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Rs 5,300 crore in Delhi government coffers after first round of bidding for liquor shops

Under the earlier excise policy, a total of Rs 6,358 crore was collected in 2019-2020 financial year after collection of various taxes including excise duty from Indian and foreign liquor.

Published: 07th August 2021 07:18 AM  |   Last Updated: 07th August 2021 07:18 AM   |  A+A-

Liquor

For representational purposes (Express Illustrations)

By Express News Service

NEW DELHI:  The Delhi government has earned around Rs 5,300 crore in the initial rounds of bidding for liquor vends in 20 zones across the city. The auction of 16 zones out of the 20 was done on Thursday and remaining four zones went in the block on Friday,  officials said.

According to the tender process, each party was allowed to participate in bidding for two zones, they said. "The tender process forbids a party from bidding in more than two zones, which will bring in more players into the market, thus preventing instances of monopoly," they claimed. 

A zone-wise revenue of around Rs 265 crore is further expected from the bidding for the remaining 12 zones. Under the earlier excise policy, a total of Rs 6,358 crore was collected in 2019-2020 financial year after collection of excise duty from Indian and foreign liquor, VAT collected from wholesale and retail sales, HCR excise, and retail licensing fees.

Under the new policy, in addition to the Rs 8,800 crore that is estimated to be earned from the auctions, the additional projected revenue after collecting excise duty, VAT, Import Fees and other fees could be around Rs 650 crore. This would take the total projected revenue close to Rs 9,500 crore. Of the 20 zones, each having 27 retail liquor vends, 12 zones or nearly 324 shops were shared by six private firms. 

The new Excise Policy of the Delhi government divides the national capital into 32 zones. Of them, the auction of 12 zones was cancelled due to lack of adequate bidders and fresh tenders will be floated for them, officials said.

The biggest grossers for the government was zone 31 comprising New Delhi Municipal Council (NDMC) and Delhi Cantonment area, that earned the highest price of Rs 315 crore, against a reserve price of `217 crore. Zone 32 or airport zone earned Rs 235 crore against a reserve price of Rs 105 crore.

Zone 19 comprising Daryaganj, Chhatarpur, CR Park, Sangam Vihar, Chandni Chowk and other areas went for Rs 313 crore against reserve bid price of Rs 225 crore.  The reserve bidding price was set at Rs 221 crore and the tenders were awarded at an average premium of 20 per cent with the average bid price being Rs 265 crore. 

Aiming international standard at retail outlets in the city

The new excise policy aims to have liquor stores of international quality in the city. The tenders for 32 zones were floated by the Excise department in June. The successful bidders will be have L-7Z or L-7V licences for retail sale of liquor



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