The proposals under consideration include issuing of new licenses, specially for molasses-based production, as well as, removing the generic capacity restriction on each licence.
These two proposals, according to ministry sources, are expected to prevent the illegal trade in liquor licences that is currently flourishing in the country, as well as, allow companies to adjust production capacity to market demand. These proposals have been mooted in place of complete delicensing of the alcohol industry, which has been a long-standing demand of the domestic liquor industry.
N Mohanty, secretary, industrial policy and promotion, and FIPB chairman, recently stated at a press conference that alcohol delicensing was not on the government agenda:
