Delhi may earn nearly Rs 10,000 cr with new Excise Policy
New Delhi: Delhi's new Excise Policy is set to take up excise revenue figures to ten thousand crore, the Delhi government announced on Friday.
The government has already earned around Rs 5,300 crore in the initial rounds where licenses in 20 zones were given out. A zone-wise revenue of around Rs 265 crore is further expected to be received from the bidding of the remaining 12 zones. Approximately Rs 8,800 crore is expected to be earned from the bidding process of all 32 zones.
The new Excise Policy 2021-22 aims to minimise corruption and provide fair competition in the liquor trade.
After including revenues from country liquor, licensing, and import duties, the revenue estimates will shoot up to Rs 10,000 crore. While, under the previous excise regime, a total of Rs 6,358 crore were collected in the fiscal year 2019-2020 that included collection of excise from Indian and foreign liquor, VAT collected from wholesale and retail sales, HCR excise, and retail licensing fees.
Under the new policy, in addition to the Rs 8,800 crore that are estimated to be earned from the auctions, the additional projected revenue after collecting Excise, VAT, Import Fees, CSDN, HCR Licenses, Wholesale Licenses, and HCR VAT will be approximately Rs 650 crore. Taking the total projected revenue close to Rs 9,500 crore.
The Policy offers a tender process that forbids a bidder from bidding in more than two zones, which will bring in more players into the market, thus preventing instances of monopolisation, officials have said.
Another turnaround that the new policy offers is that in the previous excise policy regime, the yearly growth rates in revenue were limited to 5 per cent to 7 per cent but under the new policy, a growth of around 35 per cent is expected and is well on track to be achieved, sources aware of the details said.
"A zone-wise revenue of around Rs 265 crore is further expected to be received from the bidding of all the zones, which will total up to be around 8,800 crores in revenue after the entire bidding process is completed. It is important to note that the reserve bidding price was set at Rs. 221 crores and the tenders were awarded at an average premium of 20 per cent with the average bid price being Rs. 265 crores. The highest bid was auctioned for the New Delhi zone at a 45 per cent premium of Rs. 315 crores," the Delhi government said in a statement.
