If auction fails, liquor units to be allotted to HP Beverages

The state government has cautioned that in case the auctions under the 'tender-cum-auction' excise policy for 2017-18 fail, the unsold liquor units would be allotted to the state-owned HP Beverages Corporation.
Following Supreme Court's orders to close liquor vends falling within 500 metres of the state and national highways, 950 vends have been relocated or closed. To make liquor units viable, the excise department has enlarged their size by including more vends.
However, the response in the first round of the auction was very poor as bidders did not turn up. About 50 per cent units were sold in four rounds of auction with 100 per cent units being sold in Solan, Kullu and Lahaul and Spiti.

The response was very poor in Una, Shimla, Sirmaur and Chamba districts and 60 per cent liquor units were sold in the biggest Kangra district.
The tourism industry has also been hit hard as even bars run by hotels and restaurants are affected by the apex court's order.
There are more than 100 liquor vends and over three dozen hotels and restaurants with bars falling within 500 metres of the Shimla-Kalka national highway alone and the number of such bars across the state was many times more.
The revenue from excise duty was estimated at Rs 1,350 crore during 2016-17 and the department hopes to garner over Rs 1,500 crore this year.

The department has also permitted liquor vends to open sub-end shops within a distance of 2 km from the auctioned vends on payment of a nominal license fee and other duties.