BENGALURU: The Karnataka government is likely to issue notification on the proposed auctioning of unused CL-2 (retail liquor shops), CL -9 (bars & restaurants) and 11-C (government-owned Mysore Sales International Limited retail outlets) licences next week, informed sources told TNIE.
Chief Minister Siddaramaiah, in his budget on March 7, had announced the proposal to “allocate unused liquor licenses through a transparent electronic auction, which is expected to aid in additional resource mobilisation to the state.”
“There are around 600 unused licences in the state out of which there are approximately 200 CL-2 licences, 100 CL-9 and 293 MSIL licences, which will be placed under auction for resource mobilisation,” added the sources.
The Excise Department is preparing the list of these licences, which will be submitted to the government along with the proposal for their allotment in the districts. “If not all, majority of the CL9 licences are likely to be allotted to Bengaluru Urban District (BUD). The final decision on auction and allotment of licences will, however, rest on the government,” said sources. The BUD is divided into eight excise districts, with the eighth district comprising BTM Layout, Hosur Road, Anekal taluk etc being the highest excise revenue generator.
In Karnataka, new CL-2 and CL-9 licences were issued in 1992. The MSIL licences were issued in two batches; in 2009 and 2016 and thereafter there was a freeze on these licences. In the absence of new fresh licences (CL-2, CL-9), the old ones have become the proverbial golden geese for the original licencees.
Hike in lower segment IML likely
The government is also likely to hike the prices of Indian Made Liquor (IML) in the first four slabs (with the lowest MRP) next month, said sources. “There may be a marginal increase in the Additional Excise Duty (AED), which would result in a price push by Rs 10 to Rs 15 for 180 ml in the lowest slabs,” said sources. The first four slabs of IML with the lowest Maximum Retail Price (MRP) contribute around 80 percent towards the excise revenue. The MRP in these slabs, which ranges between Rs 65 and Rs 80 per 180ml, is lesser than the neighbouring states.