Hoteliers question move to put OTDC in charge of beach shacks

The hoteliers have demanded that the bar licence fee be collected monthly instead of quarterly as mentioned in the policy.
Image used for representational purposes only. (Photo | Flickr)
Image used for representational purposes only. (Photo | Flickr)

BHUBANESWAR: Hoteliers and people in liquor trade have questioned the ‘move’ of the state government by permitting Odisha Tourism Development Corporation (OTDC) only to manage the beach shacks where serving liquor has been allowed.

As per the Excise Policy 2023-24, OTDC or operators engaged by it can run the beach shacks, which will be allowed to operate throughout the year or for a period as decided by the Tourism department depending on the climatic condition.

The annual ‘on’ licence fee for each beach shack has been fixed at Rs 50,000 and the licence will be granted to OTDC, which will also lift all liquors. Beach shack licence will be treated as a special category of ‘restaurant on’ licence and OTDC will be responsible for ensuring that only Odisha registered duty paid liquor is served in such beach shacks.

The Hotel and Restaurant Association of Odisha (HRAO) and people in the trade have objected to the way OTDC has been allowed to operate the beach shacks. They said since serving of liquor has been allowed in such events, approval should be based on merit and proposal.

HRAO chairman JK Mohanty said OTDC is a competitor like other licencees. The Tourism department should fix a criteria and invite proposals to operate the beach shacks instead of authorising OTDC to manage the shacks or select the operators. “Anyone who is selected by the Tourism department will operate. How can a licencee choose other operators?” he wondered.

Wine merchants have also expressed reservations on the hike in minimum guaranteed quantity (MGQ). Citing that around 30 shops, including 18 off shops and 12 on shops have been closed in Bhubaneswar alone for failing to achieve MGQ, the wine merchants have urged the state government to have an option for carrying forward the shortfall.

Former president of Khurda wine merchants’ association Prabhat Kishore Dash said some of the licencees, whose shops have been closed, have moved the high court seeking a favourable direction on MGQ. “When the purchasing ability of people has gone down in the state post Covid, the hike in MGQ is an extra burden on us. It should have an option to carry forward the shortfall for the next year,” he said.      

The hoteliers have demanded that the bar licence fee be collected monthly instead of quarterly as mentioned in the policy. In February, Excise Minister Niranjan Pujari had directed that the bar licence fee will be collected on a monthly basis, Mohanty said.

Another restauranter pointed out that there is no mention of gender equality in bars in the policy and there is no clarity on women or transgenders working as bartenders. The state government should come out clear on this and it should be open to women and transgenders to work, he said and added that one-day liquor licence approval for private outdoors events should also be given for late night events like it is given to bars.

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