Despite the Excise Department’s auction process for liquor groups in Punjab, 10 excise groups still remain unallotted. Due to high rates and low profit margins, contractors are showing little interest in acquiring these groups. In light of this situation, the Excise Department has reduced license fees by a total of up to 15% to attract contractors, aiming to allot the pending groups as soon as possible.
**Deadline Set for Applications**
Contractors have reported that the department has now set a final deadline of 4:00 PM on April 4th for submitting applications via e-tender. Under this initiative, several key areas—including New Chandigarh, Bharatgarh (Ropar), Amritsar City Centre, Tanda (Hoshiarpur-2), Dasuya (Hoshiarpur-2), BMC Chowk (Jalandhar East), Phagwara-2, Bus Stand (Pathankot), and Ferozepur Cantt—are among the pending groups that the department seeks to allot promptly. Contractors state that they faced heavy losses during the current financial year, causing them to hesitate in taking up new groups. They also believe that if the government were to increase its control over the sale and distribution of English liquor, the unhealthy competition currently prevailing in the market could be eliminated, thereby bringing stability to the trade. They have urged the government to implement further policy reforms to restore contractors’ confidence and ensure that the Excise Department does not suffer any loss of revenue.
**…Otherwise, State Revenue Could Face a Negative Impact**
For now, despite the concessions offered by the department, it remains to be seen how many applications are received for these pending groups by April 4th and to what extent the situation improves. Furthermore, officials from the Excise Department believe that the 15 percent reduction in license fees will provide some relief to contractors and is expected to boost participation in the e-tendering process. The department is continuously reviewing the situation, and further relief may be considered if necessary, to ensure that all groups are allotted on time and the government’s revenue targets are met. Experts warn that if this situation persists for an extended period, it could have a negative impact on the state’s revenue. Consequently, it becomes imperative for the government to formulate a balanced policy that takes prevailing market conditions into account.
