Tamil Nadu is considering a major shift in retail liquor sales by allowing private operators to run about 50% of TASMAC outlets, with a focus on shops in Chennai and other large cities. Officials say the move is aimed at creating competition, improving customer service and reducing irregularities.
Retail liquor sales in the state were private until 2003, when the government brought the business under state control following allegations of malpractices, including spurious liquor sales. Since then, TASMAC has handled retail sales through its network of shops.
According to a TASMAC official, despite enforcement, complaints such as staff collecting extra money per bottle continue, causing reputational damage to the government. The proposed model is being discussed as a way to prevent leakages, bring money back to the state exchequer and increase revenue.
The report also notes recent steps taken by the current government, including the closure of 717 liquor shops and the introduction of additional payments to be collected from manufacturers—Rs 90 per liquor case, Rs 40 per beer case and Rs 20 per wine case—expected to yield about Rs 1,000 crore annually.
Separately, rules have been relaxed for tenders to run liquor-linked bars that sell snacks and soft drinks, allowing new bidders. Bars may also be permitted either adjacent to a liquor shop or within 100 metres of it. A legal amendment is under discussion to enable the broader privatization plan, which could split the state’s 4,048 outlets between TASMAC and private operators.
