UP’s new excise push: Beer and wine shops coming to multiplex malls in GB Nagar

In a major step to liberalise retail alcohol sales and make them more accessible to small entrepreneurs, the Uttar Pradesh government has begun a pilot project under its new excise policy, allowing the sale of low-alcohol beverages such as beer in multiplex-equipped malls, officials at excise department said on Thursday.

As part of the initiative, the excise department has begun accepting applications for a newly introduced FL-4D licence, which allows the retail sale of beer, wine, and other beverages categorized as low in alcohol content. The scheme is currently being implemented on a pilot basis in Gautam Budh Nagar, Ghaziabad, Agra, and Lucknow, officials said.

The licence comes at a significantly lower annual cost of ₹6 lakh, compared to the earlier provision where only FL-4C licenses were available at ₹25 lakh per year, permitting the sale of premium liquor in malls, officials said.

“By introducing the FL-4D licence, the government aims to democratise alcohol retailing, allowing more participants, especially small business owners, to enter the market, while keeping premium operations under the more expensive FL-4C framework. This is a step towards inclusive participation in the sector, without the high barrier of licence costs. However, the sale or consumption of any form of alcohol inside cinema halls will remain strictly prohibited. These low-alcohol beverage shops will only be allowed outside the cinema premises within the mall,” said Subodh Kumar, district excise officer, Gautam Budh Nagar.

“An application for the FL-4D licence has already been received from a mall in Noida Sector 43 while two more applications have been filed from other locations,” he added.

To be sure, the FL-4C licence is meant for setting up premium liquor shops inside malls, allowing the sale of a full range of alcoholic beverages, including high-alcohol content drinks such as whisky, rum, vodka, gin, and brandy, along with beer and wine. These outlets maintain high-end standards in terms of interior setup and service. However, the annual licence fee for the license is ₹25 lakh, making it accessible primarily to large businesses or franchise holders capable of running premium retail operations.

In contrast, the FL-4D licence, introduced under the state’s new excise policy, is a more affordable and focused option aimed at small entrepreneurs. It allows the retail sale of only low-alcohol beverages and can be set up in malls that have multiplexes. Both licenses prohibit the sale or consumption of alcohol inside cinema halls, although shops can operate in other areas of the mall, officials said.

In a parallel move, the department has also started accepting applications for FL-7(1) licences for restaurants. The licence will allow establishments to serve low-alcohol content beverages like beer and wine with an annual fee of ₹4 lakh.

“As part of Uttar Pradesh’s revised policy, this licence aims to broaden the legal availability of low-alcohol drinks in restaurants and create new revenue opportunities for the hospitality industry. An orientation meeting is expected soon with members of the National Restaurant Association of India (NRAI), Noida chapter, along with other restaurant owners, to explain the licensing process and policy implications,” the district excise officer said.

“The move has been made possible due to the proactive efforts of the state government, and we are glad to see that the implementation of the FL-7(1) licence has finally taken place. It will significantly benefit the hospitality industry by making it more viable for restaurants to serve low-alcohol beverages. Earlier, the cost of obtaining a licence was around ₹17 lakh per annum, which was a major barrier for many establishments. The revised fee structure is a welcome and much-needed change for our sector,” said Varun Khera, president, National Restaurant Association of India, Noida chapter.