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Delhi liquor policy likely to be extended again as new excise regime delayed

With a new excise policy still under formulation for over three years, the Delhi government may extend its existing liquor policy once again, officials told The Times of India.

The current policy, last extended for nine months in August 2025, is set to expire on March 31. Officials said that if it is not extended before mid-March, liquor supply in the capital could be disrupted. The excise department has moved a proposal to extend the policy till March 2027.

Also Read: Policy limbo leaves Delhi liquor sales on a roller coaster

“If approved, this will be the longest extension of the current policy,” one of the officials told TOI.

Industry flags uncertainty

Liquor industry representatives said the delay in notifying a new policy has created prolonged uncertainty in Delhi’s market.
“Our neighbours — UP, Haryana and Rajasthan — have announced their excise policies in a timely manner. Many states have long-term policies spanning two to four years to ensure business stability,” Vinod Giri, director general of the Brewers Association of India, told TOI. He added that Delhi must introduce a stable policy to ensure quality products, restore industry confidence, retain business in the capital and protect revenues.Policy history

The current regime has been in force since September 2022 after the 2021-22 excise policy drafted by the then AAP government was scrapped amid allegations of irregularities. Following a CBI probe and arrests of several AAP leaders, including then chief minister Arvind Kejriwal, the government reverted to the old policy.

The new policy, initially expected in late 2022, was delayed due to investigations into the previous regime, the 2024 Lok Sabha elections and the 2025 Delhi assembly polls. After coming to power in February 2025, the BJP government began drafting a fresh excise policy, but it is yet to be approved.

What extension would mean

If extended, wholesale (L-1, L-1F), retail (L-2), hotel, club and restaurant licences will be renewed under existing terms upon payment of applicable fees. Government-run retail outlets will also renew permits to continue operations.

“Once approval is granted, the excise department will issue circulars inviting licensees to submit fees for renewal,” an official told TOI.

Also Read: Delhi to modernise govt-run liquor stores for a sleeker shopping experience

Repeated extensions have led to periodic supply constraints, with several premium Indian and international brands often unavailable in the city, industry representatives said. They have also sought modernisation of the policy, pointing to neighbouring states where private retailers operate with wider product availability.

Giri said the existing policy, initially meant to be temporary, has been repeatedly extended while retaining structural flaws. “Delhi will suffer revenue loss and flight of business if the new policy is not announced soon,” he told TOI.

At present, retail liquor sales in Delhi are conducted through government-run outlets. While the current framework allows for private participation, only state-run corporations operate retail liquor stores.

Officials said the BJP government has prepared a draft policy aimed at modernising and expanding state-run vends by opening larger, better-stocked outlets in malls and shopping complexes. The draft, which awaits cabinet approval, proposes to continue with four government corporations operating liquor shops, with no provision for private participation. Multiple consultations have been held and the policy remains under consideration, officials told TOI.

(With inputs from TOI)

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