Business News
3 min read | Updated on September 12, 2025, 09:39 IST
SUMMARY
The Delhi government’s excise policy review committee is considering lowering the legal drinking age for beer from 25 to 21 years, in line with neighbouring NCR cities.
Officials say the move could curb revenue loss as younger consumers currently travel outside Delhi to purchase alcohol.
The Delhi government’s excise policy review committee is considering a proposal to lower the legal drinking age for beer from 25 years to 21 years, in line with neighbouring NCR cities, though no final decision has been taken yet, people familiar with the matter said on Thursday.
The high-level committee headed by Public Works Department (PWD) Minister Parvesh Verma is currently holding consultations with stakeholders, including liquor manufacturers and retailers, as part of preparations for a new excise policy.
“Nothing has been decided so far. Discussions are still underway on several aspects of the policy, including the legal drinking age. The idea is to boost excise revenue while ensuring there is no inconvenience to the public,” PTI quoted sources as saying.
Delhi currently has the highest legal drinking age in the country at 25 years.
In neighbouring NCR cities like Gurgaon, Noida, Ghaziabad, and Faridabad, the minimum age is 21 years.
Officials said this disparity results in a loss of revenue as people under 25 travel to these cities to purchase alcohol.
“It has been suggested that under the new excise policy, the legal age for consumption of beer could be lowered to 21 years to plug the loss of revenue,” the official said.
The panel is also examining measures to regulate retail liquor outlets by locating them away from residential colonies, educational institutions and religious places.
A proposal to facilitate the opening of vends in malls and supermarkets is under discussion, officials said. Currently, only 14 outlets are operational in malls across Delhi.
Suggestions have also been made to allow liquor sales at shopping complexes and fuel stations, they said.
Another area of focus for the committee is to prevent “brand pushing” in the retail market.
Presently, profit margins are the same on both mass-consumed liquor and premium brands, leading vendors to push cheaper products, officials noted.
Instances of registering multiple low-cost brands under different names to boost sales through government-run shops have also been flagged.
Delhi’s excise revenue currently stands at around ₹8,000 crore. Officials estimate that plugging leakages could raise this figure by ₹4,000–5,000 crore annually, taking total collections close to ₹12,000 crore.
The retail liquor business in Delhi is presently managed by four government corporations operating more than 700 outlets. The new policy may propose a hybrid model involving both government agencies and private players, reported PTI, though nothing has been finalised yet.
The new excise policy is expected to be finalised within the next three to four months, they added.
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