SRINAGAR: Lieutenant Governor of Ladakh Union Territory Vinai Kumar Saxena has approved a new excise policy for Ladakh that liberalises the existing liquor regime, expands regulated access to alcoholic beverages and simplifies licensing procedures in the cold desert.
Now sale of hard liquor including foreign liquor and Indian Made Foreign Liquor (IMFL) would be permitted in retail vends while the number of liquor vends would increase from two to 20 in the UT.
The new policy was framed by LG administration after extensive meetings with civil society organisations, NGOs, religious organisations, public representatives and government officials, in recent months.
According to an official spokesman, a committee of officers was constituted to draft a revised excise Policy for the Union Territory after holding talks with all the stakeholders.
The committee examined in detail the aspects concerning public convenience, prevention of illicit liquor trade, its societal impact, augmentation of excise revenue, transparency in allotment of vends, streamlining of licensing procedures, digitisation of departmental processes and strengthening of enforcement mechanisms, he said.
The key feature of the new excise policy is liberalisation of the existing restrictive regime, which had resulted in limited availability of brands and outlets in the UT and prompted tourists to carry liquor with them from outside the Ladakh region causing revenue loss to the UT.
The policy seeks to address this “artificial scarcity” by expanding lawful supply channels, while maintaining strict regulatory oversight.
As per the new excise policy, sale of hard liquor, including foreign liquor and Indian Made Foreign Liquor (IMFL), is now permitted in the cold desert through retail vends.
Earlier, only beer, wine and Ready-to-Drink (RTD) beverages were permitted for retail sale through vends.
Excise duty rates have been rationalised for liquor, beer and wine.
“For the first time, retail vend of liquor has been permitted in guest houses and homestays, on payment of requisite licence fees,” the official spokesman said.
Earlier, only hotels were permitted to serve liquor. For the first time, beer bars with microbreweries would be allowed in Ladakh.
“To improve accessibility and ensure regulated availability, 20 liquor vends would be opened through e-auction,” the spokesman said.
Earlier, only 2 liquor vends were operational in Ladakh.
Liquor will now be available in new districts – Nubra, Changthang, Sham and Zanskar, providing greater accessibility to tourists.
Earlier, liquor was only available in Leh city.
Consumption of liquor is now allowed within the hotel premises including in the rooms. Earlier, liquor consumption was restricted to bars.
Number of documents required for obtaining excise licence, reduced to just 6. Earlier, 16 documents were required.
The requirement for the opinion of the district administration for the grant of a licence is now removed. Earlier, the opinion of the district administration was mandatory and used to take several months.
Permission has been granted to serve liquor on special occasions at private places, after paying the requisite fee. Earlier, it was not allowed. Permission has also been granted to serve liquor in banquet halls/ party halls, etc. on specific occasions, after paying the requisite fee. Earlier, it was not permitted.
The manufacturers shall now be permitted to undertake wholesale distribution of liquor, thereby encouraging the availability of quality brands and improving supply chains. Earlier, this provision was not in place.
“A simplified duty structure has been introduced with a single duty framework at wholesale and retail levels,” the official spokesman said.
Earlier, multiple duty structure at the wholesale and retail level.
A uniform excise duty of Rs 500 per LPL has been prescribed across all IMFL brands to prevent revenue leakage and simplify administration.
In order to optimise the excise revenue, the annual fee for a wholesale license has been increased from the existing Rs 3.5 lakh to Rs 5 lakh.
Base price for retail vends too, has been revised.
The base price In Leh Municipal wards has been fixed at Rs. 60 lakhs, while in other areas, it has been fixed at Rs. 30 lakhs.
The Profit margin of retailers too, has been reduced from existing 12% to 10%.
“The new excise policy has effected a major reform by deregulating the existing regime,” the spokesman said.
In the existing regime, Tourism Registration was mandatory for hotels to get a liquor license, but now only GST registration will be sufficient for getting an excise license.
But hotels that are not registered in GST, would be required to furnish FSSAI or tourism registration.
According to LG Saxena, the revised Excise Policy seeks to establish a balanced and pragmatic framework that addresses public concerns, strengthens regulatory oversight, facilitates tourism and economic activity, prevents illegal trade and contributes towards reducing the dependence on narcotic substances, through lawful and regulated channels.
Considering the environmental concerns, the new policy prohibits the sale of liquor in plastic bottles and provides that liquor shall be sold only in approved glass bottles, PET bottles and tin cans.
“The new policy prescribes the licensees to employ any person above 21 years of age, to assist in the liquor business, thereby, increasing employment opportunities for all,” the official spokesman said.
The policy provides that retail vends shall be established only after ensuring compliance with prescribed norms relating to 100-meter distance from religious places, educational institutions, hospitals and public parks, in accordance with Government of India guidelines.
