The amendment is being made for the purpose of monitoring production and dispatch of Extra Neutral Alcohol/Rectified Spirit (RS).
The move to install flow meters in the production line will help streamline the production and stem any leakage from the distilleries so that the entire production is captured, an official spokesperson said.
At present there are 17 distilleries and 22 bottling plants across the state.
All the distillers are producing Extra Neutral Alcohol (ENA), which is the basic raw material for the manufacture of IMFL (Indian-made foreign liquor) and country liquor, he said.
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"The cabinet agreed that it was in the interest of the state that the entire production of ENA is captured so that there is no leakage of ENA/RS/DNS (De-natured Spirit) from the manufacturing units," he said.
The leakage of ENA can have very serious repercussions both in terms of revenue and health of the consumers.
The cabinet also approved an amendment to the Punjab Excise Bonded Ware Rules, 1957, to facilitate the licensee if he, for any reason, decides to shift his licensed premises to some other place, he said.
The amended rules envisage that if, during the period of Letter of Intent, the applicant desires to shift the location of his proposed plant to some other district/place, he may be allowed to shift with prior approval of Financial Commissioner Taxation, provided that he will fulfil all the conditions of LOI, he said.
However, LOI fee once paid for a particular period will not be charged again in such cases, he said.
But, in case extension is sought during the period of LOI, then the applicant will be required to pay the requisite extension fee.