Uttar Pradesh government approves Excise Policy 2025-26, aims revenue target of Rs 55,000

The Uttar Pradesh government has approved the new Excise Policy for the financial year 2025-26. The decision was confirmed by the state’s Excise Minister, Nitin Agarwal, who outlined key changes under the policy.

One of the major reforms includes the introduction of an e-lottery system for granting liquor shop licenses. The new policy stipulates that renewal of existing licenses will no longer be permitted, and licenses will be allocated through a transparent online lottery process.

Additionally, the policy limits individuals to holding no more than two liquor licenses within the state.

Minister Agarwal also mentioned that for the first time, foreign liquor and beer will be allowed to operate together in composite stores, providing a new opportunity for businesses.

With the new policy in place, the government has set a revenue target of Rs 55,000 crore from excise collections, marking an increase of Rs 4,000 crore compared to the previous financial year.

Nitin Agarwal said, “Earlier, grain-based liquor used to come in glass bottles, but this time, both grades of country liquor, whether grain-based or molasses-based, will replace glass with tetrapack. Tetrapack is safer, and the possibility of adulteration is reduced.”

“If any millers ask for a permit for ethanol blending, then for the same, we are introducing a processing fee of Rs 7,500 this time,” he further added.

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