Explainer: New Excise Policy to take fizz out of Gurugram’s party scene

The new Excise Policy approved by the Haryana Cabinet, which will be applicable from June, is set to take glitz out Gurugram’s party life. Liquor vendors and booze lovers have been left disappointed.

What will be the impact of the new policy on ‘Bring your own booze’ culture of Gurugram?

Gurugram has created a niche for itself in the NCR party scene with a BYOB (Bring your own booze) culture. From sprawling setting to live music and dance performances, these are swanky taverns are party hotspots, which give Goa vibes. The new Excise Policy will reduce the operational size of BYOB places to a mere 1,000 square metres.

The reduction in size will impact the visitor capacity and importantly the ambience created by the BYOBs. The policy has also banned live music or dance performances in city taverns.

What will be the impact on restaurants and pubs?

Gurugram has the highest number liquor licence holding eateries in the NCR. The latest policy has hiked licence fee for serving liquor at a restaurant by almost 40%. The cost of the L4/L5 (restaurant) licence has increased from Rs 18 lakh to Rs 25 lakh. They are now being asked to pay Rs 45 lakh for a 21-month term. There’s an additional Rs 20 lakh annual fee to operate between midnight and 2 am. The restaurants must pay 20% of Rs 45 lakh (about Rs 9 lakh) if they wish to add extra counters or bars. The increase in the fee would lead to hike in prices of bar menu and the state would see a reduction in number of applicants for these licence.

How the new policy will affect prices?

The commonly consumed beer brands like Kingfisher, Carlsberg, Budweiser, Heineken and Tuborg will see an increase in their minimum sale price. These brands that were sold for a minimum Rs 90 for 330ml will be sold for Rs 150 after the new policy is implemented. Other Imported beers like Amstel and Corona, which have a minimum sale price of Rs 200 will now cost Rs 290. Besides, a minor surge will also be witnessed in per bottle prices of imported liquor like Absolut Vodka, Glenmorangie, Glenlivit and Glenfidditch. The increase will be around Rs 150 per bottle.

What is the reaction of sellers and patrons in Millennium City?

With beer becoming a grocery staple in summer months, the price hike had educed huge resentment from the corporate sector employees. Many have taken to social media to voice their resentment. The restaurateurs and BYOB owners have predicted a dip in excise revenue with latest changes. There will also be reduction in number of vends in rural areas leading to spike in prices in urban vends.