Madhya Pradesh: Dhar opens liquor contracts for small contractors after shop allotment gets meek response

Madhya Pradesh: Dhar opens liquor contracts for small contractors after shop allotment gets meek response

As competition increases, small contractors will be included in the tender

FP News ServiceUpdated: Tuesday, March 14, 2023, 03:59 PM IST
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Dhar (Madhya Pradesh): The excise department in Dhar district has begun the process of allocating liquor shops for the fiscal year 2023-24.

However, no contractor has so far expressed interest in the allotment process for the first and second phases of the shops, and as a result, the contracts for the shops have not been completed.

As a result, the district committee has decided to allow small groups of contractors to participate in the tender process.

Recently, the new liquor policy was approved by the state government pertaining to liquor shops. It was also decided to increase the distance of shops from schools, and temples along with closing the “Ahatas” (premises near liquor shops) near the shops.

Impact of the new policy begins

With the closure of 63 “Ahatas” in the district and the change of the location of three shops, it starts putting an impact on the district. Following the orders containing these new rules, the liquor contractors are also showing little interest in the allotment process.

Only current operators were offered renewal with a 10% increase in the first phase of shop allotment, but the group including any shop operator did not participate in the process.

After that, the lottery system was implemented, but the department did not benefit from it.

Department anticipates benefit of competition

Giving information, assistant excise commissioner Vikram Deep Singh Sangar said that earlier 10 groups were formed pertaining to liquor shops in the district, in which a total of 88 liquor shops were allotted.

However, due to the District Committee's decision and the excise commissioner's approval, the big groups have been divided into 24 small groups due to renewal and non-execution by lottery.

This fiscal year, the excise department is expected to earn Rs 377 crore from these shops. On the other hand, excise received Rs 358 crore from liquor shops last year.

According to department officials, the formation of 24 groups will allow smaller contractors to participate in the tender process instead of large contractors, increasing competition for taking over the shops. In addition, the government will receive more revenue.

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