Leh: Lieutenant Governor Vinai Kumar Saxena has accorded approval to the New Excise Policy of Ladakh, which primarily aims at curbing the growing dependence on narcotics and drugs and giving people a wider choice of low alcoholic content liquor in the region.
According to an official statement, the policy seeks to optimise excise revenue in a transparent, accountable and regulated manner. It also marks a significant reform in the Union Territory’s excise regime, introducing a liberalised, transparent and technology-enabled regulatory framework aimed at balancing public convenience, tourism promotion, revenue optimisation and effective regulation of the liquor trade.
The new policy comes after extensive consultations with civil society organisations, NGOs, religious groups, public representatives and government officials. One of the key concerns raised during these discussions was the increasing dependence on narcotic substances and psychotropic drugs, particularly due to the unavailability of hard liquor in Ladakh, prompting some individuals to resort to illegal narcotics and smuggled or spurious liquor.
Representatives of the Ladakh Gompa Association and medical experts had suggested expanding the liquor range at authorised vends to help tackle the growing menace of drug abuse. Taking note of these suggestions, LG Saxena had assured a review of the existing excise policy.
Subsequently, a committee of officers was constituted to draft a revised policy. It examined issues related to public convenience, prevention of illicit liquor trade, its societal impact, excise revenue generation, transparency in allotment of vends, licensing procedures, digitisation and enforcement mechanisms.
A key feature of the new policy is the liberalisation of the existing restrictive regime, which had resulted in limited availability of brands and outlets, creating what the administration described as an “artificial scarcity” that often deterred tourists from visiting Ladakh. Many tourists reportedly carried liquor from outside the region, leading to revenue loss for the Union Territory.
Key reforms include permitting the sale of hard liquor, including Foreign Liquor and Indian Made Foreign Liquor (IMFL), through retail vends. Earlier, only beer, wine and Ready-to-Drink (RTD) beverages could be sold through retail outlets. Excise duty rates on liquor, beer and wine have also been rationalised.
For the first time, guest houses and homestays will be allowed to obtain licences to sell liquor. Earlier, only hotels could serve liquor. Beer bars with microbreweries will also be permitted.
To improve accessibility, 20 liquor vends will be opened through e-auction. Previously, only two liquor vends were operational in Ladakh.
Liquor will now also be available in Nubra, Changthang, Sham and Zanskar, whereas earlier it was available only in Leh city.
The policy allows liquor consumption within hotel premises, including guest rooms. Earlier, consumption was restricted to bars. The number of documents required for obtaining an excise licence has also been reduced from 16 to six.
The requirement for obtaining an opinion from the district administration before grant of a licence has been removed. Permission has also been granted to serve liquor at private events, banquet halls and party halls on payment of the prescribed fee.
Manufacturers will now be permitted to undertake wholesale distribution of liquor, a move aimed at improving supply chains and increasing the availability of quality brands.
A simplified duty structure has been introduced with a single duty framework at wholesale and retail levels. A uniform excise duty of Rs 500 per litre of pure alcohol has been prescribed across all IMFL brands.
The annual fee for a wholesale licence has been increased from Rs 3.5 lakh to Rs 5 lakh. The base price for retail vends has been fixed at Rs 60 lakh in Leh municipal wards and Rs 30 lakh in other areas. Retailers’ profit margins have been reduced from 12 per cent to 10 per cent.
The new policy further streamlines licensing norms. Tourism registration, which was earlier mandatory for hotels seeking liquor licences, will no longer be compulsory if the establishment has GST registration. Hotels not registered under GST will have to provide FSSAI or tourism registration.
LG Saxena said the revised policy seeks to establish a balanced framework that addresses public concerns, strengthens regulation, facilitates tourism and economic activity, prevents illegal trade and reduces dependence on narcotic substances through lawful and regulated channels.
He reiterated the administration’s commitment to transparency, accountability and public welfare while implementing the policy.
The policy also includes stricter enforcement and consumer protection measures. Retailers found selling liquor above the Maximum Retail Price (MRP) could face licence cancellation and forfeiture of earnest money deposits.
Manufacturers and importers will be required to affix security holograms approved by the Excise Department on liquor products to prevent duty evasion and improve traceability.
The policy prohibits the sale of liquor in plastic bottles and mandates that liquor be sold only in approved glass bottles, PET bottles and tin cans.
Licensees may employ any person above 21 years of age in the liquor business, a provision expected to create additional employment opportunities.
The policy also mandates that retail liquor vends maintain a minimum distance of 100 metres from religious places, educational institutions, hospitals and public parks, in accordance with Government of India guidelines. (ANI)