Rs 10,000-cr jolt to TN

With the immediate closure of more than 3,000 liquor shops along the state and national highways following a Supreme Court order, the Tamil Nadu government will face a financial loss of more than Rs 10,000 crore.

This will directly affect the spending on freebies, which were promised by the ruling party, as the funds were managed from the sale of liquor.

About 6,000 liquor shops were thriving in the state; however, after the apex court’s direction the government was forced to shut a total of 3,450 liquor shops along the highways.

A senior official from the Tamil Nadu State Marketing Corporation (TASMAC) told DH on Sunday that the government earned about Rs 25,000 crore from sale of liquor last year. Every year, the sales increased by about 20%.

The state-owned TASMAC, which runs the liquor shops, is the second highest revenue accumulator after the tax department.

With the AIADMK government already ordering closure of 1,000 liquor shops as part of its poll promise, the revenue from the sale of liquor was expected to be only about Rs 20,000 crore this year. However, with the closure of another 3,450 liquor shops following the apex court’s order, the government is now expected to get only about Rs 10,000 crore.

Though the state government is trying to relocate the liquor shops, which were closed, the authorities are finding it tough to find alternative spots as people are objecting to it.

“Even if we find an alternative place, people are objecting,” a TASMAC official said. He also hinted that only a few hundred liquor shops are expected to be relocated.