The Ladakh administration has also argued that the existing “restrictive regime”, which had resulted in limited availability of brands and outlets, created an “artificial scarcity” that often deterred the tourists visiting Ladakh. This, the administration says, often prompted tourists to carry liquor with them, from outside the Ladakh region, also causing revenue loss to the UT.

Highlighting the new policy as a “significant reform” in the excise regime of the UT, the administration has stated that the new policy comes after extensive meetings with civil society organisations, NGOs, religious organisations, public representatives and government officials, in recent months.

“One of the major concerns raised in these meetings, was the increasing dependence on narcotic substances and psychotropic drugs, particularly due to the unavailability of hard liquor in Ladakh, prompting individuals to resort to illegal narcotic substances and smuggled and spurious liquor,” Ladakh’s Lok Niwas said in a statement.

Representatives of Ladakh Gompa Association and medical experts had also suggested expanding the liquor range at authorised vends, “to overcome the growing menace of drug abuse”. Taking note of the suggestions, LG Saxena had assured to review the existing excise policy.

A committee of officers was constituted to draft a revised Excise Policy and that examined the aspects concerning public convenience, prevention of illicit liquor trade, its societal impact, augmentation of excise revenue among other concerns.

The policy underscores rationalised duty for liquor, beer and wine; permission for “retail vends in guesthouses and homesteads along with availability in areas such as Nubra, Changthang, Sham and Zanskar. Earlier, liquor was only available in Leh city.

Additionally, the requirement of the “Opinion” of District Administration for grant of licence is now removed. With a view to optimise excise revenue, the annual fee for wholesale license has been increased from existing Rs 3.5 lakh to Rs 5 lakh. Base price for retail vends has been revised. The base price In Leh municipal wards has been fixed at Rs 60 lakh, while in other areas, it has been fixed at Rs 30 lakh.