Minister Harshwardhan Chauhan
Shimla, April 16 – In a major development, the Himachal Pradesh government will now sell liquor through its own agencies after 240 liquor contracts remained unsold during the auction process. Industry Minister Harshwardhan Chauhan said on Tuesday that government corporations like Himfed, HPMC, Forest Corporation, Civil Supplies Corporation, and Municipal Corporation will operate the remaining liquor vends.
The move comes after the state’s ambitious auction plan failed to meet its target, despite conducting the process twice. Of the 2,100 liquor contracts in the state, only 1,700 were auctioned, leaving a significant gap. The state had hoped to raise ₹2,850 crore in revenue from liquor sales for the financial year 2025–26.
Why the Auction Failed
The auction, which began on March 18, aimed to generate higher revenue by increasing the cost of liquor contracts. However, in five districts, nearly 400 contracts remained unsold, even after the government tweaked the terms and invited individual tenders on April 9 and 10, allowing participation with a security deposit of ₹50,000 per contract.
Despite this more flexible approach, only about 160 contracts were sold in the second round, leaving 240 contracts still vacant. With the new financial year underway, the government opted for a direct-sale model through its own agencies to prevent revenue loss and ensure uninterrupted liquor availability.
Corporations to Begin Sales Soon
Minister Chauhan confirmed that agencies like Agro Industry Corporation, Himfed, and SIDC will start liquor sales in 1–2 days under government supervision. These corporations will now manage retail liquor outlets in areas where contracts were not auctioned.
The government is hopeful that this move will maintain supply chains, stabilize market rates, and avoid black marketing of liquor, especially in rural and remote regions where private bidders did not show interest.
This new model also raises questions about the long-term structure of liquor trade in Himachal Pradesh, as the state balances revenue generation with tighter control and oversight.
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