Ladakh Lieutenant Governor Vinai Kumar Saxena on Sunday approved a new Excise Policy, permitting the sale of hard liquor through retail vends, reducing documents to obtain a licence from 16 to six and extending the liquor availability to four more districts.
The existing restrictive regime had led to an artificial scarcity of liquor, encouraging the consumption of smuggled and spurious alcohol as well as narcotic substances, officials said.
Under the new policy, the sale of hard liquor, including Foreign Liquor and Indian Made Foreign Liquor (IMFL), has been permitted through retail vends. Earlier, only beer, wine and ready-to-drink beverages could be sold through retail outlets, a spokesperson said.
In an expansion bid, the administration has decided to open 20 liquor vends through e-auction, compared to only two operational vends earlier, the spokesperson said.
"Liquor availability will also be extended to the districts of Nubra, Changthang, Sham and Zanskar, whereas it was previously confined largely to Leh city", officials said.
The policy also allows retail sale of liquor in guest houses and homestays upon payment of the prescribed licence fee, the officials said.
"Beer bars with micro-breweries have been permitted for the first time in Ladakh. Hotels will now be allowed to serve liquor within their premises, including guest rooms, instead of restricting consumption to bars alone," they added.
Rationalisation of excise duty rates on liquor, beer and wine has been undertaken and a simplified duty structure with a uniform excise duty of Rs 500 per litre of pure alcohol across all IMFL brands has been introduced."Manufacturers will also be allowed to undertake wholesale distribution of liquor to improve supply chains and availability of quality brands", the spokesperson said.
To enhance ease of doing business, the number of documents required for obtaining an excise licence has been reduced from 16 to six, the officials said.
"The requirement of obtaining the opinion of the district administration for grant of a licence has also been removed," they added.
The policy further permits serving liquor at private functions and in banquet or party halls on payment of the prescribed fee, a provision that was not available earlier.
To boost revenue, the annual fee for wholesale licences has been increased from Rs 3.5 lakh to Rs 5 lakh, the officials said, adding that the base price for retail vends has been fixed at Rs 60 lakh in Leh municipal wards and Rs 30 lakh in other areas.
"Retailers' profit margins have been reduced from 12 per cent to 10 per cent," they added.
The policy incorporates strict enforcement measures, including cancellation of licences and forfeiture of earnest money deposits for selling liquor above the maximum retail price, they said.
"Manufacturers and importers will be required to affix department-approved security holograms on liquor products to improve traceability and prevent duty evasion," they added.
As part of environmental safeguards, the sale of liquor in plastic bottles has been prohibited. Liquor will only be sold in approved glass bottles, PET bottles and tin cans.
The policy also mandates that liquor vends comply with a minimum distance of 100 metres from religious places, educational institutions, hospitals and public parks, in line with Government of India guidelines.
The policy, approved after consultations with civil society groups, religious organisations, public representatives and government officials, seeks to create a transparent, accountable and technology-driven excise framework while promoting tourism, optimising revenue and strengthening regulatory oversight, the officials said.
The objective of the policy is curbing the growing dependence on narcotics and psychotropic substances and providing wider access to low-alcohol-content beverages through regulated channels, they said.
Saxena said the revised policy aims to establish a balanced framework that addresses public concerns, curbs illegal trade, supports tourism and economic activity, and reduces dependence on narcotic substances through lawful and regulated alternatives.
He reiterated the administration's commitment to transparency, accountability and public welfare while implementing the new excise regime across the Union Territory.