Delhi recorded a nearly 17% increase in excise revenue during the first two months of the current financial year, a rise officials attributed to improved availability of liquor brands and greater stability in the retail market after the city government extended the existing excise policy for another year.
According to official figures shared by government officials on Thursday, the excise department collected ₹1,038 crore in April and May combined, compared with ₹885 crore during the same period last year. The collections were also higher than the ₹922 crore recorded during April-May 2024, indicating a steady increase in excise receipts over the past two years, an official aware of the figures said, requesting anonymity.
Officials said the rise was largely driven by reduced uncertainty among licence holders and suppliers following the government’s decision to extend the current policy for an entire year instead of issuing short-term extensions.
“The government used to extend the policy for three months until last year. However, this time the government extended the policy for a year, creating a sense of security,” he added.
The extensions meant that Delhi continued operating under the 2020-21 excise policy, which has been repeatedly extended since the withdrawal of the now-scrapped 2021-22 policy. The policy had earlier been extended several times under the previous Aam Aadmi Party (AAP) government and has now been extended thrice under the current Bharatiya Janata Party (BJP) administration.
The latest extension ensured continuity in liquor supply as the previous extension was due to expire on March 31.
Industry representatives said improved product availability was another key factor behind the rise in collections.
Vinod Giri from the Brewers Association of India, said, “Last year, availability of renowned brands was around 24 per cent, which has now increased to 54 per cent. Renowned brands are more equipped to meet the demand and the department has acted against practices that promoted certain brands, which could be the reason for the spike,” he said.
The increase comes at a time when the Delhi government is looking to strengthen its revenue base while simultaneously working on a new excise policy. At present, liquor retail in the Capital is entirely controlled by government-run outlets.
Delhi currently has more than 700 liquor vends operated by four government agencies — the Delhi State Industrial and Infrastructure Development Corporation, Delhi Tourism and Transportation Development Corporation, Delhi State Civil Supplies Corporation and Delhi Consumers’ Cooperative Wholesale Store.
The Capital has been awaiting a new excise policy for several years, with delays caused by corruption investigations, the 2024 Lok Sabha elections and the 2025 Delhi assembly elections.
After assuming office in February 2025, the BJP government constituted a committee to frame a new and “foolproof” excise policy focused on regulatory clarity and consumer convenience. The panel has held consultations with manufacturers, wholesalers and retailers and reviewed policies followed in other states, though officials indicated that the new framework is still some distance away.