MAHARASHTRA EXCISE DEPARTMENT — DOCUMENT ANALYSIS

Document Type: Government Resolution (GR)

Reference Number: GR No. MYS 1221/PR.CR.235/RAUSHSU-2

Issued By: Government of Maharashtra, Home Department (महाराष्ट्र शासन, गृह विभाग)

Date of Issue: 14 January 2022 (14 जानेवारी, 2022)

Effective Date: Immediate effect (तात्काळ प्रभावातून/With immediate effect)

Portal ID: 1551

Website Reference Number: 202201141554327729

SUMMARY

This Government Resolution introduces procedural modifications to the alcohol quota allocation system for domestic (देशी) and foreign (विदेशी) liquor manufacturing units in Maharashtra. The GR streamlines the process of allocating regular alcohol quotas and additional/excess alcohol quotas (अतिरिक्त मद्यार्क कोटा) to reduce administrative delays, prevent revenue loss, and improve ease of doing business (EoDB) for alcohol manufacturers. The resolution mandates automatic quota allocation based on license fee payments made during the financial year, eliminating the need for separate government approval for excess quotas.

KEY PROVISIONS

1. Automatic Quota Allocation Based on License Fees

• Alcohol manufacturing units shall automatically receive an alcohol quota (मद्यार्क कोटा) proportionate to the license fee (अनुज्ञप्ती शुल्क) paid at the beginning of the financial year.
• If any manufacturing unit pays additional/excess license fees during the same financial year, they shall automatically receive a corresponding increase in their alcohol quota (वाढीव/अतिरिक्त मद्यार्क) without requiring separate government approval.

2. Elimination of Adhoc Quota Approval Process

• Previously, when a manufacturing unit's alcohol demand exceeded their established capacity, an adhoc/temporary alcohol quota required separate government pre-approval — a time-consuming process.
• This GR eliminates that requirement; additional quotas are now automatically granted based on additional license fees paid.

3. Real-Time Quota Recording in SCM System

• All manufacturing units must ensure that their approved alcohol quotas (regular and additional) are recorded in real-time in the SCM (Supply Chain Management) system at the beginning of the financial year.
• Whenever additional license fees are paid during the financial year, the corresponding quota increase must be recorded immediately in the SCM system.
• The State Excise Department must take necessary action to ensure such timely recording.

4. Scope of Application

• This GR applies to all domestic alcohol (देशी मद्य) manufacturing units in Maharashtra.
• This GR applies to all foreign alcohol (विदेशी मद्य) manufacturing units in Maharashtra.

5. Quota Determination Basis (Unchanged)

• Regular (non-excess) quotas continue to be based on the highest quota consumed by the manufacturing unit in the preceding 5 years, treated as their "established capacity" (स्थापित क्षमता).
• This basis remains unchanged; only the allocation process is streamlined.

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)

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)

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).

DOCUMENTS/ENCLOSURES REQUIRED

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

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

4. 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.

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

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)

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.

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)

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)."

CRITICAL PROCEDURAL CHANGES

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.