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Explained: Delhi Excise policy faulty or faulty implementation?

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AAP government’s new excise policy 2021-22 that came into force on November 17 last year has drawn severe criticism from the opposition and the industry experts in the national capital for multiple reasons.

Under the new policy, the retail licences were given to private bidders for 849 vends across the city divided into 32 zones. Opposing the policy, the opposition has lodged complaint with the L-G as well as central agencies seeking a probe into it.

The allegations

Delhi LG Vinai Kumar Saxena has recommended a CBI probe based on the Delhi Chief Secretary’s July 8 report which has flagged “deliberate and gross procedural lapses to provide post tender undue benefits to liquor licensees for the year 2021-2022”.

The Chief Secretary report has also pointed out prima facie violations of GNCTD Act 1991, Transaction of Business Rules (ToBR)-1993, Delhi Excise Act-2009 and Delhi Excise Rules-2010.

As the Excise Department is headed by Manish Sisodia, he faces allegations of financial quid pro quo in executing major decisions around the excise policy which reportedly huge financial implications.

He also extended undue financial favours to the liquor licensees much after the tenders had been awarded and thus caused huge losses to the ex-chequer.

The Excise Department reportedly gave a waiver of Rs 144.36 crore to the licencees on the tendered licence fee citing pandemic as an excuse. The excise department under Sisodia revised the formula of calculation of rates of foreign liquor and removed the levy of import pass fee of Rs 50 per case on beer on in its November 8, 2021 order.

The AAP government is also accused of attempting to legalise “these illegal decisions” by getting the nod of cabinet as recently July 14 which is said to be in violation of laid down rules and procedures.

Aam Admi Party’s defence

In a press briefing shortly after LG recommended a CBI probe, Delhi Chief Minister Arvind Kejriwal termed the case “false” and said that BJP is afraid of AAP’s expansion.

“The whole case is fabricated. I have known Sisodia for the past 22 years. He is honest. When he became a minister the Delhi government schools were in a poor condition. He worked day and night to bring them to the level where a judge’s child and a rickshaw driver’s child sit together to study,” said CM Kejriwal.

Policy that led to liquor crisis

Delhi residents are facing the shortage of liquor of their choice as the capital city is witnessing shortage across various categories at many outlets in the city. Even some premium category whiskies are not available in below one litre quantity at various outlets.

On being asked about the reason behind such shortage, the outlet keepers have one word to say “supply chain problem”. Among many other reasons, one important factor causing shortage is the new policy which has led to the sharp decline in the number of wine shops being operated currently in the market.

“Only around 464 shops are in operation currently in the market whereas the city like Delhi must have around 850 outlets to serve the residents”, said an industry expert on condition of anonymity.

What Expert says

The industry expert says that policy was good, however on ground level, the implementation was not good. “I believe that the Excise policy was and is fundamentally good. It takes a different and progressive look at alcohol sale and consumption befitting a modern metropolis that Delhi is. However, I think that implementation on ground fell short. It was too slow, in patches and unable to break away from historical bureaucratic apathy towards trade. In its concept, the size of zones is too big”, Vinod Giri, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC) told IANS.

Giri said that the industry has repeatedly raised the matter of keeping zone sizes small to reduce financial stakes of licensees, improve loss bearing capacity if any, and prevent monopolies. “We also have suggested more simplicity and flexibility in operational issues such as license ownership changes. I am of view that with some tweaking the policy can deliver what it was meant to – positive dividend for all stakeholders”, Giri told IANS.

Opposition’s Claims

Union minister and New Delhi BJP MP Meenakshi Lekhi on Friday alleged the violations by Delhi government in the Delhi liquor policy.

Addressing a press conference, Lekhi showed documents saying that they “exposed” discrepancies by the government in giving waivers to liquor firms.

Lekhi claimed, “firms were given a waiver of Rs 144.36 crore on 14 July 2022 without the Cabinet’s nod.”

She further claimed that in another instance, a company was returned its Rs 30 crore earnest deposit money without following the due procedure.

International News

‘Saw People Facing Shortage, Felt Deeply Concerned’, Says Consulate General of Iran In Mumbai Amid LPG Crisis; Calls India ‘Friend & Partner’

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Mumbai: Consulate General of Iran, Saeid Reza Mosayeb Motlagh, on Friday said that Tehran is deeply concerned about India’s LPG crisis. Calling India a “friend and partner,” he added that despite risks in a conflict-like situation, Tehran ensured safe passage for gas carriers to India.

While speaking to media, he said, “The Islamic Republic of Iran has, from the very beginning, shown that it is a friend and partner of India. Personally, as the Consul General of the Islamic Republic of Iran in Mumbai, when I saw people facing a shortage of gas, I felt deeply concerned.”

“As you know, the situation is effectively a war zone, and gas carriers face their own risks; even the smallest impact can lead to serious consequences. However, by the grace of God, Iran was able to provide a safe passage so that these vessels could cross securely. This demonstrates our friendship with India,” he added as quoted by media.

Meanwhile, the Indian-flagged crude oil tanker, Jag Laadki, carrying approximately 80,886 metric tonnes (MT) of crude oil, arrived in Gujarat. Before that, LPG tanker Shivalik, which crossed the war-hit Strait of Hormuz, arrived at Gujarat’s Mundra Port. It roughly carried 40,000 metric tonnes of cooking gas from Qatar. These critical deliveries come at a time when the West Asia conflict caused LPG shortages across India.

India, the world’s third-largest crude importer, sources 88 per cent of its oil needs from abroad. It consumes 5.8 million barrels per day, of which 2.5-2.7 million barrels come from West Asian countries like Saudi Arabia, Iraq, and the UAE via the Strait of Hormuz. The choke point also carries 55 per cent of India’s cooking gas (LPG) and 30 per cent of liquefied natural gas (LNG), used for power, fertilisers, CNG, and household cooking.

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Business

LPG Crisis: How A Simple Digital DAC OTP System Is Plugging A Massive Black-Market Loophole

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India’s cooking gas distribution network has long been plagued by a quiet crisis – subsidised LPG cylinders meant for households routinely ended up in the black market, diverted by unscrupulous delivery personnel and agents. With the LPG crisis now deepening due to the US-Iran war, the government’s answer to this is deceptively simple – an OTP.

The Delivery Authentication Code (DAC) is a one-time-use code used to verify the legitimacy of home LPG cylinder delivery, ensuring the cylinder reaches the rightful customer. When a booking is made, the customer receives the code on their registered mobile number, which must be shown to the delivery person before the cylinder changes hands.

Ever since the crisis began, the government has significantly scaled up this system, with DAC coverage now reaching nearly 72 percent of deliveries, up from 53 percent earlier. The Ministry of Petroleum and Natural Gas has directed oil companies to ensure the DAC system is used in at least 80 percent of LPG deliveries, making OTP verification mandatory for the majority of cylinders.

Oil Marketing Companies (OMCs) have introduced the DAC system – sent via SMS and shared with delivery personnel – to ensure verified delivery, with IVRS/SMS refill booking also implemented nationwide, providing alerts at key stages including booking, cash memo generation, and delivery.

If distributors fail to meet the DAC requirement, the system flags cylinders as still in the agency’s inventory even though they have been delivered -creating a digital paper trail that exposes irregularities and improves transparency across the supply chain.

Consumers can ensure they receive DAC codes by taking these steps:

– Link your mobile number to your LPG consumer ID via your distributor or the Indane/HP/Bharat Gas app.

– Book via IVRS by calling your provider’s helpline – the DAC is sent automatically via SMS upon booking.

– Update details online at iocl.com or your respective oil company’s portal.

– Visit your distributor with photo ID and consumer ID if SMS is not being received.

– If the OTP does not arrive, customers can show their Aadhaar card as an alternate identity verification to receive the cylinder.

With the government pushing toward an 80 percent DAC compliance target, the system represents a low-cost, high-impact fix to a problem that has cost the exchequer significantly. For millions of households, it also means the subsidised cylinder they paid for will actually reach their doorstep.

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Business

India’s power plants well stocked with coal as PSUs step up production

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New Delhi, March 19: India’s thermal power plants have adequate coal stocks of around 53.41 million tonnes which are adequate for nearly 23 days at the present rate of consumption, and further stocks are also being built up at the pitheads of coal mining companies as a proactive measure to meet any exigency amid the disruption in oil and gas supplies due to the Iran war, the Ministry of Coal said on Thursday.

The pithead coal stock at the mines of Coal India Limited (CIL), which was 106.78 million tonnes (MT) as on April 1, 2025, has grown to about 125.54 MT as on March, 18, 2026. Further, there is around 5.75 MT of coal at the mines of Singareni Collieries Company Limited (SCCL) and another 15.75 MT coal at the mines of captive/commercial mines and about 12 MT in transit and about 5.49 MT in ports and good-shed sidings, according to a statement issued by the ministry.

Coal is continuing to ensure reliable baseload power to support core industries such as steel and cement that underpin the economic growth of the country. The coal production in the country continues at a pace matching the prevailing demands of the consumer and building adequate stocks at the mine-end for maintaining adequate supplies to the consumers as per their requirements, with the continued support of Railways, the statement said.

Coal India Limited is taking adequate measures to ensure the supply of coal to all consumers, including small, medium, and other consumers. As a proactive step, CIL has planned 29 e-auctions in the month of March, offering about 23.56 MT of coal. Out of these 29 auctions, 5 auctions have already been conducted since March 12, wherein 73.1 lakh ton of coal was offered, and 31.96 lakh ton of coal has been booked, indicating adequacy of coal offered in the e-auctions, the statement said.

In addition to this, CIL has also taken necessary action to ensure coal availability to the small, medium and other consumers through the State Nominated Agencies (SNAs) route and requested the state governments to provide the additional coal requirement, which can be met in full to avoid any energy shortages. The coal offtake of the states through the SNAs is being constantly monitored by CIL to ensure that uninterrupted supplies are ensured, the statement said.

The Ministry of Coal is ensuring a performance-driven ecosystem through sustained policy facilitation, robust monitoring mechanisms, and proactive stakeholder engagement. These concerted efforts are aimed at providing reliable coal availability, enabling uninterrupted operations across critical sectors, and effectively meeting the nation’s growing energy demands, the statement added.

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