With alcohol prices rising at shops, bars, and pubs, and bar closing times reduced from 2 AM to midnight for those with a base license, the new excise policy in Haryana may dampen the spirits of many NCR residents who used to flock to Gurgaon for late-night partying.
According to the 2024-25 excise policy, bars in Gurgaon with a base license can only operate until midnight. To stay open until 2 AM, they must pay an additional INR 20 lakh, and INR 5 lakh for each hour beyond that. This new policy has shocked many in the business community, who had praised last year’s policy as “highly progressive.” Previously, licensed bars could remain open until 2 AM with a base license, with an option to extend until 8 AM for an additional annual fee of INR 20 lakh. Before 2023, Gurgaon bars could stay open until 1 AM, with a one-hour extension available for an additional annual fee of INR 10 lakh, and further extensions until 6 AM for an extra fee of INR 20 lakh.
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Reports indicate that beer prices are expected to increase by 20 percent for a case containing 12 or 24 bottles. The cost of Indian Made Foreign Liquor (IMFL) is anticipated to rise by 15 percent per bottle, while the prices for imported foreign liquor are projected to increase by 12-15 percent per bottle.
Restaurateurs warn that the increased license fees will be difficult for businesses to manage and will negatively impact consumers and Gurgaon’s nightlife.
“Bars will have to raise prices to cover operating expenses. It’s a significant setback, as Gurgaon’s nightlife was steadily gaining a strong reputation. Over the years, the city had become a late-night party hub with bars operating until 2 AM. With the new policy, I don’t expect the NCR crowd to come to Gurgaon anymore,” says restaurateur Sahil Sambhi.
Restaurateur Rahul Singh adds, “In Gurgaon, a large part of the population works in the corporate sector. Due to their long working hours, many residents unwind at restaurants and cafes late at night. The reduction in liquor-serving hours, along with the exorbitant fees for staying open past midnight, is not commercially feasible for most restaurants.”
“Local markets in Gurgaon are renowned for being home to numerous tiny eateries, many of which flourish when given a base licence that allows them to stay open until two in the morning. The late-night business crowd frequently congregates in these bars. These establishments will have to reduce their hours because they are unable to afford the extra costs associated with remaining open until 2 AM. As a result, consumers will have fewer options to select from,” believes restaurateur Vikrant Batra.
Restaurateur Umang Tiwari adds, “Most BYOB outlets are already operating like restaurants, and small bars and restaurants are suffering losses. The new excise policy and increased costs will make it very difficult for them to survive.” Restaurateur Varun Khera notes that “the new excise policy means every restaurant and bar will have to pay a high price for each operational hour, raising overall operating costs and impacting consumers with higher prices.”
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