 "UP pegs excise revenue target at Rs 12,000 cr")
In the current fiscal, the state is eyeing revenue of Rs 10,070 crore against excise revenue of Rs 8,139 crore during 2011-12.
Most importantly, the Akhilesh Yadav government is set to retain the existing Excise Policy, announced for two years viz. 2011-13 during the previous Mayawati regime, with, at best, minor tweaking.
This would benefit the Ponty Chadha Group, which has been enjoying virtual monopoly over wholesale liquor trade in UP along with a significant stake in the retail segment.
While, there has been no official word on this matter as the Vidhan Sabha session is underway, sources have confirmed that the excise policy would be retained.
On the sidelines of the post (state) Budget news conference held here recently, chief minister Akhilesh Yadav had told Business Standard that the state excise policy would be announced soon.
“It would be announced soon…most probably by the end of this month. We have already increased the excise duty target by 20%,” he replied without revealing the contours of the policy draft.
“There is hardly anytime left for implementing a new policy. Even the lottery system would require two months’ time,” a Lucknow-based prominent liquor traders’ leader said on anonymity.
The liquor retailers had also favoured that their licenses be renewed, while they wanted that the government conducted lottery for awarding wholesale liquor licenses. The government is set to maintain status quo as the existing policy has led to almost 20% increase in excise revenue in past years.
The consolidated annual UP liquor business, spanning foreign and country made liquor, is estimated at Rs 14,000 crore. Barring some districts like Lucknow, Allahabad and Varanasi, which are managed by Deep Group, the Ponty Chadha Group ruled the roost in other regions.
There is rampant trade of illicit liquor and smuggling in UP, that robs the state excise revenue by 20% annually. This is also being plugged by the state.
There are around 17,000 retail liquor shops in UP, of which 40% were controlled by late Ponty Chadha Group, which also exclusive took the delivery of liquor from 54 odd distilleries in the state for retailing.
Since, the wholesale contract of Ponty Chadha is due to expire on March 31, 2013, and owing to the Group’s proximity with the previous regime, it was believed that the incumbent dispensation could revert to the erstwhile lottery system and selection of several wholesale suppliers.
Chadha’s political clout could be gauged from the fact that during the previous Mayawati regime, a special Meerut zone was created comprising adjoining districts wherein Ponty Chadha Group was awarded not only wholesale, but retail contract also.
Liquor baron Ponty Chadha and his younger brother Harjeet were killed in a shootout at a Delhi farmhouse in November 2012 and the case is under investigation.