The Delhi government is preparing a sweeping overhaul of its excise policy in a bid to plug revenue leakages, improve consumer experience and address long-standing social concerns linked to liquor sales.
A high-level committee headed by Public Works Department minister Parvesh Verma, with industries minister Manjinder Singh Sirsa, home minister Ashish Sood and senior excise officials as members, has begun drafting proposals. The panel is studying models in Haryana and Uttar Pradesh to align Delhi’s liquor pricing with neighbouring states. At present, sharp price disparities encourage thousands of customers to cross borders, draining Delhi’s excise revenues. Officials say narrowing this gap could bring a significant boost to the treasury.
Another core issue is the chronic shortage of premium Indian and international liquor brands in the capital. Retailers and consumers alike have complained of empty shelves and limited availability. The government is considering reforms to ensure steady supplies of high-demand products, positioning Delhi as a more competitive market.
The draft also proposes relocating liquor vends from densely populated residential neighbourhoods to commercial zones. Officials argue that moving shops away from homes will reduce community friction and improve public safety. Parallel to this, the government wants outlets to undergo a facelift. Plans call for cleaner, better-lit stores with organised layouts, replacing the perception of liquor vends as unsafe or unwelcoming.
Currently, four state-run corporations manage all of Delhi’s retail outlets, each earning a flat margin of ₹50 per bottle of hard liquor. While the uniform system ensures stability, officials say it discourages innovation and fails to incentivise better customer service.
The draft excise policy, expected before March 2026, will replace the stop-gap regime extended after the controversial rollback of the 2021-22 framework. Chief Minister Rekha Gupta has directed that the new system balance revenue needs with public health and community safety.
