
The Uttar Pradesh Excise Policy 2025-26 officially came into force on April 1, 2025, introducing significant changes to the state’s liquor retail system. Minister of State for Excise Nitin Agarwal announced that under the new framework, English (foreign) liquor and beer will now be sold from the same retail outlets, simplifying the customer experience.
Key Changes Under the New Policy
Composite Shops Introduced:
Separate outlets for foreign liquor and beer are now merged into "composite shops." This integration increases retail access without increasing the number of licenses.
Model Shops with On-Site Consumption:
Retail units with a minimum area of 400 square feet and meeting specific criteria can be upgraded into ‘model shops’. These shops can serve liquor on the premises, offering a bar-like experience.
Country Liquor Shops Allowed to Sell Beer:
Select country liquor shops are now permitted to sell beer under regulated conditions, enhancing retail penetration in rural and semi-urban areas.
New Low-Alcohol Bars in Key Cities:
Beer and wine-only bars (low-alcohol) are being introduced in Noida, Ghaziabad, Agra, and Lucknow to promote lighter alcohol consumption venues.
Premium Retail in IT Hubs:
Premium liquor retail outlets and bars are now allowed within IT and ITES zones covering more than 20,000 square metres in development and industrial areas.
Event Bar License Restructured:
The Event Bar License system has been categorized into multiple types to prevent misuse during public and private events.
Tourism and Industry Boost
The policy aims to promote liquor tourism by incentivizing distillery, winery, and brewery tours. The state will facilitate licenses and permissions for tourism-based alcohol establishments.
E-Lottery System for Shop Allocation
For the allocation of liquor and cannabis shops, the government has introduced an e-lottery system, improving transparency and reducing manual intervention.
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