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UP’s new excise policy allows beer, IMFL, and foreign liquor to be sold together, but on-site consumption is banned. Licences will be available via e-lottery for 2025-26
The Yogi Adityanath-led government in Uttar Pradesh has introduced a significant change to its excise policy. During a cabinet meeting chaired by the Chief Minister on Wednesday evening, a new policy was approved, paving the way for the issuance of composite shop licences.
This policy would allow beer, Indian-made foreign liquor (IMFL), and foreign liquor to be sold in the same establishment. However, on-site consumption of alcohol at these combined stores would remain prohibited.
According to sources, licences for retail outlets selling IMFL, beer and bhang for the fiscal year 2025-26 will be granted through an e-lottery system. Existing licences will not be eligible for renewal in this financial year; the provision for renewal will come into effect from 2026-27.
The licence fee for premium retail shops remains unchanged at Rs 25 lakh per annum. The government has set an ambitious revenue target of Rs 55,000 crore for the excise department, a substantial increase of Rs 4,000 crore from the previous year.
The new policy also introduces 60ml and 90ml bottles for foreign liquor. Additionally, premium brand shops will no longer be permitted to operate within multiplex areas of shopping malls.
However, they can be established within the main building of airports, metro stations, and railway stations upon obtaining a No Objection Certificate. The previous requirement of having the main entrance located inside the building has also been removed.
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Uttar Pradesh, India, India