Leh: Lieutenant Governor of Ladakh Vinai Kumar Saxena has approved a new Excise Policy for the Union Territory, introducing wide-ranging reforms aimed at curbing dependence on narcotic substances, improving regulation of the liquor trade, enhancing tourism and optimising excise revenue.
The policy seeks to provide consumers with a wider choice of low-alcohol-content beverages through authorised channels while ensuring transparency, accountability and effective regulation.
The move follows extensive consultations with civil society organisations, NGOs, religious bodies, public representatives and government officials. During these interactions, concerns were raised over increasing dependence on narcotic substances and psychotropic drugs, allegedly linked to the limited availability of authorised liquor outlets in Ladakh. Stakeholders, including representatives of the Ladakh Gompa Association and medical experts, suggested expanding the range of liquor available through authorised vends to help counter drug abuse and the circulation of smuggled and spurious liquor.
Subsequently, a committee was constituted to frame a revised excise policy after examining issues relating to public convenience, prevention of illicit trade, social impact, revenue generation, licensing procedures, digitisation and enforcement.
A major feature of the new policy is the liberalisation of the existing restrictive regime, which had resulted in limited availability of brands and outlets, creating what the administration described as an “artificial scarcity.” Officials said this often discouraged tourists and led many visitors to carry liquor from outside Ladakh, causing revenue losses to the Union Territory.
To optimise revenue, the annual fee for wholesale licences has been increased from ₹3.5 lakh to ₹5 lakh. The base price for retail liquor vends has also been revised, with the minimum bid fixed at ₹60 lakh in Leh Municipal wards and ₹30 lakh in other areas. The profit margin of retailers has been reduced from 12 per cent to 10 per cent.
The policy also introduces major licensing reforms by simplifying procedures. The number of documents required for obtaining an excise licence has been reduced from 16 to six, namely PAN card, Aadhaar card, incorporation certificate, blueprint of premises, GST/FSSAI/Tourism registration (whichever is available) and compliance with Rule 18 of the Excise Rules.
Under the revised framework, tourism registration will no longer be mandatory for hotels seeking liquor licences. GST registration alone will be sufficient, while establishments not registered under GST may furnish either FSSAI registration or tourism registration.
Highlighting the objectives of the revised policy, Vinai Kumar Saxena said it seeks to establish a balanced and pragmatic framework that addresses public concerns, strengthens regulatory oversight, promotes tourism and economic activity, prevents illegal trade and helps reduce dependence on narcotic substances through lawful and regulated channels.
He reiterated the administration’s commitment to transparency, accountability and public welfare while strengthening excise governance across Ladakh.
The policy also includes stringent enforcement and consumer protection measures. Retailers found selling liquor above the Maximum Retail Price (MRP) will face strict penalties, including cancellation of licences and forfeiture of Earnest Money Deposits (EMD).
To curb excise duty evasion and improve traceability, manufacturers and importers will be required to affix Excise Department-approved security holograms on liquor products.
Addressing environmental concerns, the policy prohibits the sale of liquor in plastic bottles. Liquor will only be permitted in approved glass bottles, PET bottles and tin cans.
In a move aimed at generating employment, the policy allows licence holders to employ any person above 21 years of age in liquor-related business activities.
The policy further stipulates that retail liquor vends may only be established after ensuring compliance with prescribed norms, including maintaining a minimum distance of 100 metres from religious places, educational institutions, hospitals and public parks, in accordance with Government of India guidelines.
The administration said the new policy seeks to balance public welfare, economic interests, tourism development and regulatory control while ensuring a transparent and accountable excise system in Ladakh.
