The recently approved state excise policy, endorsed by the cabinet aims to boost the utilisation of locally cultivated fruits and herbs in liquor production and establish micro-distillation units in Uttarakhand’s hilly areas.
With a targeted 10 per cent increase in revenue for the financial year 2024-2025, rising from Rs 4,000 crore to Rs 4,400 crore, alcohol prices are anticipated to climb by 5 to 10 per cent.
The policy introduces a bulk license (FL-2) for liquor distribution to private entities. Wholesale licenses for supplying internationally branded domestically manufactured liquor will be granted to ‘Native permanent residents of Uttarakhand,’ a shift from the current practice where liquor companies exclusively handle wholesale operations.
To combat adulterated liquor circulation, enhance the state’s image as a tourism hub, and augment revenue, the policy emphasises establishing micro-distillation units in hilly regions to promote innovation and investment.
Focusing on the use of locally grown plants, herbs, fruits, and flowers in liquor production, the policy aims to position the state as a hub for aromatic wine production. In the hills, the license fee is set at Rs 5 lakh, half that of the plains, with a minimum shop area requirement of 400 sq ft.
The policy introduces seasonal bar licenses and encourages small liquor outlets in tourism hotspots. Liquor shop allocations will occur in two phases, with a lottery system in the first phase and the remainder based on a first-come, first-serve basis.
Renovation is permitted for shops with no outstanding liabilities and secured premises, but ownership of more than three shops is prohibited under the new regulations.
