The Hindu : Karnataka / Bangalore News : Permit to open 1,000 liquor shops, 500 bars

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Friday, Jul 18, 2008
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Karnataka

Karnataka - Bangalore

Permit to open 1,000 liquor shops, 500 bars

T.S. Ranganna

Permit for CL-2 licences to move
to rural areas
Licence fee for new wineries down to Rs. 5,000

Bangalore: Under the premise that consumers in rural areas have to trek long distances for liquor, particularly after the arrack ban — which incidentally was effected in the last budget — the State Government has decided to issue permits for more liquor shops, bars and restaurants.

Chief Minister B.S. Yeddyurappa announced that 1,000 additional liquor shops under CL-2 licence and 500 more bars and restaurants under CL-9 licence would be permitted this fiscal.

Mr. Yeddyurappa said that the grant of licence would be strictly within the population norms prescribed by Excise Rules. The Government, he said, would consider opening retail liquor shops through a public sector undertaking.

Transfer

In another move, he also favoured those having CL-2 licences, who were demanding permission to shift their business to other places. He said the Government would permit transfer of CL-2 licences from urban areas to rural areas and from one rural area to another within a district, to facilitate opening of shops in unserved areas.

He said that there were several complaints from liquor consumers that higher prices, than the maximum retail price (MRP) prescribed by the Excise Commissioner, were being charged. The Excise Act would be amended to provide for cancellation of licence in proven cases of violation of the MRP, he said.

Recalling his decision to abolish sale of arrack, he said some unscrupulous elements were indulging in production of illicit liquor. He said that the enforcement machinery in the Excise and Police departments would be strengthened to restrict such illegal activities.

Wine policy

On the wine policy, Mr. Yeddyurappa said the licence fee for establishing a winery has been reduced from Rs. 50,000 to Rs. 5,000, and the licence fee for setting up a tavern has been fixed at a nominal Rs. 1,000. He hoped that combined with the liberalised taxation on wines and promotional efforts of the State Wine Board, the wine industry in the State would take firm root, to benefit thousands of grape growers in the State.

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