What happens to highway liquor sales after SC ban: five points

The apex court in its December 15, 2016 order had ruled that licenses of existing shops along national and state highways will not be renewed after March 31.
A closed liquor shop near a highway in Nagpur, Maharashtra, on Sunday | File photo by PTI
A closed liquor shop near a highway in Nagpur, Maharashtra, on Sunday | File photo by PTI

The Supreme Court's order of ban on liquor sales next to national and state highways has sent many states in a tizzy. Below are five key points you need to know with respect to the after-effects of the SC order. (READ MORE)

 The first and immediate concern is the loss of revenue from shutting thousands of liquor shops. This estimated loss of revenue ranges roughly between Rs 720 cr to Rs 15,000 cr from state to state, as per TNIE's calculation.

Here are the states and their revenue loss numbers (per year figures):

PunjabRs 15,000 cr 
MaharashtraRs 7,000 cr 
Tamil NaduRs 6,000 cr 
Uttar PradeshRs 6,000 cr 
Telangana Rs 5,000- 7000 cr 
Andhra PradeshRs 1,425 cr 
KeralaRs 5,000 cr 
West BengalRs 5,000 cr 
AssamRs 720 cr 
OdishaRs 1,100 cr 
ChattisgarhRs 2,200 cr 

 Along with loss of revenue due to sales, there is also a loss of jobs. NITI Aayog CEO Amitabh Kant noted that this ban may hit 1 million jobs in the country. States like Tamil Nadu, which is dependent on taxes from liquor sales and has independent liquor employees unions (TASMAC employees Union), are worst hit with already 12,000 people thrown out of their jobs. (READ MORE)

 As pubs and restaurants close to highways also come under the ambit of the SC ban, their shutting down of bars would mean losses for the tourism industry. 

 Union Minister for Tourism Mahesh Sharma was quoted saying that he was eager to find a "middle-ground" to this ban. With states like Maharashtra and Kerala exploring ways to circumvent the ban, newer ideas are already emerging around "middle-ground". These include extending liquor sales' business timings to 12 hours in all other outlets and denotifying state highways into normal municipal or local roads. (READ HERE)

 The SC has issued this order keeping in mind safety on roads. But relocation of liquor outlets away from highways costs States like Tamil Nadu and Kerala heavily, where alcohol is sold in retail only by State-run outlets like Tasmac and Bevco respectively. (READ MORE)

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