Uttar Pradesh eyes Rs 63,000 crore FY26 excise revenue

Uttar Pradesh is aiming to raise the state’s excise earnings to ₹63,000 crore this fiscal, said Nitin Agarwal, minister of the state with independent charge with the Department of Excise and Prohibition.Speaking to ET, he said the nearly 20% higher revenue over fiscal 2024-25 is credited to UP’s new e-lottery policy to allocate retail liquor shops. Agarwal also said a push for premiumisation of liquor business is underway in the state and an investment of around ₹7,900 crore is expected to set up more manufacturing facilities.

“The excise department is aiming for total earnings of Rs 63,000 crore in fiscal 2025-26…It is important to note the department earned ₹52,573 crore in fiscal 2024-25, surpassing its own target of ₹50,000 crore,” Agarwal told ET, adding that efforts were underway to attract investments in the alco-beverage industries in Uttar Pradesh.

According to official data, the state awarded 19 licenses to establish distilleries and 23 to run micro-breweries from 2022-23.

“On the UP invest portal, 46 projects are ready for the ground breaking ceremony through which investment of around Rs 7,888 crores is expected in the state,” Agarwal said.

Responding to queries about UP’s new lottery regime and a crackdown on monopolisation of the liquor business, he said, “The state is taking all necessary steps to neutralise the monopoly since 2018…Most of the retail shops are being settled through e-lottery.” Agarwal highlighted that the new policy bars any one person from holding licenses to more than two retail shops across the state. On the renewal of recently awarded retail shops for fiscal 2026-27, he said: “The right of final decision is with the government.”