Big news for state people. The Madhya Pradesh government has made a significant move to ban liquor sales in 19 key cities and towns across the state. Starting April 1, these areas, which hold religious significance, will see a complete halt in alcohol sales. However, the government doesn’t expect this to heavily impact its finances, estimating only a 3 percent annual drop in revenue.
The state has identified several sacred locations where alcohol will be prohibited, including Ujjain, Omkareshwar, Maheshwar, Mandleshwar, Orchha, Maihar, Chitrakoot, Datia, Panna, Mandla, Multai, Mandsaur, Amarkantak, Salkanpur, Barman Kala, Linga, Barman Khurd, Kundalpur, and Bandakpur.
According to senior officials, the total revenue from liquor shops is projected to be around Rs 15,000 crore for the current financial year. They believe that the closure of liquor sales in these specific areas will result in no more than a 2 percent revenue loss. An anonymous official from the Excise Department mentioned to Business Standard that they don’t anticipate any major financial hit, as the income lost from the closed shops will likely be offset by revenue from other locations.
The official added that this time around, a tender cum auction method will be used for liquor contracts. Interested parties will need to submit a tender and will secure the contract only after offering a bid above a set amount. Additionally, it will be mandatory for all shops to have point of sale machines to ensure accurate sales tracking and effective monitoring, with trials already underway at several locations.
How will the revenue be restored?
The sale of alcohol is a significant revenue stream for both central and state governments. Consequently, the government faces potential revenue losses due to the closure of liquor shops in cities and towns designated as holy. However, a new strategy has been developed to address this issue. This approach involves compensating the revenue lost from districts where shops are closed by reallocating funds from other districts. To facilitate this, the renewal fees for existing liquor shops will be increased, and the starting price for new shops will see a 20 percent hike.
Under the new excise policy, alcohol sales are banned in sacred areas, but for the first time, the state will allow the establishment of ‘low alcohol beverage bars.’ These bars will serve drinks like beer and wine, which contain less than 10 percent alcohol, as part of the initiative to boost revenue. The licensing fees for these mini bars will be set lower than those for regular bars.
The ban on liquor sales at 19 locations in the state will impact 47 composite liquor shops that sell both Indian and foreign brands. With the Simhastha Kumbh scheduled to take place in Ujjain in 2028, this liquor ban announcement is seen as a crucial development.
The city of Simhasth Kumbh will be established
Sources indicate that inspired by the recent Maha Kumbh held in Prayagraj, Uttar Pradesh, the Madhya Pradesh government is planning to create a temporary mega city along the banks of the Kshipra river. This city, designed for devotees, will offer a wide range of facilities. Notably, Ujjain is also the home district of the state’s Chief Minister, Mohan Yadav.
The state government has given the green light for projects totaling around Rs 5,955 crore to get ready for Simhastha-2028. The fair area covers roughly 3,360 hectares, and they’re planning to set up permanent infrastructure like roads, water supply, electricity, and gardens. They’re expecting around 15 crore devotees to show up for Simhastha. The Chief Minister mentioned that the state will invite companies and startups that helped with the Prayagraj Mahakumbh to Ujjain for a conference.
As part of the government’s strategy, Ujjain and Indore are set to become key hubs for Simhastha. Sources say that since the launch of ‘Mahakal Lok’ a few years back, the number of tourists and devotees in Ujjain has skyrocketed fivefold. Previously, about 1 crore devotees visited each year, but now that number has jumped to 5 crore annually.