Monday, April 3, 2017

How states are trying to steer clear of the highway liquor ban 

With the Supreme Court ban on liquor sales within 500 metres of national and state highways coming into force from April 1, several states are staring at a huge revenue loss and are looking at ways to minimise the impact on revenue. With the Supreme Court's ban on liquor sales within 500 metres of national and state highways coming into force from April 1, several states are staring at a huge revenue loss and are looking at ways to minimise the impact on revenu Many states are considering denotifying state highways within cities and towns and turning them into urban roads. States have also approached the Centre to find out if it can convert national highways into city roads to steer clear the Supreme Court order to shut down liquor vends and bars along highways. According to officials, a state can denotify the state highways within cities and towns in the state. For national highways, states need to approach the Centre. To counter the ban, the state administrations of Rajasthan, Madhya Pradesh, Uttar Pradesh and the Union Territory of Chandigarh have reportedly begun denotifying state highways to circumvent the ruling, an excise official

 According to the official, there have been several cases earlier where national highways were denotified as urban or major district roads The Ring Road stretch that passes through areas such as South Extension and Bikaji Cama Place in Delhi was a national highway earlier, which was rechristened as an urban road. Union Territory of Chandigarh has declared state highways as “major district road” about a month ago to avoid a Supreme Court ban According to an industry body estimate, the collective revenue loss from the ban could around Rs 50,000 crore. States which are dependent on tourism are the worst hit. These include Goa, Rajasthan, and union territories of Daman and Diu. Maharashtra’s Excise Minister Chandrashekhar Bawankule on Sunday said the state government will lose Rs 7,000 crore as a result of the ban on liquor sale along the highways, according to Press Trust of India. Around 15,699 establishments are likely to be hit in Maharashtra and the state is looking to denotify state highways around major cities like Mumbai, Pune and Thane. In Haryana, around 200 bars around Gurugram (Gurgaon) are likely to be affected by the ban.

 Goa has seen around 30 percent of its liquor outlet shut down following the Supreme Court order. Tamil Nadu has been hit very badly, with as many as 3,320 outlets run by state-owned sole retailer TASMAC being closed. In the national capital Delhi, about 100 bars and hotels along the highway have been closed located. The ban has also put millions of jobs at risk in the hotel and tourism sector. The Indian hospitality industry has government intervention to seek a way out of the ban as many five-star hotels, restaurant and pubs have stopped serving liquor. Cities of Mumbai, Delhi and Gurugram are the worst hit the ban as many pubs and hotels along the highways have gone dry. In a tweet, Niti Aayog CEO Amitabh Kant also said: "Tourism creates jobs. Why kill it?". Oberoi Group President Kapil Chopra also alluded to the impact on jobs. "It is very important that government and private sector should come together to resolve the issue as around 1 million jobs will be impacted due to the ban and the revenue loss too would be enormous 

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