Bhopal: Madhya Pradesh will see the introduction of “Low Alcoholic Beverage Bars” from April 1, as part of the state’s new Excise Policy. This policy aims to regulate alcohol consumption by setting limits on alcohol content and restricting liquor sales in certain areas.
The new Low Alcoholic Beverage Bars will only serve beer, wine, and ready-to-drink alcoholic beverages, with a maximum alcohol content of 10 per cent V/V (Volume on Volume). Spirits will be strictly prohibited in these bars, according to a government release. Currently, Madhya Pradesh has 460 to 470 liquor-cum-beer bars, but with the introduction of these new bars, the number will increase significantly.
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Liquor sale ban in 19 locations, including holy cities
The new Excise Policy also includes a ban on liquor sales in 19 locations, including 17 holy cities. Among the holy cities affected are Ujjain, Omkareshwar, Maheshwar, Mandleshwar, Orchha, Maihar, Chitrakoot, Datia, Amarkantak, and Salkanpur. Starting April 1, 47 composite alcohol shops, which sell both Indian Made Foreign Liquor and country liquor, will shut down in these areas.
The government estimates that this move will result in a loss of Rs 450 crore in excise revenue. However, officials have clarified that the prohibition law is not in place in Madhya Pradesh, so there will be no penalty for carrying or consuming alcohol privately in these areas. A law similar to the Bihar Prohibition Act would be required to prevent individual consumption in these locations.
Changes in excise policy for next fiscal year
The new excise policy also includes a 20 per cent hike in liquor shop renewal fees. However, the Heritage Liquor and Wine Production Policy will remain unchanged, with heritage liquor manufacturers continuing to be exempt from Value Added Tax (VAT).
The state is also promoting the production of wine from fruits and honey grown in Madhya Pradesh, in line with the Grape Processing Policy. Wine production units will be allowed to operate retail outlets at their premises, and wine-tasting facilities will be open to tourists at wineries.
Foreign liquor bottling units will also be permitted to operate in Madhya Pradesh, with the ability to manufacture, store, export, import, and sell special liquors starting in the next fiscal year. An estimated 3,600 composite liquor shops in the state are expected to generate around Rs 15,200 crore in revenue this fiscal year.
Agency
Published: 17 Feb 2025, 08:24 am IST
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