New govt, old ideas: TN eyes Rs 2,700 crore additional revenue through liquor, mineral sales

CHENNAI: The Tamil Nadu government is targeting an additional revenue of around Rs 2,700 crore during the current financial year through reforms in the liquor and minerals sectors, according to the policy initiatives outlined in Governor Rajendra Vishwanath Arlekar’s address to the Assembly.

The Governor said the government has initiated coordinated measures to plug leakages and prevent diversion of revenue in key sectors, particularly Excise, and Mines and Minerals.

“The government is taking every measure to prevent leakages in revenue receipts and ensure that funds rightfully belonging to the State exchequer are credited to the treasury,” the Governor said.

Referring to the Excise sector, Arlekar noted that the government had recently imposed an additional privilege fee on liquor manufacturers. According to the government, the measure is intended to channel revenue that had previously escaped direct credit to the State treasury.

“Through this initiative, revenues that were earlier diverted have been regulated and brought directly into the State exchequer. The government expects to generate up to Rs 1,000 crore annually through the revised fee structure,” the Governor said.

The mines and minerals sector has also been identified as a major source of additional revenue. The Governor said the government was intensifying efforts to curb illegal mining and tax evasion through stricter regulation and enforcement.

“Organised illicit mining and tax evasion are being curbed with an iron hand to ensure that revenue flows directly into the government treasury without diversion. Through these measures, the government aims to substantially increase mineral revenue,” he said.

According to the Mines and Minerals Department's 2025-26 policy note, revenue from the sector increased from Rs 1,212.87 crore in 2021-22 to Rs 1,704.14 crore in 2024-25. Building on this growth, the government has indicated its intention to further enhance collections from the sector.

Taken together, the additional revenue expected from liquor-related fees and improved mineral revenue collection is estimated at around Rs 2,700 crore during the current financial year.