The Delhi government is considering lowering the legal age for drinking beer from 25 to 21, sources said. The move currently under discussion by the Excise Committee is aimed at aligning the Capital with neighbouring states and boosting excise revenue while discouraging underage consumers from turning to hard liquor or illegal sources.
Committee reviews excise framework
According to officials, the Excise Committee headed by Public Works Department Minister Parvesh Sahib Singh met earlier this week with industry stakeholders to review Delhi's liquor policy. The panel which includes other cabinet ministers was set up last month to draft a "transparent and socially secure" excise framework.
"The current drinking age in Delhi is higher than in Uttar Pradesh and Haryana, where it is 21. This often pushes young consumers to Noida or Gurugram or towards illegal liquor. Lowering the age for beer could prevent this, while also helping the government increase revenue from alcohol sales," a senior government official said, as reported by sources. Officials however clarified that no decision has been finalised yet. The excise department has been asked to prepare a draft which will undergo further rounds of consultation before being placed before the Cabinet.
Past attempts and controversies
This is not the first time the Delhi government has considered lowering the drinking age. In 2021, the then Aam Aadmi Party (AAP) government proposed reducing it in its excise policy but the plan did not move forward. That policy which introduced private liquor shops soon came under the scanner of the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). The controversy led to multiple arrests of senior AAP leaders and the government scrapped the model in 2022. Since then only government-run corporations have operated over 700 liquor shops across the city.
Private vends may return
Sources said the current committee is exploring a return to a hybrid model that allows both government and private liquor shops, similar to the system that existed before 2021. Stakeholders have argued that state-run vends tend to push less popular brands due to fixed margins, limiting consumer choice and availability of premium labels.
"Margins are currently capped at Rs 50 per bottle for Indian-Made Foreign Liquor and Rs 100 for imported liquor. This uniform system has led to monopolisation and stock distortion. Rationalising margins is being considered to make premium brands more accessible,” a person aware of the discussions said.
Revenue and regulatory push
Delhi earns about Rs 8,000 crore annually through excise duty but officials estimate that the city loses Rs 4,000 - 5,000 crore in revenue leakage as consumers buy alcohol from adjoining states. Aligning the age limit and rationalising retail could help Delhi close this gap. Other proposals under consideration include permitting beer-only outlets adjacent to wine shops, relocating liquor vends to malls and commercial areas instead of residential zones and tightening monitoring of brand registrations to prevent manipulation of sales data.