From composite liquor shops to bars in IT parks: What changed in Uttar Pradesh from April 1

The Uttar Pradesh Excise Policy 2025-26 came into effect on Tuesday, introducing major changes to streamline liquor retail, including the merger of foreign liquor and beer shops into "composite shops".

"Under the new policy, separate foreign liquor and beer shops are being replaced by composite shops, increasing the retail density without increasing the number of shops," the Excise Department said in a statement.

These composite shops, requiring a minimum area of 400 square feet and meeting specific conditions, can be upgraded to "model shops" permitted to serve liquor on-site.

Country liquor shops can also sell beer, subject to compliance with stipulated norms.

The policy introduces low-alcoholic bars serving only beer and wine in Noida, Ghaziabad, Agra, and Lucknow.

It also allows bars and premium retail outlets within IT and ITeS establishments exceeding 20,000 square metres in development authorities and industrial areas.

Liquor tasting has been permitted for visitors at wineries, breweries, and distilleries, with retail shops now allowed to operate within these facilities.

The government has introduced 90ml bottles in the regular category of Indian-Made Foreign Liquor (IMFL), while premium segments will include 60ml and 90ml options.

Country liquor, previously sold in glass bottles, will now be mandatorily packaged in tetra packs to improve safety and curb adulteration.

Event bar licences have also been reclassified into distinct categories to prevent misuse.

"For the first time in seven years, all country liquor shops, composite shops, model shops, and cannabis shops in the state will be allocated through an e-lottery system instead of the renewal process followed earlier," Excise Minister Nitin Agarwal had said in February..

Under the new policy, applicants can submit only one application, and no individual will be allotted more than two shops across the state.

Processing fees for liquor and cannabis shops have been categorised into five slabs based on location.

In Category 1, covering development authority areas like Gautam Buddh Nagar, Ghaziabad, Lucknow, Agra, Varanasi, Prayagraj, Gorakhpur, and Kanpur (including a 3-km radius around municipal limits), fees are ₹65,000 for country liquor, ₹90,000 for composite shops, ₹1 lakh for model shops, and ₹25,000 for cannabis shops.

Category 2 (large cities) fees range from ₹60,000 to ₹90,000; Category 3 (municipal areas) from ₹50,000 to ₹80,000; Category 4 (Nagar Panchayat areas) from ₹45,000 to ₹70,000; and Category 5 (rural areas) from ₹40,000 to ₹60,000, with cannabis shops uniformly at ₹25,000 across all categories.

Local shop owners are adapting to the changes. Bijender Singh, who revamped his shop in Lucknow’s Lalbagh area, told PTI, "We are ready to run the shop according to the provisions of the new excise policy in the next two to three days. Preparations are going on in this regard.”