The Excise Department’s latest proposal seeks permission to establish 22 new liquor outlets operated by Mysore Sales International Limited (MSIL) Hospet and the possibility of liquor sales in supermarkets. The CL-11C license is a retail shop license issued to government-owned or controlled companies in Karnataka, India. The Deputy Commissioner grants the license only to companies owned or controlled by the state government.
The Karnataka Excise Department has stirred up a heated debate by proposing the licenses for new liquor stores in the Hospet and other states. The contentious plan encompasses 389 fresh liquor outlets managed by Mysore Sales International Limited (MSIL), the introduction of licenses for liquor shops in Gram Panchayats with a population of 3,000, and the potential inclusion of liquor sales in supermarkets. However, it is the allocation of 22 new MSIL (CL-11C) shops in Hospet that has garnered significant attention and discussion.
To provide more context, the proposal, at its core, aims to establish these 389 new MSIL (CL-11C) shops at various locations throughout Karnataka. Furthermore, it seeks to revive licenses for Independent Beer Outlets (R.V.B.), which had been dormant for over a decade. Currently, the state boasts 12,593 liquor outlets, and this proposal intends to supplement this number with the additional MSIL (CL-11C) shops.
Another key facet of the proposal is the suggestion to permit liquor shops alongside national and state highways within Gram Panchayats having a population of 3,000. It also considers legitimizing approximately 40% of shops that are currently leased to individuals instead of licensees or lessees.
With regard to the Retail Vend of Beer (RVB), the proposal introduces a license fee of Rs. 2 lakh, signifying the revival of these licenses after a prolonged hiatus. This change is intended to create a level playing field among businesses involved in beer sales. Additionally, the proposal introduces a new license category, CL-2(A), which permits liquor sales in malls and supermarkets in Bengaluru city and district centers, provided that the establishment size is at least 7,500 sq. m.
The proposal has triggered a range of opinions, with some viewing it as a means to adapt to evolving retail trends and foster healthy competition, while others express concerns about the potential consequences of increased liquor availability.