After political crisis, Sukhu govt in Himachal faces upfill task

TNR Exclusive: Auction of 2,100 vends appearing to be an uphill task

The Newz Radar

CHAMBA: The Sukhvinder Singh Sukhu government of Himachal Pradesh, already battling a political crisis amid rebellion by its six MLAs, is now facing a fresh challenge of achieving its targeted revenue from liquor sales.

Despite the target to increase the state’s revenue by introducing a new excise policy, the government’s aim to earn Rs 2,700 crore through the auction of 2,100 liquor vends appears to be a distant dream. In the initial phase of the auction for vends, the government could auction vends only in six of the total 12 districts in the state.

A closer examination of the auctions, however, reveals only meagre profits in select liquor units. Himachal’s largest district Kangra alongside Mandi, Bilaspur, Una and Chamba witnessed an unsuccessful first round of auctions, prompting the government to announce a second round. It is scheduled for March 9 and 10 in Kangra and Bilaspur, followed by Mandi, Chamba and Una on March 11.

The government aims to generate an additional revenue of Rs 200 crore compared to the previous excise policy of the 2023-24 financial year. The anticipated contribution of tourists to Himachal’s revenue remains pivotal. However, recent developments in Kashmir and last year’s natural calamities during the rainy season have dealt a blow to the state’s tourism industry, affecting liquor sales.

In light of these circumstances, liquor traders have exhibited lukewarm interest in aligning with the government’s new excise policy. Amidst these challenges, the duration and outcome of the auction process remain uncertain. The government’s ability to navigate these obstacles will shape the trajectory of Himachal’s liquor trade and its fiscal aspirations.