UP’s liquor tender for 2025-26 shows a major change. The state government wants to generate ₹55,000 crore in revenue, which is ₹4,000 crore more than last year. The excise department has received an impressive 365,268 applications. New liquor shop applicants have paid ₹1,987.19 crore in application fees. Interested parties can still apply online until February 28.
The policy brings exciting changes to UP’s liquor retail sector this year. Retailers can now open composite shops that sell English liquor, beer, and wine under one roof. The government has also introduced a state-wide e-lottery system to distribute licenses fairly. Each applicant can try their luck with just one shop application, making the process transparent.
UP Government Launches E-Lottery System for Liquor Licenses
The Uttar Pradesh Cabinet has approved a radical change in the state’s excise policy. The traditional renewal process will now be replaced by an e-lottery system to give out liquor licenses. This digital transformation starts March 6, with the e-lottery happening from 10:00 AM to 11:45 AM at Jupiter Hall in Indira Gandhi Pratishthan.
How Does the New E-Lottery System Work?
A computer-driven random system will select the licensees. The selection follows a clear order – country liquor outlets come first, then model shops, foreign liquor establishments, and beer shops. Officials will show how the selection works through a simulation to make sure everyone has an equal chance.
The e-lottery portal creates automatic allotment orders once selections are made. Selected applicants need to:
- Pay their full basic license fee online within three working days
- Find suitable shop premises within the given time
- Submit their documents to verify
The Licensing Authority cancels the allotment and starts resettlement if selected applicants don’t meet these requirements. The department sends SMS alerts to successful applicants who can then check their shop allocation by logging into the portal.
Who Can Apply for the Tender?
These are the key eligibility requirements to ensure fair distribution:
- Applicants should be 21 years old
- They must have a clean criminal record
- One person can submit just one application
- No one can get more than two shops across the state
To join the e-lottery, applicants must bring:
- Their registration slip from the e-lottery portal
- Original ID (Aadhar or PAN card)
- A recent photo
Anyone sending someone else must get an entry card from Lucknow’s district excise officer’s office first. The excise department asks everyone to use only the official portal and stay away from brokers or agents.
A District Level Committee of Licensing watches over the e-lottery process. This committee examines applications and identifies eligible candidates while clearly explaining why some are disqualified. The government wants to create a transparent and quick license distribution system through this approach.
Composite Shops Transform UP’s Retail Landscape
UP’s retail liquor trade faces a major change with the new excise policy that introduces composite shops. These shops combine beer and foreign liquor outlets into one location to give customers a better shopping experience.
What are Composite Shops?
These shops come in two types – you’ll find country liquor with beer in one, and Indian Made Foreign Liquor (IMFL) with beer in another. Shop owners won’t need separate licenses for beer sales anymore. Country liquor shop owners can now upgrade their stores by adding beer counters to create composite shops.
Where Will These Shops Operate?
Composite shops will line up across Uttar Pradesh with different numbers for each region. Noida will have 239 composite liquor stores along with 234 country liquor shops and 27 model shops. The policy helps you retain control over shop density. Each district can’t have more composite shops than the total number of existing beer and foreign liquor shops.
How Will Integration Happen?
Here’s how the shops will combine:
- Beer and foreign liquor shops next to each other will become one unit
- Separate stores will turn into unified composite shops
- The changes will boost retail density without adding more shops
This integration brings more benefits. The permit room system for beer shops in 2024-25 won’t exist anymore because of these composite shops. This optimized approach matches successful models that already work in Rajasthan, Madhya Pradesh, and several southern states.
The excise department expects better control and business unity through this integration. Customers can now buy all types of alcoholic drinks in one place. This makes shopping easier while keeping strict oversight of distribution channels. The government wants to modernize UP’s liquor retail world and regulate the market better through these changes.
Government Sets New Revenue Targets
Chief Minister Yogi Adityanath’s cabinet has set bold financial goals for next year. The excise department aims to collect ₹55,000 crore, which is ₹4,000 crore more than last year.
Why Rs 55,000 Crore Target Matters
The higher revenue target shows how the state plans to boost its finances. The original licensing fee structure stays the same, with premium retail shops still paying an annual fee of ₹25 lakh. The state has made some changes though, like bumping up the license fee per bulk liter from ₹254 to ₹260.
The state wants to stop any single company from dominating the market. No one can hold more than two licenses anywhere in the state. The new policy sets different processing fees based on location:
- Category 1 (Major Development Authorities): ₹65,000 for country liquor, ₹90,000 for composite shops
- Category 2 (Large Cities): ₹60,000 for country liquor, ₹85,000 for composite shops
- Category 3 (Municipal Areas): ₹50,000 for country liquor, ₹75,000 for composite shops
How Will Price Changes Impact Market?
Companies must now deal with higher operating costs that are changing the market rapidly. Glass prices have doubled in just one year, which cuts deeply into profits. Market experts still see hope and predict 7-8% growth each year for the next five years.
Several key factors shape today’s market:
- Raw material prices, including extra neutral alcohol and packaging materials, have hit new highs
- Premium brands keep growing despite tough competition
- Companies need smart cost management to stay profitable
The new policy requires country liquor to come in tetra packs to make it safer. Foreign liquor now comes in 90ml bottles for regular categories, with both 60ml and 90ml options for premium brands. These changes try to match what customers want while following rules and supporting the ambitious revenue goals.
Technology Reshapes License Distribution Process
The National Informatics Center (NIC) leads the implementation of a reliable digital infrastructure for UP’s liquor license distribution. Private agencies no longer participate in the e-lottery process. The government now directly oversees license allocations.
Digital Documentation Requirements
The Nivesh Mitra portal acts as the main platform to apply for licenses. Applicants need these digital documents:
- Registration slip generated from the e-lottery portal
- Original identification documents (Aadhar/PAN)
- Recent photographs to verify identity
Successful registration gives applicants their unique credentials through email and SMS. The system needs email and mobile verification before submitting applications. Applicants must then complete these steps:
- Fill the Common Application Form
- Create a new business unit profile
- Select “License for Retail Shops” service
- Choose district and shop identification details
Security Measures for E-lottery
The excise department uses complete security protocols to protect the e-lottery system’s integrity. A dedicated committee of district magistrates, additional district magistrates, and police officials supervises the whole process.
The system’s security features include:
- Up-to-the-minute data analysis of applicant credentials
- Automated scrutiny of submitted documents
- System-generated digital signatures for licenses
- Instant SMS notifications to selected candidates
The department’s three-working-day deadline applies to license fee payments for selected applicants. Sector magistrates and police officers maintain watchfulness during e-lottery proceedings to stop unauthorized activities.
Officials run simulation processes before each e-lottery to show transparency. This confirms equal selection probability for all participants. The system creates allotment orders after selections finish. Applicants can see their allocated shops through secure portal login credentials.
The excise department tracks compliance through specialized systems throughout the license distribution process. This technology substantially reduces human intervention and thus lowers the risk of procedural irregularities.
Conclusion
UP’s liquor tender 2025-26 introduces most important changes with its digital-first approach and reforms. The state will move to an e-lottery system that will give a fair distribution of licenses. Retail operations become smoother with composite shops throughout the state. These improvements help the government reach its revenue goal of ₹55,000 crore.
The National Informatics Center provides a strong digital system without private agencies. This makes everything more transparent. License distribution remains secure with detailed eligibility rules and safety measures. Applicants receive automatic updates and need less paperwork now.
This modern system needs proper execution and everyone’s support to succeed. The official TenderShark keeps you informed about these opportunities with all tender details. The state’s mutually beneficial reforms definitely show its commitment to create a well-regulated, quickest way to run liquor retail. This system works better for business owners and customers alike.
FAQs
Q1. What are the key changes in UP’s new liquor policy for 2025-26?
The new policy introduces an e-lottery system for license distribution, composite shops combining different types of liquor sales, and a revenue target of ₹55,000 crore. It also implements stricter regulations on license ownership and new packaging requirements for certain liquor categories.
Q2. How does the new e-lottery system for liquor licenses work in UP?
The e-lottery uses a computer-driven randomized selection process. Applicants can apply online, and if selected, they must pay the license fee within three days and arrange suitable premises. The system aims to ensure fair and transparent license distribution.
Q3. What are composite shops in UP’s new liquor retail landscape?
Composite shops are new establishments that combine the sale of different types of liquor under one roof. They merge separate beer and foreign liquor outlets or country liquor with beer, offering customers a comprehensive shopping experience while streamlining retail operations.
Q4. What are the eligibility criteria for applying for a liquor license in UP?
Applicants must be at least 21 years old, have a clean criminal record, and can submit only one application. Each individual is limited to a maximum of two shops across the state. Proper identification and documentation are required for the application process.
Q5. How has technology impacted the license distribution process in UP?
Technology has significantly reshaped the process, with the National Informatics Center implementing a secure digital infrastructure. The system includes real-time verification of credentials, automated scrutiny of documents, and immediate SMS notifications to selected candidates, minimizing human intervention and reducing procedural irregularities.
