Terming it a “smashing success”, the Delhi government on Friday claimed its recently-announced excise policy had broken all estimates and targets of revenue generation from the bidding process and is set to take excise revenue figures up to ₹10,000 crore.
According to the government, it has already earned around ₹5,300 crore in the initial rounds where licenses in 20 zones were awarded. A zone-wise revenue of around ₹265 crore is further expected to be received from the bidding of the remaining 12 zones.
Ending monopoly
“The Delhi government’s new Excise Policy 2021-22 aims at minimising corruption and providing fair competition in liquor trade, as seen in the recent tender bidding process,” the government stated.
“Beating all estimates and targets, the 20 zones that have been awarded have already generated around ₹5,300 crore in revenue in the bidding process,” it also stated.
According to the government, the tender process forbids a bidder from bidding in more than two zones, which will bring in more players into the market preventing instances of monopoly.
Under the previous excise policy regime, the yearly growth rates in revenue were limited to 5 to 7% but under the new policy a growth of around 35% is expected and is well on track to achieve, the government stated.
Under the previous excise regime, the government said, a total of ₹6,358 crore was collected in the fiscal year 2019-2020 after collection of excise from Indian and foreign liquor, VAT collected from wholesale and retail sales, HCR excise, and retail licensing fees.
Under the new policy in addition to the ₹8,800 crore expected from the auctions, the additional projected revenue after collecting excise, VAT, import fees, CSDN, HCR Licenses, Wholesale Licenses, and HCR VAT will be approximately ₹650 crore, taking the total projected revenue close to ₹9,500 crore.
