Jharkhand cabinet clears new excise policy, hands over retail liquor sales to private sector

THE JHARKHAND STORY NETWORK

Ranchi, May 14: In a significant policy shift, the Jharkhand government, led by Chief Minister Hemant Soren, approved a new Excise Policy during today’s Cabinet meeting. The move is designed to overhaul liquor sales across the state, addressing revenue losses and allegations of irregularities under the previous model.

Retail Sales to Go Private

As per the new excise rules, retail liquor sales will now be handled by private entities. The state government will retain control of wholesale operations through the Jharkhand State Beverage Corporation Limited (JSBCL), while retail licenses will be distributed through a lottery-based system. An individual can hold up to 36 retail shops across districts.

Prices of various liquor categories will increase due to an additional excise tax, with hikes ranging between ₹5 and ₹100. The number of retail outlets is also set to expand to 1,500 to curb illicit sales and improve access.

Controversy Over Previous Excise Model

The overhaul comes after years of dissatisfaction with the old excise policy, which relied heavily on third-party placement agencies. Stakeholders and industry representatives, including the Jharkhand Sharab Vyapari Sangh, had flagged revenue losses, operational inefficiencies, and a lack of transparency. The Cabinet’s decision marks a break from that system and aims to modernise the industry through digitised tracking and improved oversight.

Other Key Cabinet Decisions

Apart from the Excise Policy, the Cabinet cleared 16 other proposals, touching various sectors from education to infrastructure and social welfare.

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Education and Administration

• Jharkhand Professional Educational Institutions (Regulation of Fee) Bill, 2025 was approved to regulate tuition fees and ensure affordability in private institutions.
• Appointment and Service Conditions Rules, 2025 for Acharyas, Principals, and Non-Teaching Staff in secondary schools (Class 9–12) were approved to streamline hiring and service standards.

Infrastructure and Water Supply

• Rs. 76.63 crore approved for the Madhupur Urban Water Supply Scheme, marking a revised technical sanction for expanding drinking water access.
• Rs. 55.20 crore sanctioned for the reconstruction of the Badkitand-Teenpalli-Dokidih-Girnia Mod Path road in Giridih district.

Defence and Youth Welfare

• Increased food allowance for NCC cadets attending training camps in the state, to support better nutrition and participation.

Air Services for VIPs

• Approved a six-month extension of aviation services for VIPs/VVIPs via M/s Redbird Airways Pvt. Ltd., including a twin-engine Turbo Prop aircraft, by relaxing existing finance rules.

Healthcare and Social Welfare

• Citizens above 70 years of age will now be covered under the Ayushman Bharat Mukhyamantri Jan Arogya Yojana, ensuring expanded access to health insurance.
• Approved AMC contracts for lift maintenance at three medical colleges (Hazaribagh, Dumka, Palamu), awarding the contract to Schindler India Pvt. Ltd. under a special nomination.

Labour Reforms and Nutrition

• Cleared the Factories (Jharkhand) Amendment Bill, 2025 in line with Central labour reforms to improve ease of doing business.
• Extended contracts for Micronutrient Fortified and Energy Dense Foods under the THR (Take Home Ration) program until 31 May 2025, benefiting Anganwadi beneficiaries.

Judicial and Disciplinary Matters

• Retained disciplinary action against Kanu Ram Nag, J.P.S., involving removal from service without future disqualification.
• Repealed the Bihar Jail Manual, adopting the new Jharkhand Jail Manual, 2025 to update correctional regulations.

Tender Reforms

• Relaxed tender settlement limits for a project under NH-32 in Dhanbad, allowing for a 17.89% excess over the Bill of Quantities due to urgency and complexity.