Latest news with #Loksatta
Mint
2 days ago
- Business
- Mint
Liquor stocks gain after Maharashtra govt looks to end 50-year freeze on licenses; United Breweries among top gainers
Liquor stocks rose nearly a per cent in Tuesday's trading session after Maharashtra government is set to end a nearly five-decade-old ban on granting new liquor shop licences, a restriction in place since 1974. According to a report in Loksatta, the state plans to issue 328 new wine shop licences as part of a major shift in its excise policy, intended to boost state revenue. United Breweries shares surged over 1.23 per cent to ₹ 1,980.20 apiece. Som Distelleries share price gained as much as 0.70 per cent to ₹ 153.92 apiece on July 15. Meanwhile, other liquor stocks Sula Vineyards, G M Breweries also surged 0.67 per cent and 0.42 per cent. 'Liquor stocks are in focus for some sessions as the Maharashtra (the third-largest liquor-consuming state in India) will issue 328 new liquor licenses, ending a 50-year ban on granting new wine shop permits. This is likely to improve the distribution network for liquor companies,' said Siddhartha Khemka, Head of Research — Wealth Management at Motilal Oswal. The move comes after suggestions from a newly established committee and is considered a crucial element of Maharashtra's wider plan to enhance revenue through its Excise Department, which already brings in approximately ₹ 43,000 crore annually, ranking it as the state's fourth-largest income source. Under the revamped policy, licences will be offered on a lease basis rather than being sold permanently. Currently, purchasing an old licence in Maharashtra can cost as much as ₹ 10 crore in the open market. However, the new licences will require a non-refundable deposit of ₹ 1 crore, and the government expects to collect around ₹ 35 crore annually in fees, according to The Indian Express report. This policy aims to encourage greater participation in the liquor retail sector and improve accessibility, although concerns remain regarding who will ultimately benefit from the changes. Although Maharashtra has a large and expanding population, the number of licensed liquor outlets has stayed fixed at 1,713 since the 1970s. In contrast, other Indian states have been steadily increasing their number of licences by around 3 per cent annually. Maharashtra, however, falls behind with just 1.5 liquor shops per one lakh people, significantly lower than the national average of six. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Indian Express
3 days ago
- Business
- Indian Express
New wine shop licences will need legislature nod; none issued: Ajit Pawar
Deputy Chief Minister Ajit Pawar Sunday clarified that no new licences have been issued, and any such decision would require the approval of the state legislature, as mandated by a rule in place since 1974. 'A decision was taken back then that liquor shop licences cannot be granted without taking the legislature into confidence. That rule still stands… Alcohol addiction affects men, but the real suffering is borne by women. These rules were made keeping that social impact in mind,' he said. Pawar's remarks came after the Opposition Maha Vikas Aghadi (MVA) accused the government of planning to issue 328 new liquor licences to boost revenue. A report published in Loksatta stated that the state government was set to lift a 50-year-long freeze on issuing new wine shop licences. According to the report, the government will issue new licences as per the recommendation of the recently formed committee. The move is part of a broader strategy to increase revenue through the Excise Department, which is the fourth-largest contributor to the state's income, generating around Rs 43,000 crore annually. With welfare schemes such as 'Mukhyamantri Majhi Ladki Bahin' demanding significant funding, the government is exploring additional sources of income. If the recommendations of a recently formed committee are implemented, the excise revenue is expected to rise by Rs 14,000 crore per year, Loksatta reported. However, the decision has sparked controversy and allegations of conflict of interest. A committee to implement these reforms was formed under the chairmanship of Deputy Chief Minister and Excise Minister Ajit Pawar. Industry experts and opposition leaders questioned the appropriateness of Pawar leading the committee, suggesting it may benefit his close network. NCP (SP) MLA Jitendra Awhad alleged that the government is trying to recover funds spent on schemes like Ladki Bahin by reviving long-suspended licenses. 'This is like turning a brother into a drunkard to run the household for a sister,' Awhad said. 'The moral cost of such a policy will be immense.' Shiv Sena (UBT) MP Sanjay Raut called for an inquiry into the alleged distribution of licences to relatives of ministers. 'Liquor licences are being delivered directly to homes of ruling party MLAs,' Raut said. According to officials, the Excise Department had submitted proposals to increase state excise revenue, including the liberalisation of wine sales and issuing new licences. However, they confirmed that no decision has been made, and the 1974 rule remains binding. Maharashtra currently has around 1,700 foreign liquor and 3,500 country liquor licences, all issued before 1974.
Indian Express
4 days ago
- Business
- Indian Express
Maharashtra govt plans to lift 50-year freeze on new liquor shop licences to boost revenue
In a move aimed at boosting the state revenue, the Maharashtra government is set to lift a 50-year-long freeze on issuing new wine shop licences. According to a report published in Loksatta, the government will issue 328 new licences as per the recommendation of the recently formed committee. If implemented, this will mark the end of a ban in place since 1974 following public resistance. The move is part of a broader strategy to increase revenue through the Excise Department, which is the fourth-largest contributor to the state's income, generating around Rs 43,000 crore annually. With welfare schemes like 'Mukhyamantri Majhi Ladki Bahin' demanding significant funding, the government is exploring additional sources of income. If the recommendations of a recently formed committee are implemented, the excise revenue is expected to rise by Rs 14,000 crore per year, Loksatta reported. However, the decision has sparked controversy and allegations of conflict of interest. A committee to implement these reforms was formed under the chairmanship of Deputy Chief Minister and Excise Minister Ajit Pawar. Critics have raised concerns over this appointment, pointing out that individuals closely associated with Pawar are involved in the liquor industry. A large alcohol manufacturing plant in Baramati, believed to be linked to his associates, has become the focus of this debate. Industry experts and opposition leaders have questioned the appropriateness of Pawar leading the committee, suggesting it may benefit his close network. Attempts to seek a response from Pawar were unsuccessful at the time of reporting. The new policy is expected to increase the number of retail liquor shops by 19 per cent across the state. Currently, Maharashtra has 1,713 licensed liquor outlets, a number that has remained unchanged since the 1970s. A previous attempt to increase licences was rolled back due to opposition from prominent socialist leaders like N D Patil and Mrinal Gore. Under the revised rules, liquor shop licences can now be leased. While purchasing an old license costs nearly Rs 10 crore in the open market, the new licenses will be available for a non-refundable deposit of Rs 1 crore, with the state earning approximately Rs 35 crore annually through licence fees. Compared to neighbouring states, where there are around six liquor shops per one lakh population, Maharashtra has only about 1.5 per lakh. Other Indian states have seen a consistent 3 per cent annual increase in wine shops, whereas Maharashtra has kept the sector stagnant. '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, told The Indian Express.
Indian Express
01-07-2025
- Business
- Indian Express
Govt: Secured over 40 plus GI tags for products including Kolhapuri chappal
The Maharashtra government has announced steps to protect and promote traditional crafts and manufacturing skills of the state, following reports that Italian luxury brand Prada showcased footwear resembling the Kolhapuri chappal in its Spring-Summer 2026 menswear collection. The move aims to strengthen branding and secure copyright protection for local artisans and their products. 'We have secured more than 40 plus GI tags for Maharashtra specific products including the Kolhapuri chappal. That is why it has become an issue for Prada now and they are in a legal soup. Some very positive news will come for kolhapuri chappal makers in the coming few days due to this GI tags that we have obtained. We are now in the process of getting 30 more GI tags in the coming few months,' Maharashtra Development Commissioner Deependra Singh Kushwah said during an industry-oriented conclave in Mumbai organised by Loksatta at the World Trade Center. Kolhapuri chappals have the geographical indication (GI) tag that certifies how a product originates from a specific geographical area and possesses qualities or a reputation because of that origin. A GI tag helps preserve traditional knowledge, cultural heritage, and the livelihoods of its local practitioners. Kushwaha said that Maharashtra was also committed to facilitate the building of brands manufactured in India that command global respect and value. He said that the state government has proposed a One District One Product (ODOP) scheme where 72 unique products, two from each district that reflect the state's rich cultural and economic diversity, will be nurtured. The scheme is aimed at enhancing value chains, boost market access, and empower local producers. The programme includes capacity building by training producers to understand market dynamics, consumer demands, and business development strategies and also collaborate with institutions like the National Institute of Design to improve product aesthetics, packaging, and marketability. It includes setting up district-level quality testing laboratories, to ensure product quality and consumer trust and authenticate the value chain. Kushwah said that Maharashtra is also the only state where all districts are engaged in export activity with five key districts contributing 75 per cent of the state's total exports, and the next five accounting for an additional 20 per cent. The remaining 26 districts contribute to 5 per cent of the total exports. He said that the states aim was to increase the total value of exports from all the districts for which the Maharashtra government is currently supporting 30 export-oriented industrial parks, and over the next 4–5 years, these parks will receive targeted grants and policy support.
