Delhi’s new excise policy to be ‘better’, with ‘higher’ profits

The draft recommendations also include an increase in per-bottle margins for retailers, from the current ₹50 for Indian Made Foreign Liquor (IMFL) and ₹100 for imported alcohol, to a higher, still undisclosed, amount.

The Delhi government’s upcoming excise policy may soon bring sweeping changes to how liquor is retailed in the city with proposals for larger, better-designed government-run stores and higher profit margins for retailers. The draft policy, currently in its final stages, is being prepared by a committee chaired by Public Works Department (PWD) Minister Parvesh Verma, and is likely to be finalised after a meeting on Monday.

Delhi’s new excise policy to be ‘better’, with ‘higher’ profits

According to senior officials, the draft proposes the continuation of the existing retail model, where four government corporations manage liquor sales, effectively ruling out a return of private players that had been proposed in the now-scrapped liquor policy floated by the previous government.

“The policy is expected to retain the current system in which only Delhi government corporations regulate the vends based on licenses,” said a senior government official aware of the matter.

The draft recommendations also include an increase in per-bottle margins for retailers, from the current ₹50 for Indian Made Foreign Liquor (IMFL) and ₹100 for imported alcohol, to a higher, still undisclosed, amount. The move, officials said, is aimed at encouraging retailers to stock premium brands and maintain a wider range of options for consumers.

“A higher margin will incentivise stores to offer quality liquor instead of focusing on cheaper varieties. It will also discourage aggressive brand pushing by sales staff,” the official said.

Delhi currently has over 700 liquor vends operated by four government agencies — the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC), Delhi Tourism and Transportation Development Corporation (DTTDC), Delhi State Civil Supplies Corporation (DSCSC) and Delhi Consumers’ Cooperative Wholesale Store (DCCWS).

The committee is likely to recommend that these corporations upgrade their existing infrastructure and establish bigger, better-outfitted liquor stores in malls and commercial complexes to enhance customer experience.

“The idea is to create more organised and spacious outlets to reduce crowding and improve service. NCR cities already have such swanky stores that look appealing. More stores in malls and commercial areas will likely be allowed,” the official added.

At present, a large number of vends function from small rented spaces, often resulting in congestion and long queues outside shops. The new draft, officials said, may also suggest stricter zoning regulations to ensure that liquor shops are located away from residential areas, educational institutions and religious sites.

In August, chief minister Rekha Gupta constituted the committee to frame the excise policy, with an emphasis on regulatory clarity and consumer convenience. The committee has since held multiple rounds of consultations with industry stakeholders, including manufacturers, wholesalers and retailers, and reviewed liquor policies implemented in other states.

The move comes even as Delhi continues to operate under its current excise regime — reinstated in September 2022 — after the Aam Aadmi Party (AAP) government’s 2021-22 excise policy was scrapped amid corruption allegations. The ongoing policy, commonly referred to as the “old excise policy,” has been extended several times and remains valid until March 31, 2026.

The draft proposals will be placed before the Cabinet after final approval from the committee. Following this, the policy will undergo public consultation before being sent to the lieutenant governor for the final nod.