More MSIL liquor stores in the offing to check MRP violation

More MSIL liquor stores in the offing to check MRP violation

Proposal for 1,500 stores; Rs 35K cr revenue likely for Excise dept by 2021

More MSIL liquor stores in the offing to check MRP violation

The proposal to set up more Mysore Sales International Limited (MSIL) liquor stores is finally taking shape. The company, last week, submitted a proposal to the Excise department to set up 1,500 more stores in the State.

An official with MSIL told Deccan Herald that the proposal was submitted following a detailed survey conducted a few months ago. It has proposed that around 900 stores be set up in the first phase (four outlets per Assembly constituency) and 600 in the second.

The population as per the 2011 census, excise revenue of the previous decade, location and area-wise density of existing liquor outlets were the yardsticks for the survey.

The MSIL has projected that by 2020-2021, the overall revenue for the Excise department would be around Rs 35,000 crore.

Presently, there are 9,490 liquor outlets in the State - 9,083 run by private enterprises. Not only would this bring in additional revenue, setting up more MSIL stores would help control violation of the maximum retail price (MRP) by private enterprises.

Excise Commissioner S R Umashankar said that plugging revenue pilferage was posing a challenge to the department, as a majority of the private stores were violating the MRP and selling liquor at higher prices. More MSIL stores would help stabilise the market and check the pilferage, he added.

In 2010, MSIL was sanctioned 463 stores. It has, however, been able to set up only 407 stores.

Resistance by local residents for setting up more stores is a major hurdle that MSIL has not been able to overcome till date.

The MSIL official said that the remaining 56 stores would be set up in two months. “We have not been able to set up stores in Shivamogga, Chikkamagaluru and Uttara Kannada districts owing to local resistance. It has been decided to shift the stores allocated for Uttara Kannada to Belagavi, while the remaining stores will be spread across the State,” he added.

Top ten districts
The MSIL official said that of the 407 outlets, 40 outlets earn a revenue of over Rs 1.5 lakh per day.

Mysuru, with 16 outlets, contributes the highest turnover - Rs 23 lakh, followed by Belagavi (23) - Rs 22 lakh; Hassan (20) - Rs 21.5 lakh; Bengaluru urban (25) -  Rs 20 lakh; Tumakuru (21) - Rs 19.5 lakh; Kolar (12) - Rs 17 lakh; Raichur (12) - Rs 17 lakh; Mandya (15) - Rs 13.5 lakh; Bagalkot (14) - Rs 13.5 lakh; Chikkamagaluru (12) - Rs 12 lakh. MSIL earns a revenue of Rs 3.5 to Rs 4 crore every day.