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Last Updated : Nov 27, 2015 09:16 AM IST | Source: CNBC-TV18

Liquor cos' revenues to hurt from Bihar alcohol ban

The state, which earns Rs 4,000 crore annually from the taxes collected from the liquor sales, will now come up with plans to make up for the losses.

Bihar Chief Minister Nitish Kumar today announced a ban on sale of alcohol effective April 1, 2016. By keeping the promise made during the election campaign, the recently re-elected CM has made Bihar the fourth dry state after Gujarat, Nagaland and Manipur.

The state, reported to earn Rs 4,000 crore annually from the taxes collected from the liquor sales, will now come up with plans to make up for the losses. The ban is also going to be a huge negative for companies like Globus Spirits, United Spirits Limited and Radico Khaitan as Bihar forms a significant portion of their revenue.

Speaking to CNBC-TV18, Ajay Alok, JDU Spokesperson says the five months time is sufficient for formulation of a strategy to discourage illegal liquor trade. 

Meanwhile, Nitin Mathur of Societe Generale says the total alcohol market that comes from Bihar is about 5 percent and state regulations like these may risk the foreign alcohol companies.
First Published on Nov 26, 2015 02:51 pm
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