6. Prevention of Revenue Loss and Administrative Efficiency

• The primary objective is to:
  • Eliminate delays caused by the old adhoc approval process
  • Prevent revenue loss to the state
  • Facilitate faster production processes for manufacturers
  • Improve ease of doing business (EoDB)

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  ALCOHOL MANUFACTURING LICENSE TYPES AFFECTED

  The GR affects:

  • All domestic liquor (CL) manufacturing units in Maharashtra
  • All foreign liquor (FL) manufacturing units in Maharashtra
  • Specifically those engaged in alcohol/spirit manufacturing (not retail/bar licenses)

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  FEE STRUCTURE

  No new fees are introduced in this GR. The existing license fee structure remains unchanged. The quota allocation is now automatically proportionate to the existing license fees already being paid (अनुज्ञप्ती शुल्क).

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  DOCUMENTS/ENCLOSURES REQUIRED

  None specified in this GR. The change is procedural and does not introduce new document requirements.

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  IMPORTANT NOTES / CONDITIONS / PENALTIES

  Conditions:

  1. Automatic Nature: Quota allocation is now automatic upon payment of license fees — no manual application or approval is required.

  2. Financial Year Basis: All calculations and quota allocations are based on the financial year (वित्तीय वर्ष) — April to March.

  3. SCM System Compliance: The State Excise Department must ensure that:

     • Initial quotas are recorded in the SCM system at the beginning of the financial year
     • Additional quotas are recorded in real-time as additional license fees are paid

     • No Change to Base Quota Method: The method of determining the base/regular quota (based on highest 5-year consumption) remains unchanged. Only the allocation of additional/excess quotas is streamlined.

     • Proportionality Rule: Quota increase is strictly proportionate to the additional license fee paid — no discretionary increase.

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       IMPLEMENTATION AUTHORITY

       • Primary Implementing Authority: Commissioner, State Excise (आयुक्त, राज्य उत्पादन शुल्क)
       • Subsidiary Implementing Authorities:
         • All Divisional Deputy Commissioners, State Excise
         • All Superintendents, State Excise
         • All District Collectors (सर्व जिल्हाधिकारी)

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         REFERENCED PRIOR CORRESPONDENCE

         The GR references:

         • Letter from: Commissioner, State Excise Department
         • Reference Number: Alcohol Quota Allocation/11/2021/21-22/5-B
         • Date: 9 December 2021

         This prior letter recommended the streamlined procedure now formalized in this GR.

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         DISTRIBUTION / COPIES ISSUED TO

         1. Chief Secretary to the Chief Minister, Secretariat, Mumbai-32
         2. Leader of Opposition, Legislative Council/Assembly, Vidhan Bhavan, Mumbai
         3. Private Secretary to Minister/State Minister, State Excise, Secretariat, Mumbai-32
         4. Chief Secretary, Maharashtra State, Secretariat, Mumbai-32
         5. Principal Secretary (RAUSHSU), Home Department, Secretariat, Mumbai-32
         6. Commissioner, State Excise, Maharashtra State, Mumbai-23 [PRIMARY IMPLEMENTATION]
         7. All District Collectors (सर्व जिल्हाधिकारी)
         8. All Divisional Deputy Commissioners, State Excise
         9. All Superintendents, State Excise
         10. RAUSHSU-2 (for record/archives)

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         SPECIFIC LANGUAGE EXTRACTS

         Original Marathi Text (Section 1) — English Translation:

         "The method and procedure for allocating regular alcohol quota (मद्यार्क कोटा) and additional alcohol quota (अतिरिक्त मद्यार्क कोटा) for domestic and foreign liquor manufacturing is hereby modified and streamlined (नव्य करण्यात येत आहे)."

         Original Marathi Text (Section 2) — English Translation:

         "Manufacturing units shall automatically receive an alcohol quota in proportion to the license fee paid at the beginning of the financial year. Similarly, if the unit pays additional license fees during the same financial year, they shall automatically receive a corresponding increase in their alcohol quota."

         Original Marathi Text (Section 3) — English Translation:

         "From all foreign and domestic alcohol manufacturers, the approved alcohol quotas (based on additional license fees paid at the beginning of the financial year and any additional fees paid thereafter) shall be recorded in the SCM system from time to time, and the Excise Department shall take necessary action in this regard."

         Original Marathi Text (Section 4):

         "This resolution comes into effect immediately (तात्काळ प्रभावातून)."

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         CRITICAL PROCEDURAL CHANGES

         Aspect	Old Process	New Process
         Excess Quota Approval	Separate government pre-approval required (time-consuming)	Automatic based on additional license fee
         Processing Time	Multiple weeks/months for adhoc approval	Immediate/real-time
         Revenue Impact	Risk of revenue loss due to delays	No revenue loss — fee-based automatic allocation
         Manufacturing Flexibility	Limited by quota approval delays	Enhanced — quota available upon fee payment
         SCM Recording	Manual/delayed recording	Real-time recording mandatory

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         CONCLUSION

         This GR represents a significant administrative simplification of Maharashtra's alcohol manufacturing quota system. By linking quota allocation directly to license fee payments (rather than requiring separate approval), the state has:

         1. Eliminated bureaucratic delays in the quota approval process
         2. Reduced revenue loss from manufacturing delays
         3. Improved ease of doing business (EoDB) for alcohol manufacturers
         4. Ensured proportional allocation based on demonstrated demand (reflected in license fees)

         The change is procedural, not substantive — it does not alter which manufacturers qualify, the base quota calculation, or license fee amounts. It only removes an extra approval step, making quota increases automatic and real-time.