The Delhi government has extended its existing excise policy for the financial year 2025–26, as preparations continue to draft a new regulatory framework for the liquor trade in the national capital on Friday (June 27). An order issued by the Excise Department confirmed that the excise duty-based regime, first implemented in licensing year 2022–23, and continued in 2023–24 and 2024–25, will now remain in effect from July 1, 2025, to March 31, 2026.
Licensing terms and conditions to remain unchanged
According to the order, all wholesale licences will be issued based on the current policy's terms and conditions, subject to payment of proportionate licence fees. “The terms and conditions of all licenses, which are renewable every year, are also continued for Excise Year 2025–26,” the notice added.
There will be no changes to pricing, label registration, source, or warehouse rules for existing licences or registered brands valid up to June 30. These brands may be re-registered for FY 2025–26 by submitting the required fees and undertakings.
Work underway on new excise framework
Chief Minister Rekha Gupta recently directed officials to prepare a draft of the new excise policy by June 30 (Monday). The goal is to ensure a transparent liquor supply system that maintains quality while boosting government revenue.
A high-level committee, led by Chief Secretary Dharmendra Kumar, has been tasked with drafting the policy by benchmarking against excise policies of other Indian states.
Old policy extended after scrapping of 2021–22 reforms
The currently extended policy- often referred to as the 'old excise policy'- was reintroduced in September 2022 after the Aam Aadmi Party (AAP) government withdrew its 2021–22 liquor policy due to allegations of irregularities.
The scrapped reform policy had aimed to liberalise Delhi’s liquor trade by exiting government-run retail and allowing private vendors to operate liquor shops. However, it was discontinued after Delhi’s Lieutenant Governor VK Saxena recommended a CBI probe into its formulation and implementation.
To avoid a regulatory vacuum, the old policy was brought back as an interim arrangement and has since been extended multiple times.
Current retail structure operated by govt corporations
Under the extended policy, retail liquor sales are managed by four Delhi government-run corporations, maintaining public control over alcohol distribution until a new private-public model is formalised through the upcoming policy.
