Madhya Pradesh New Excise Policy 2025

The Government of Madhya Pradesh has decided to impose a complete ban on the sale of liquor in 13 cities and 4 rural areas, including the holy city of Ujjain, starting from the next financial year. All liquor shops in these religious areas will be permanently closed. However, there will be no ban on drinking or possessing alcohol in these areas. The new excise policy was approved in a cabinet meeting chaired by Chief Minister Dr. Mohan Yadav.

New License Category for Restaurants

As per the new policy, cities like Bhopal and Indore will have a new license category for restaurants, resorts, and civil clubs. These establishments will be allowed to serve beer, wine, and ready-to-drink beverages, but hard liquor will not be allowed. The fee for this new license will be 50% higher than the regular bar license fee.

No Change in Narmada River Alcohol Ban

The alcohol ban within 5 kilometers of both banks of the Narmada River will remain unchanged. The policy for liquor shops will also be updated, with a 20% increase in the annual renewal fee for liquor shops. The renewal process will be followed by a lottery and e-tendering process. Renewal will only be approved for 80% of the shops if the 20% fee hike is agreed upon, otherwise, e-tenders will be conducted.

New Category for Local Alcohol

A new category for 'under proof' local alcohol (with an alcohol content of 60 degrees) has been introduced. This category will be available in new 180ml and 90ml packaging. Additionally, billing for all liquor stores will only be allowed through POS machines.

The new policy will also include provisions for the sale of alcohol with less than 10% alcohol content in certain categories, a model inspired by Uttarakhand’s regulations.