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Guwahati: In a significant policy overhaul, the Assam government has introduced a new system for the allocation of wine shop licenses. Under this new regime, licenses will be awarded based on a competitive bidding process where only the highest bidder secures the license.
The earlier system involved applicants submitting their requests for licenses, which were then processed by the excise department against a predetermined deposit. This method, however, came under scrutiny due to accusations of favoritism and corrupt practices, including instances of licenses being granted in exchange for substantial unofficial payments.
In an effort to promote transparency and enhance state revenue, the new system requires interested parties to pay an entry fee of Rs 1 lakh to participate in the bidding process. The government plans to issue 262 new wine shop licenses across various locations in the state. The applicant who offers the highest bid for a particular location will be awarded the license, a move expected to significantly increase the government's earnings compared to the previous method.
As of now, there are 2,571 IMFL wine shops and bars, along with 781 country liquor shops, in Assam. The excise department plays a crucial role in generating revenue for the state, with a collection of Rs 3,047 crore reported in the financial year 2021–22.
The proliferation of wine shops has been a point of contention, with various organizations in the state voicing their concerns. However, officials argue that shutting down these shops without similar measures in neighboring states would lead to illegal liquor trafficking into Assam, resulting in a loss of government revenue and potential risks to public health due to the circulation of inferior-quality liquor.