The discussions are aimed at closing the revenue gap, as sharp disparities in pricing between Delhi and neighbouring states push many consumers across the border
In an attempt to transform how liquor is sold and consumed in the national capital, the Delhi government is drafting a new excise policy. Reports noted that the plans include the alignment of prices with neighbouring states to prevent the revenue losses from cross-border sales.
The reports emphasised that the discussions are ongoing to remove vends from crowded residential localities. With key changes on the table, the policy is yet to be finalised. Parvesh Verma, the Public Works Department (PWD) minister, is heading a high-level committee.
The discussions are aimed at closing the revenue gap as sharp disparities in pricing between Delhi and neighbouring states push many consumers across the border. The reports explained these result in revenue leakage and supply distortion. The government is looking at revisions to ensure a consistent supply of high-demand products, as premium Indian and global brands are often missing from shelves in the state.
To address public safety concerns, the government is also considering introducing zoning norms that would gradually shift shops away from residential pockets. This is also directed towards reducing friction with local communities. A clean and premium model is being looked at to change the look and feel of the outlets.
While further consultations with retailers and local stakeholders are scheduled, the committee has met with four industry associations. These include the Confederation of Indian Alcoholic Beverage Companies and the Brewers’ Association of India.
