STATE TIMES NEWS
JAMMU: The Government of Jammu and Kashmir has notified the Excise Policy 2026-27, which will come into force from April 1, 2026 and remain valid till March 31, 2027, unless revised earlier. The policy lays strong emphasis on social awareness, responsible consumption, revenue optimisation, prevention of illicit trade, and complete digitalisation of the liquor supply chain across the Union Territory.
According to the notification, the key objectives of the policy include creating greater social consciousness about the harmful effects of alcohol and drug abuse, encouraging a gradual transition from high to low alcoholic-content beverages, rationalising taxes and duties to maximise public revenue, and checking bootlegging and smuggling from neighbouring States and UTs. The policy also aims to strengthen the local liquor industry, curb illicit distillation, generate employment, and ensure transparency through end-to-end digital tracking from production to retail sale.
The policy provides a comprehensive framework for the issuance of various Excise Licences, including wholesale, retail, hotel, bar, club, military canteen, industrial alcohol, bottling plants, distilleries, breweries and wineries, strictly in accordance with the J&K Excise Act, 1958 and relevant rules. Permissions for serving liquor at social occasions in private and commercial establishments will continue on payment of the prescribed fee.
For Type A and Type B licences, a non-refundable processing fee of Rs 1 lakh has been fixed, along with a one-time upfront fee of Rs 10 lakh for issuance of a new JKEL-1 licence. Provisions have also been made to facilitate the introduction of BIO brands, import of liquor from approved sources, and expansion of wine and beer segments. To encourage tourism and responsible consumption, licences for retail sale of beer and RTD beverages will be permitted at tourism establishments, airports and designated locations.
The policy allows rooftop, terrace and balcony service for Type B licensees within municipal limits on payment of an additional 50 percent annual licence fee, subject to strict safety, visibility and security norms. Penalties have been prescribed for unauthorised liquor service at social functions, ranging from Rs 30,000 for the first offence to Rs 1 lakh for repeated violations. Retail liquor vends under Type C (JKEL-2) will be allotted through a transparent e-auction process. Only domiciles of Jammu and Kashmir above 21 years of age, meeting property, solvency and character requirements, will be eligible to participate. Detailed provisions have been laid down for premises clearance, operational timelines, temporary structures, electricity supply, fire safety and distance norms from educational and religious institutions.
The policy mandates strict compliance with Minimum Guaranteed Revenue (MGR) and Minimum Guaranteed Quota (MGQ) norms. Failure to deposit MGR on time may lead to suspension or cancellation of licence, forfeiture of deposits and re-auction of vends. Provisions for quota transfer of JK Special Whisky and JK Country Liquor have also been incorporated to safeguard government revenue.
As part of the Excise Policy 2026-27, the Excise Department of Jammu and Kashmir has announced that the allotment of retail liquor vends (JKEL-2/Type C) will be conducted exclusively through a secure and transparent e-auction process. The online auctions will be carried out on the official portal jkexcisedept.procure247.com, while detailed bidding instructions and procedures will also be available on the Department’s website jkexcise.nic.in.
According to the policy provisions, locations that fail to receive adequate response during the initial e-auction will be re-auctioned in the same manner. The Department has also reserved the right to cancel the auction process for any location where bidder participation is poor or where bid amounts are found to be disproportionately low compared to the sale potential of the area or earlier quoted bids, even after the declaration of the highest (H1) bidder.
To ensure responsible participation, strict eligibility criteria have been laid down. Bidders must be at least 21 years of age, be a domicile of Jammu and Kashmir, and possess immovable property in the UT equivalent to 100 percent of the minimum reserve bid value, or alternatively 50 percent property with the remaining amount furnished as a Bank Guarantee. Applicants must also have a clean criminal record and are required to submit a character certificate issued by the concerned District Superintendent of Police.
After being declared the H1 bidder, applicants must obtain premises clearance from the District Magistrate, who is required to convey approval or rejection within 15 days, failing which the premises shall be deemed cleared. However, to prevent loss of government revenue, such clearance will not be required where liquor vends were operational at the same premises in previous years. The licensing authority may also permit immediate operationalisation of vends under relevant rules to avoid procedural delays.
In cases where successful bidders are unable to arrange private premises, District Magistrates have been empowered to provide government land within 15 days for setting up temporary structures. Power supply to such temporary vends will be ensured within five days by the Power Development Department, subject to payment of electricity charges by the licensee. License holders must also ensure adequate fire safety arrangements.
For issuance of Immovable Property or Solvency Certificates, vendors must apply within 20 days of licence issuance, and the competent authority is mandated to issue the certificate within one month under the J&K Public Service Guarantee Act, 2011. Failure to act within the stipulated time will result in the certificate being deemed issued.
These provisions aim to ensure efficient vend allotment, revenue protection, transparency, and regulatory compliance under the Excise Policy 2026-27.
Overall, the Excise Policy 2026-27 seeks to balance public health concerns, economic interests and regulatory efficiency, while strengthening governance and promoting transparency in the excise sector of Jammu and Kashmir.
