Mumbai | July 13, 2025
In a major policy shift, the Maharashtra government is planning to lift a 50-year-old freeze on issuing new liquor shop licences. This move is aimed at increasing the state’s revenue, especially through the Excise Department, which currently generates about ₹43,000 crore a year.
A government-appointed committee has recommended issuing 328 new retail liquor licences across the state. If implemented, this would raise the total number of shops by 19% — a significant change since the ban was imposed back in 1974 due to public opposition.
Why Now?
The decision is part of a broader effort to raise funds for state welfare schemes like Mukhyamantri Majhi Ladki Bahin, which require substantial financial support. If the recommendations go through, the Excise Department’s revenue could rise by ₹14,000 crore annually, according to reports.
Controversy Over Ajit Pawar’s Role
The move has stirred controversy due to Deputy Chief Minister and Excise Minister Ajit Pawar heading the committee that proposed the reforms. Critics have questioned his involvement, pointing out alleged links between his associates and the liquor business — especially a major alcohol plant in Baramati.
Opposition leaders and industry experts have raised concerns about a possible conflict of interest, though Pawar has not publicly responded to the allegations.
Key Highlights of the Proposed Policy
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19% Increase in Shops: Maharashtra currently has 1,713 licensed liquor shops — a number that hasn’t changed in decades. The new policy will add 328 more.
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Leasing Option Introduced: The new licences will be issued with a non-refundable deposit of ₹1 crore. This is in contrast to the ₹10 crore people currently pay on the open market to buy old licences.
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More Revenue for the State: Apart from deposits, Maharashtra expects to earn around ₹35 crore annually from new licence fees.
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Catching Up with Other States: Compared to neighbouring states, where there are about 6 liquor shops per 1 lakh population, Maharashtra only has 1.5. Other states increase their shop count by 3% annually, but Maharashtra’s count has remained static.
What Officials Say
Dr. Rajgopal Deora, Additional Chief Secretary of the Excise Department, justified the move, saying, “Given the size and population of the state, expanding the number of retail liquor outlets is both necessary and reasonable.”
