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Delhi submits new excise policy to Centre ahead of festive season

The Delhi government has forwarded its draft excise policy to the central authorities, with implementation expected before Diwali. The new framework marks a significant step forward after the previous 2021-22 policy was scrapped due to irregularities.

LSN India · 1 October 2026

Delhi submits new excise policy to Centre ahead of festive season

The Delhi administration has sent its revised excise policy to the Union government for approval, signalling plans to operationalize the framework before the approaching festival season. Officials indicated that the timeline allows for implementation well ahead of Diwali celebrations, which would provide the alcohol retail sector with clarity on new regulations.

The new policy arrives nearly four years after the 2021-22 excise framework was withdrawn following allegations of procedural irregularities and governance lapses. That cancellation had created considerable uncertainty in the state's liquor trade, affecting retailers, wholesalers, and government revenues.

The draft policy is expected to address concerns that prompted the earlier withdrawal while establishing a more transparent regulatory framework for the alcohol beverage sector. Stakeholders have been awaiting clarity on licensing, pricing, and operational parameters that would govern retail establishments across the national capital.

Once the Centre completes its review and provides necessary approvals, the Delhi government will be positioned to notify the policy formally and begin the implementation process. Industry participants have indicated their readiness to comply with the new requirements, provided sufficient transition time is granted before the policy becomes effective.