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With low security fee, Haryana uncorks new excise policy

With low security fee, Haryana uncorks new excise policy

Time of India26-05-2025

Gurgaon: The excise and taxation department has unveiled significant amendments to its Excise Policy 2025-27, making it more accessible and financially viable for potential investors.
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The revised policy, effective immediately, substantially reduces entry barriers and introduces flexible payment options, marking a shift in the state's approach to liquor vend allocation.
The department's reform package centres on easing the financial prerequisites for bidders. In a notable change, the initial security deposit requirement has been reduced from 3% to 2% of the bid amount, while the total security deposit has been trimmed from 15% to 11% of the zone's licence fee.
This reduction, officials said, was aimed at significantly easing the upfront financial burden on prospective vendors.
Further streamlining operations, bidders can now start their liquor quota lifting after depositing just 5% of the bid amount as security, down from the previous 7%. Full lifting rights will be granted upon completion of the 11% security deposit, enabling quicker business commencement.
The payment structure has been reimagined as well to enhance financial flexibility, with 91% of the licence fee now payable through monthly installments.
The remaining 9% will be adjusted from the deposited security during the final two months of the policy year, offering better cash flow management for operators.
According to excise officials, these modifications are designed to catalyse broader market participation. "The reduced financial requirements and more flexible payment terms will likely attract a diverse range of bidders, potentially including smaller enterprises that previously found entry barriers prohibitive," said a senior official.
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The policy revisions, the official said, are expected to create a more dynamic and competitive market environment. "Allowing quota lifting with a lower initial security deposit means licencees can begin their operations sooner, potentially reducing idle time and maximising revenue generation from the start of the policy year," the official added.
In response to these changes, the e-tendering schedule has been updated as well.
Gurgaon (West) will open tenders on May 26, with bid evaluation scheduled for May 27. For Gurgaon (East), tenders will open on May 30, with evaluation set for May 31.
Deputy excise and taxation commissioner (East) Amit Bhatia emphasised the importance of thorough policy review. "All prospective bidders are strongly encouraged to review the complete amended Excise Policy 2025-27, which is available on the official website at www.haryanatax.gov.in," he added.
"By reducing financial barriers and introducing more flexible operational terms, the policy revisions are poised to attract more participants and foster a more robust and competitive liquor retail sector in the state," he said.

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