand-pushing not only disregards actual consumer preferences but also undermines fair market competition. It creates an opaque system where certain brands dominate not due to quality or popularity but because of alleged malpractices," said an official. The four govt corporations even planned to introduce a standard operating procedure based on the weighted average of sales patterns of brands across the country, states constituting the national capital region, and within the capital to curb brand-pushing. Industry experts, however, said the retail outlets, if privatised, would automatically stock brands as per consumers' preferences. The industry also blamed the non-availability of well-known Indian brands at Delhi stores for customers going to Haryana and Uttar Pradesh. Anant Iyer, director general of the Confederation of Indian Alcoholic Beverage Companies, said Delhi's excise policy discriminated heavily between IMFL and foreign brands. While all Indian whiskies have to pay a brand licence fee of Rs 25 lakh for each product, Rs 12 lakh per brand for rum, gin, and vodka, Rs 8 lakh for brandy, and Rs 15 lakh for beer, the licence fee for imported liquor is Rs 15 lakh for five brands of whisky, rum, gin, vodka, and brandy, and Rs 50,000 per additional brand. The licence fee for imported wine and liqueur brands is Rs 7 lakh for 10 brands and Rs 50,000 per additional brand. "Some of the prominent single malts are not available in Delhi because the companies decided not to sell here due to discriminatory licence fees. Let there be a level playing field and healthy competition," said Iyer. Poor retail density is another reason why Delhi's revenue from liquor trade has not grown as much as in the neighbouring states of Haryana and Uttar Pradesh. According to industry experts, Delhi has about 762 liquor and wine shops, of which only 603 are operational. This brings Delhi's retail density to 2.7 retail shops per lakh population, against the national average retail density of 5.2. In comparison, the retail density in UP is 4.1 and in Haryana 7.8. Officials said nearly 30% of Delhi living in unauthorised colonies remained completely unserved, leading to smuggling of non-duty-paid liquor from the neighbouring states. Delhi prohibits the opening of liquor shops in non-conforming areas. Officials estimate that the state is losing Rs 1,300–1,500 crore yearly due to the rule. With Delhi govt likely to bring a new liquor policy, the industry players have several expectations. Officials agreed that serious changes were required in certain rules, which may not only create a level playing field for both Indian and foreign players but also prevent customers from going to Gurgaon or Noida to buy their stock. "We are in the process of making certain changes in our policy," said an official. The excise policy in the capital is announced at the beginning of each financial year. The excise department extended the policy of the 2024–25 financial year for three months this year, till June 30, 2025. Sources said the govt may announce a new policy soon. Sanjit Padhi, chief executive officer of the International Spirits and Wines Association of India, said as the national capital, Delhi should be the leading city in providing the best retail infrastructure to both its residents and visitors. "We believe that with a progressive retail policy, the state can provide its consumers not only brand choice but also a retail infrastructure that would be comparable to its neighbouring states in terms of buying experience and choice of leading brands. This would also lead to enhanced revenue, as consumers do not have to travel to neighbouring cities for their favourite brands," Padhi said.

Cheers Next Door: Why Liquor Lovers Head Across Border For Right Choice
Cheers Next Door: Why Liquor Lovers Head Across Border For Right Choice

Time of India

time15-06-2025

  • Business
  • Time of India

Cheers Next Door: Why Liquor Lovers Head Across Border For Right Choice

New Delhi: Until a few years ago, 40-year-old Arun Bhatia, a marketing professional with a multinational FMCG company, always shopped for his preferred brands of liquor in Delhi. The rates were relatively cheaper than in Noida, where he lives, and he trusted the quality more. He would spend considerable time at his favourite shop in Connaught Place, browsing through the various brands available there. The trend changed completely in the last three years. Bhatia and several other liquor enthusiasts in Delhi now visit the ultra-modern liquor shops in neighbouring Gurgaon or Faridabad, where not only are the prices lower, but the variety of Indian and foreign brands in each category of liquor is also huge. Customers visit the liquor showrooms in the neighbouring towns of Haryana and Uttar Pradesh for the sheer experience that is completely missing in the capital, where people are forced to jostle against each other in a small shop and ask for the bottle from across a huge desk or an iron grill. What changed in the last few years was that the retail liquor business in the capital failed to keep pace with other states. Before Nov 2021, when Delhi govt rolled out a new excise policy, there were both state-run stores and private shops involved in the retail liquor business. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like People Born 1940-1975 With No Life Insurance Could Be Eligible For This Reassured Get Quote Undo While the four state corporations – Delhi Tourism and Transportation Development Corporation, Delhi State Industrial and Infrastructure Development Corporation, Delhi State Civil Supplies Corporation and Delhi Consumers' Cooperative Wholesale Store Limited – operated nearly 475 shops, there were 375 private liquor stores. With the rollout of Delhi Excise Policy-2021, govt handed over the retail and wholesale liquor business to private entities. The policy, however, soon ran into trouble and had to be withdrawn. As a knee-jerk reaction, the then state govt reintroduced the previous excise policy but handed over the retail business to the four govt corporations. According to industry insiders, Delhi's existing retail model, which is a legacy of the past, has drawbacks that hurt consumers, businesses and the state treasury alike. "The govt-run retail structure reduces competition and limits brand availability. This restricts consumer choice, as retailers promote select products instead of offering a diverse range," said an industry insider. A senior Delhi govt official agreed that the four corporations almost "monopolised" the retail business and promoted select brands. The capping on retail margin at Rs 50 for India-made foreign liquor and Rs 100 for foreign liquor, which was discontinued during the nine months in 2022 and 2023 when the new excise policy was in force, returned with the rollback to the old excise regime. "Instead of stocking premium brands that move slowly, the retailers thus keep cheaper brands in a price range of Rs 400–600, which sell faster," said the official. Delhi govt, meanwhile, recently announced that it would soon roll out a new policy, making sale and distribution of liquor in the city transparent and accountable. A high-level committee had been formed under chief secretary for the purpose, it said. An analysis done by the excise department showed that the top 10 brands of liquor sold in Delhi do not figure in the preference list of customers in other states. Officials said the problem particularly existed in the lower category price segments, where the customer found it inconvenient in terms of both time and effort to hitch-hike to the neighbouring state and purchase his or her choice of brand. Allowing brand-pushing leads to overstocking of less popular brands, reducing the space available for brands that are genuinely popular. "This also results in the consumer shifting to neighbouring states, leading to suboptimal sales and consequently, revenue loss to the govt. The menace of brand-pushing not only disregards actual consumer preferences but also undermines fair market competition. It creates an opaque system where certain brands dominate not due to quality or popularity but because of alleged malpractices," said an official. The four govt corporations even planned to introduce a standard operating procedure based on the weighted average of sales patterns of brands across the country, states constituting the national capital region, and within the capital to curb brand-pushing. Industry experts, however, said the retail outlets, if privatised, would automatically stock brands as per consumers' preferences. The industry also blamed the non-availability of well-known Indian brands at Delhi stores for customers going to Haryana and Uttar Pradesh. Anant Iyer, director general of the Confederation of Indian Alcoholic Beverage Companies, said Delhi's excise policy discriminated heavily between IMFL and foreign brands. While all Indian whiskies have to pay a brand licence fee of Rs 25 lakh for each product, Rs 12 lakh per brand for rum, gin, and vodka, Rs 8 lakh for brandy, and Rs 15 lakh for beer, the licence fee for imported liquor is Rs 15 lakh for five brands of whisky, rum, gin, vodka, and brandy, and Rs 50,000 per additional brand. The licence fee for imported wine and liqueur brands is Rs 7 lakh for 10 brands and Rs 50,000 per additional brand. "Some of the prominent single malts are not available in Delhi because the companies decided not to sell here due to discriminatory licence fees. Let there be a level playing field and healthy competition," said Iyer. Poor retail density is another reason why Delhi's revenue from liquor trade has not grown as much as in the neighbouring states of Haryana and Uttar Pradesh. According to industry experts, Delhi has about 762 liquor and wine shops, of which only 603 are operational. This brings Delhi's retail density to 2.7 retail shops per lakh population, against the national average retail density of 5.2. In comparison, the retail density in UP is 4.1 and in Haryana 7.8. Officials said nearly 30% of Delhi living in unauthorised colonies remained completely unserved, leading to smuggling of non-duty-paid liquor from the neighbouring states. Delhi prohibits the opening of liquor shops in non-conforming areas. Officials estimate that the state is losing Rs 1,300–1,500 crore yearly due to the rule. With Delhi govt likely to bring a new liquor policy, the industry players have several expectations. Officials agreed that serious changes were required in certain rules, which may not only create a level playing field for both Indian and foreign players but also prevent customers from going to Gurgaon or Noida to buy their stock. "We are in the process of making certain changes in our policy," said an official. The excise policy in the capital is announced at the beginning of each financial year. The excise department extended the policy of the 2024–25 financial year for three months this year, till June 30, 2025. Sources said the govt may announce a new policy soon. Sanjit Padhi, chief executive officer of the International Spirits and Wines Association of India, said as the national capital, Delhi should be the leading city in providing the best retail infrastructure to both its residents and visitors. "We believe that with a progressive retail policy, the state can provide its consumers not only brand choice but also a retail infrastructure that would be comparable to its neighbouring states in terms of buying experience and choice of leading brands. This would also lead to enhanced revenue, as consumers do not have to travel to neighbouring cities for their favourite brands," Padhi said.

Rebuild DDA colonies over 50 years old, LG's task force proposes
Rebuild DDA colonies over 50 years old, LG's task force proposes

Hindustan Times

time11-06-2025

  • Business
  • Hindustan Times

Rebuild DDA colonies over 50 years old, LG's task force proposes

All residential colonies built by the Delhi Development Authority (DDA) that are over 50 years old might have to be reconstructed to bolster their structural safety, if the recommendations of a government-industry task force set up by lieutenant governor VK Saxena are accepted. The task force, which was set up by Saxena in 2024 and comprises the Delhi State Industrial and Infrastructure Development Corporation, DDA, the Municipal Corporation of Delhi and the Confederation of Indian Industry, submitted its report to the LG and industries minister Manjinder Singh Sirsa on Tuesday. To be sure, the recommendations are not binding on the government and a decision will have to be taken by the Delhi government. There are at least 30 residential colonies built by DDA, which was set up in 1957 and reports to Saxena, that are at least 50 years old, spread across the Capital. The report titled 'How to revitalise Delhi: Report of the task force', a copy of which HT has seen, also recommended that circle rates for commercial and industrial property in Delhi should be reduced as they are higher than neighbouring Gurugram and Noida and even Mumbai in some cases. The panel also suggested incentivising slum redevelopment through Public Private Partnership (PPP) projects with commercial activity. 'There are some overarching recommendations in the report that have the potential to change the city's urban and industrial landscape. We will be reviewing the recommendations to frame policies around the viable solutions. The aim is to work towards a developed Delhi with sustainable and environment-friendly infrastructure,' said Sirsa. Citing structural safety concerns and the need for densification, the task force asked the Delhi government and DDA to formulate a legally binding policy that compels redevelopment of these ageing structures, many of which were built in the 1960s and 70s. The proposal includes incentives such as higher Floor Area Ratio (FAR) and faster clearances for developers undertaking such projects. According to the information available on DDA's website, it commenced its housing activities in 1967, and prior to that, some residential societies were under the Land and Building Department, Delhi Administration. In 1969, 27 societies were transferred to DDA for administration, and 99 more were transferred in 1981, with the exception of one society. Today, DDA colonies older than 50 years exist at Safdarjung, Masjid Moth, Saket, East of Kailash, Friends Colony, Munirka, Kalkaji, Madangir, Sunlight Colony, Katwaria Sarai, Pitampura, Rajouri Garden, Shalimar Bagh, Naraina, Wazirpur, Lawrence Road, Paschim Puri (in Paschim Vihar), Janakpuri, Shankar Road, Vivek Vihar, Deshopur, Najafgarh Road, Prasad Nagar, Vikas Puri, Govind Puri, Sheikh Sarai, Rohtak Road, and Yamuna Puri. All of these may be part of the redevelopment proposal if approved by the government. The task force said Delhi's current circle rates are significantly higher than those in Gurugram and Noida, distorting real estate transactions and discouraging investment. Circle rates are the minimum value assigned to a property for registration purposes by the government, used as a benchmark for property valuation and stamp duty calculation. 'Delhi's market has been priced out by its own valuation benchmarks,' the report noted. 'There is an urgent need to realign circle rates with market realities, especially in areas where transactions have shifted to satellite towns.' In premium residential areas, Delhi's circle rates are ₹7.74 lakh per square metre, while the highest residential circle rate is ₹5.5 lakh/sqm in Gurugram and ₹1.19 lakh/sqm in Noida. For commercial areas, Delhi's circle rates are ₹69,820- ₹23.3 lakh/sqm, while in Gurugram the maximum rate is ₹2.36 lakh/sqm and ₹1.19 lakh/sqm in Noida. The maximum circle rate in Mumbai in residential areas is ₹2.36 lakh/sqm and in commercial areas is ₹2.71 lakh/sqm, making Delhi's rates the highest, according to the report. The panel also backed reviving and expanding slum redevelopment projects through the PPP model, allowing developers to integrate commercial components as part of the rehabilitation plan. Inclusion of commercial activity will make these projects financially viable and accelerate transformation on the ground, it said. 'The authority has already approved and recommended the revised norms as an amendment to MPC 2021 which have been submitted to the central government for approval and final notification,' the report stated. The recommendations come at a time when Delhi's housing market is facing a shortage of low income housing. The report also contained proposals for single-window clearances, standardised development control norms across agencies, and timebound approvals for large projects. The 10-point report also recommends reduction in amalgamation charges for commercial plots, no requirement of revised layout plans in MCD areas, having a green building policy to incentivise sustainable infrastructure development, rationalisation of property tax, optimum utilisation of land allotted to DMRC and reduction in FAR for hotel and other commercial plots. Experts said that while it is fine to redevelop aging infrastructure, several other factors should also be kept in mind to ensure that the transition is smooth. 'Redevelopment is definitely welcome as these are old structures that may be weakening and also lack key amenities such as parking. However, such projects need a complete ecosystem like changes within the DDA Act, stamp duty exemption, environmental clearances and alternative accommodation for residents currently occupying the apartments. The project should also be financially viable which is possible with construction of additional flats or commercial development. In residential areas surrounding the Delhi Metro, Transit Oriented Development (TOD) should be considered,' said PS Uttarwar, retired additional commissioner of DDA. Uttarwar also added that civic infrastructure should also be accordingly developed with improved parking, water supply, stormwater drainage and sewer lines.

Delhi to become e‑waste recycling hub with India's first eco‑park. Know details
Delhi to become e‑waste recycling hub with India's first eco‑park. Know details

India Today

time11-06-2025

  • Business
  • India Today

Delhi to become e‑waste recycling hub with India's first eco‑park. Know details

The Delhi government has unveiled plans to build India's first dedicated ewaste ecopark in Holambi Kalan. Spanning 11.4 acres, the facility will be developed under a public–private partnership (PPP) spanning 15 years, following a global tender led by the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC).The facility is designed to process up to 51,000 tonnes of ewaste annually, covering all 106 categories under the EWaste Management Rules an estimated Rs 350 crore revenue stream, construction is scheduled for completion in 18 months, aiming to manage 25 per cent of Delhi's ewaste volume within five years.A CURCULAR ECONOMY GAME-CHANGER India ranks as the world's thirdlargest generator of ewaste, producing over 1.6 million tonnes annually, with Delhi accounting for approximately 9.5 per cent of this recycling efforts remain largely informal; just 17.4 per cent of global ewaste is recycled, resulting in resource loss and environmental Holambi Kalan ecopark will usher in a safe, regulated, and hightech ecosystem, featuring distinct zones for dismantling, refurbishing, component testing, plastic recovery, and a secondhand electronics initiative supports Delhi's transition toward a circular economy, where endoflife devices are repurposed, raw materials recovered, and landfill dependency tender: DSIIDC will issue an RFQcumRFP to attract top greentech partnersConstruction timeline: Completion projected within 18 monthsConcession period: Operated under a DBFOT model for 15 yearsFunding: Total investment estimated at Rs 500 crore, with Rs 150 crore earmarked for setup and Rs 350 crore for operationsSUSTAINABILITY MEETS PUBLIC HEALTHadvertisementBy centralising ewaste processing and formalising operations, Delhi's ecopark will significantly reduce environmental pollution caused by informal toxins from crude ewaste handling contaminate air, soil, and water and pose serious health risks, especially to vulnerable groups like recovery of precious metals, copper, lithium, rare earths, will reduce import dependence and conserve natural only 17.4 per cent of electronic waste currently recycled worldwide, this ecopark aims to flip the script on inefficient waste disposal.

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