UP govt to introduce new excise policy after facing Rs 5000 crore loss

The Uttar Pradesh government has suffered a loss of about Rs 5000 crore following the Supreme Court order banning all liquor shops along national as well as state highways.

UP excise minister Jai Pratap Singh, said, "Of the 8591 highway liquor shops affected by the Supreme Court order, 2000 are yet to be relocated while 3000 shop owners have surrendered their liquor licences."

The minister said, "We have incurred a loss of about Rs 5000 crore in 2016-17 fiscal ending March 31. Out of the target of realising Rs 19000 crore, the excise department could generate Rs 14000 crore following the apex court order order."

The Supreme court in its December 15, 2016 order had banned the liquor shops within 500 metres on the either side of the national and state highways.

He said, "We are introducing a cashless system in liquor shops and asking them to install point-of-sale (POS) machines. Though it will difficult in rural areas, we are asking shops to switch over to cashless payments."

He added, "We have decided that no liquor shop will be relocated within 500 metre of religious places or hospitals. In case of objection, even residential colonies will come under the ambit. At the moment it is not in a very formal shape. But we are working on it."

The minister said that Yogi Adityanath government will introduce its new excise policy from April 2018 and the government plans to break the syndicate system in liquor trade.

He said, "We are working on the new excise policy before finalising it."

The new excise policy may introduce a system of bar code on each bottle in a bid to check black marketing and pilferage in liquor sale, mostly in country-made alcohol products.

According to an excise official, the bar code would be connected to computer data to ensure each batch is sold by the rightful dealer.