Reform Hiccup: Delhi Govt May Extend Old Liquor Policy Again

New Delhi: With a new excise policy still in the making for over three years, Delhi govt may extend its existing liquor policy yet again. Last extended for nine months in Aug 2025, it is set to expire this March 31. If it is not extended before mid-March, liquor supply in the capital could be disrupted. Hence, the excise department has moved a proposal to govt to extend it till March 2027, officials told TOI. "If approved, this will be the longest extension of the current policy," one of the officials said.
Liquor industry representatives said the delay in notification of a new policy has created uncertainty in Delhi's market. "Our neighbours — UP, Haryana and Rajasthan — have announced their excise policies in a timely manner. Many states have long-term policies spanning two to four years to ensure business stability," said Vinod Giri, director general of Brewers Association of India, adding that Delhi govt must introduce a new, stable policy to ensure quality products, restore industry confidence, retain business in the capital and protect revenues.The current policy has been in force in Delhi since Sept 2022 after a 2021-22 regime drafted by the then AAP govt was scrapped amid allegations of irregularities. The new policy, initially expected in late 2022, has been delayed due to investigations into the previous one, 2024 Lok Sabha elections and Delhi assembly polls in 2025. Following a CBI probe and arrests of several AAP members, including then chief minister Arvind Kejriwal, govt reverted to the old policy.Soon after it came to office in Feb 2025, BJP govt started the process of drafting the new one, but it is yet to see the light of day.If the existing policy is extended, wholesale (L-1, L-1F), retail (L-2), hotel, club and restaurant licences will be renewed under existing terms upon payment of applicable fees. Govt-run retail outlets will also renew permits to continue operations. "Once approval is granted, the excise department will issue circulars inviting licensees to submit fees for renewal," the official said.Repeated extensions of the policy have led to periodic supply constraints, with several premium Indian and international brands often unavailable on the shelves in the city. Industry representatives have sought modernisation of the policy, citing neighbouring states where private retailers operate with broader product availability.The existing policy was meant to be a temporary arrangement but had been repeatedly extended, retaining flaws such as pushing of some brands, cheap imports and poor retail experience, Giri said. "Delhi will suffer revenue loss and flight of business if the new policy is not announced soon," he added.At present, retail liquor sales in Delhi are conducted through govt-run outlets. Although the current policy allows for private participation, it was decided that only govt-run corporations would run the retail liquor stores.The officials said BJP govt has prepared a draft excise policy, which seeks to modernise and expand state-run vends, by opening larger, better-stocked stores in malls and shopping complexes. Under the draft, which awaits cabinet approval, the existing structure of four govt corporations operating liquor shops will continue, with no scope for private participation. Multiple consultations have been held, and the policy remains in the making, according to the officials.