Maharashtra to End 50-Year Ban on New Wine Shop Licences in a Major Revenue Push
Maharashtra plans to lift a 50-year ban on new wine shop licences to boost state revenue and fund welfare schemes.
It is advisable to have alcohol/liquor drinking license in Maharashtra. You can apply online for alcohol/liquor drinking liquor license in Maharashtra here : Click Here to Apply Now
In a significant policy shift aimed at boosting state revenue, the Maharashtra government is preparing to lift a ban that has been in place for nearly five decades on the issuance of new wine shop licences. According to a recent report by Loksatta, the government is planning to grant 328 new retail liquor licences based on recommendations from a newly established committee.
The move marks a turning point in the state’s excise policy, as the existing ban dates back to 1974 when public protests led to a complete freeze on expanding the number of liquor outlets. If this proposal is implemented, it will mark the first major change in Maharashtra’s retail alcohol licensing policy in 50 years.
Revenue-Driven Reform
This decision comes as part of the government’s broader financial strategy to increase income through the state’s Excise Department, which currently contributes approximately ₹43,000 crore to Maharashtra’s annual revenue — making it the fourth-largest source of state income.
With new welfare programs such as the Mukhyamantri Majhi Ladki Bahin scheme requiring considerable financial resources, the government is actively seeking alternative streams of revenue. The implementation of this new liquor licence policy is expected to generate an additional ₹14,000 crore per year, according to Loksatta.
New Licensing Model
Under the revised guidelines, these new licences will be offered on lease. This is a significant shift from the current scenario, where obtaining an old licence can cost as much as ₹10 crore in the open market. In contrast, the newly issued licences will require a non-refundable deposit of ₹1 crore. Additionally, the government expects to earn roughly ₹35 crore annually through associated licensing fees.
This expansion will result in a 19% increase in the number of retail liquor shops across the state. Currently, Maharashtra has 1,713 licensed liquor outlets, a figure that has remained unchanged since the 1970s.
Controversy and Criticism
However, the decision has not come without backlash. The committee responsible for suggesting these changes is chaired by Deputy Chief Minister and Excise Minister Ajit Pawar. This has raised eyebrows, as critics have pointed out that some individuals close to Pawar allegedly have business interests in the liquor sector. In particular, a large alcohol production unit in Baramati — believed to have links to his associates — has become a focal point of public debate and allegations of conflict of interest.
A Policy with Historical Resistance
This isn’t the first time the state has tried to ease restrictions on liquor licences. A previous attempt was made to increase the number of licences, but the plan was abandoned due to strong opposition from influential socialist leaders such as N.D. Patil and Mrinal Gore.
With the new policy on the horizon, the state government now faces the dual challenge of navigating public sentiment and addressing concerns of transparency — all while attempting to boost its coffers in the face of increasing welfare demands.
Conclusion
Maharashtra’s move to lift a long-standing freeze on new wine shop licences could be a game-changer for the state’s fiscal health. While the potential for increased revenue is significant, the government will have to tread carefully to address ethical concerns and public resistance. As the proposal moves forward, it remains to be seen whether the financial gains will outweigh the political and social costs.
How to get drinking liquor license in Maharashtra: Click Here to Apply Now
