New Delhi: Delhi’s Government’s revenue is ready to develop exponentially, all thanks to his new excise policy through which liquor retail licenses in 32 zones have been auctioned since Thursday.
The initial offer of 20 zones has brought Rs 5,300 Crore in excise income and around Rs 8,800 Crore is expected to be obtained in the overall bidding process.
The Delhi government has collected Rs 6,358 Crore in the financial book in 2019-20 under the previous regime by collecting excise in Indian and foreign liquor, VAT from wholesale and retail sales, HCR and retail licensing costs.
With new policies and demarcation of zones for offers, the number will reach around this fiscal 9,500 crore RS.
According to new policies, the priority of the Delhi government is to promote consumer choices and the availability of popular brands and niches.
It also aims to curb bootleging and ensure that there is an adequate advanced spread of retail throughout Delhi, so there are no areas that are not sucked and underlayed.
To ensure this, a new license – L-7Z – will be allocated to the highest bidder for a zone.
272 wards in 68 assembly constituencies are divided into 30 zones.
There will be 9-10 environments in each zone and a maximum of 27 retail fines (on average three) in each ward.
Reserve prices set at RS 221 Crore and tenders are given at a 20% premium with an average bid price to Rs 265 Crore.
The highest bid was auctioned for the new Delhi zone with a 45% premium for Rs 315 Crore.
The government has earned around Rs 5,300 Crore in the early round where the license in 20 zones is given.
Zone-wise income averages around Rs 265 Crore.
If the same average income is received from the remaining 12 zones, around RS 8,800 Crore will be obtained.
Apart from this, income is obtained from auction, excise, VAT, import costs, CSDN, HCR license, wholesale license and HCR VAT will be around RS 650 Crore.
This will take the total projected income approaching Rs 9,500 Crore, the source said.
Excise policy 2021-22 is intended to minimize corruption and provide fair competition in the trade of liquor.
The tender process prohibits applicants from offers in more than two zones.
The government believes this will bring more players to the market and prevent monopoly.
Under the previous excise regime, the annual income growth rate is 5% to 7%, but under a new policy of growth of around 35% is expected, said the source.