Delhi will have only swanky private liquor shops from today. Here’s why

People que outside liquor shop in Connaught Place, New Delhi (File Image )

With its new excise regime rolling out from November 17, the Delhi government has formally exited the liquor trade. Henceforth, liquor will be sold only in privately-owned vends, which promise to offer a swanky customer experience in the national capital.

The capital will now have 850 liquor stores, where people will be able to walk in and pick the brand of their choice much like in a supermarket.

READ: Delhi's new liquor rules: Booze can be served till 3 am, no crowding near vends and more

November 16 was the last day of operation for 600 liquor vends run by the Delhi government across the city and the liquor business will now be completely handled by private players.

Here's all you need to know about Delhi’s new liquor policy:

New regime, new experience

Under the new excise policy, retail liquor sale licences have been allocated to the highest bidders in 32 zones. One retail licensee will have 27 liquor shops per zone.

Before the new policy was rolled out, Delhi had 849 liquor vends of which 276 were privately run. The private liquor vends had already shut operations on September 30, and those run by the government wrapped up their business on November 16.

Under the new regime, the retail stores in Delhi will get rid of their iron grilles and allow buyers to browse and purchase brands of their choice, according to a report in Hindustan Times. The shops will be spacious, well-lit and air-conditioned to allow customers a walk-in experience under camera surveillance. The shops will do business from 10 am to 10 pm, while those at the airport will be open round-the-clock.

The licensees include independent restaurants or gastro-bars, which may serve any Indian or foreign liquor on a balcony, terrace, lower area of the restaurant or other areas on the condition that the alcohol serving area is screened off from public view, according to a PTI report. They can also play live music and have professional performances, bands, DJs, karaoke, singing and dancing on the premises, the report said.

Initial hiccups

Liquor traders said that the availability of liquor will be affected for the first few weeks. This is because only about 350 vends have been issued provisional licenses for retail trade of alcohol so far as against the 850 stipulated under the new regime.

Also, read: Here is why Delhi residents have to wait to get liquor delivered at their doorsteps

“Not more than 250-300 shops will be able to function on the first day. There may be some shortage in the initial days due to there being fewer shops. However, this will end as new vends come up,” Delhi Liquor Trade Association President Naresh Goyal told the media.

Prices to go up

Prices may spike a little for some time. The excise department, which is in the process of fixing the maximum retail price (MRP) of brands to be registered in Delhi, said the wholesale price of all types of liquor is likely to increase by 8-9 per cent, a PTI report said.

The impact on the wholesale price due to incorporation of factors such as central sales tax at 2 per cent, profit margin for the wholesalers, import pass fee as well as freight and handling charges, as approved in the Excise Policy 2021-22, will lead to a 10-25 per cent rise in prices of some brands of whisky (Indian manufactured foreign liquor), with fluctuation per unit from 8 per cent (Royal Stag Premier) to 25.9 per cent (Blenders Pride Rare), the government had said in an order last month.

On November 15, the Delhi government today told the Delhi High Court that till now, 200 liquor brands have been registered under the Delhi Excise Policy 2021-22 and MRP has been fixed for 184 of them.

The objective

The Delhi government said it has exited liquor business primarily to boost revenue, rein in the liquor mafia and improve the customer experience

Also, read: Explained | All you need to know about Delhi's new excise policy

The new policy, the government said, aims at revolutionising the consumer experience by replacing the existing liquor vends with swanky liquor stores.

The bidding process was concluded by the Excise Department in two phases in August and September and earned the government revenue of over Rs 8,900 crore, according to reports.

Excise reforms announced today will act as a major blow to liquor mafia in Del. The mafia will do everything to obstruct these reforms. AAP govt has ended mafia raj in many sectors like education, water, elect, health etc. We r committed to reforming this sector too https://t.co/pbk1NnfhO2

— Arvind Kejriwal (@ArvindKejriwal) March 22, 2021

The super-premium retail vends

In addition, there will also be five super-premium retail vends across the city — each on an area of 2,500 square feet.

Also, read: Two teetotallers, Yogi and Kejriwal, lead reforms in India’s outdated liquor policies

A liquor tasting facility will be available in these vends, which will sell beer priced above Rs 200 (MRP) and other spirits priced above Rs 1,000, including but not limited to whiskey, gin, vodka, brandy etc. The location of these super-premium vends has not been finalised yet.

The new policy also allows home delivery of liquor in the national capital through websites and apps.