CHENNAI: The money is big, markets large and demands are endless. Yet, the TVK-led government has decided to exit the alcohol business and hand it over to private players to run. The reason it cited: there is no dignity in running Tasmac shops.
The privatisation will be limited to corporations and municipalities. Sources from the Department of Prohibition and Excise have confirmed the government decision and that necessary legal amendments on Prohibition and Excise Act will be tabled in the ensuing Assembly Session.
The move is largely being read as the beginning of the State government’s intention to close down all Tasmac shops across Tamil Nadu. Once the plan is put into action, around 2,500 shops, including bars, will be operated by private players.
The State has been operating liquor stores for 23 years. It was in the year 2003, during the AIADMK regime, that the government had decided to take over the business of operations of retail liquor shops.
"After the privatisation of shops in urban local bodies, the government wouldn't have to face allegations of excess MRP on bottles. The government will collect a licence fee from private players. This model is based on the one that is followed in neighbouring states like Keralam, Puducherry, Karnataka and Andhra Pradesh," an official said.
Tasmac operates 4,048 retail liquor outlets across the State. It is the largest revenue-generating component of the State government. According to the Excise and Prohibition Policy note for 2025-26, the state earned Rs 48,344 crore through excise duty and value-added tax (VAT) on liquor sales during 2024-25. This year, the corporation is eyeing more revenue from the additional levy imposed on liquor suppliers.
Meanwhile, the state government is set to explore various revenue streams to meet the shortcoming that the liquor shop privatisation may bring about.