The State government, which is hoping to bridge revenue deficit and raise resources, has announced the timeline to auction 569 discontinued/unallotted liquor licences across Karnataka.
The live e-auction to bring transparency in allocation will be held between January 13 and January 20, 2026, and is expected to bring between ₹600 crore and ₹1,000 crores to the cash-starved exchequer.
While the base price in some interior rural areas has been fixed at ₹70 lakh, the highest base price of ₹1.5 crore has been fixed for 101 licences in Bengaluru city.
For certain licences in Mangaluru and Mysuru, the base price is ₹1.1 crore and in Tumakru base price is ₹1 crore.
Apart from monetisation of land and increasing excise duty on liquor, e-auction of liquor licences was among the means to raise resources to bridge the revenue deficit.
GST rate rationalisation in October, increase in cess collection by the Centre that is not devolved to the States and unable to garner the anticipated ₹3,000 crore through taxes on mines had hit the State’s anticipated revenue resource mobilisation.
The State is staring at a reduction in revenue between ₹15,000 crore and ₹18,000 crores this fiscal even as it is under pressure to fund its five guarantee schemes totalling about ₹60,000 crore annually.
The notification for e-auction through the MSTC portal was issued on Friday, and the auctioned licence will be granted for a period of five excise years for the period ending June 30, 2030.
The e-auction of licences had been announced by Chief Minister Siddaramaiah, who holds the Finance portfolio, in the Budget for 2025-2026.
A note from the government said that the discontinued/unallotted CL (2) given for retail shops and CL (11-C) given to government-owned Mysore Sales International Ltd. are classified as CL (2-A).
The discontinued CL (9) licences are classified as CL (9-A). The licences to be auctioned include 477 CL 2 for retail shops and 92 CL 9 for bars and restaurants licences across the State.
Of the total licences being e-auctioned, 24% will be reserved for Scheduled Castes (17%) and Scheduled Tribes (7%).
Within the 17% reservation for Scheduled Castes, the newly implemented internal reservation matrix of 6% each to Category A (Dalit Left-Madigas) and Category B (Dalit Right-Holeyas), and 5% to Category C (Lambani, Bhovi, Korama and Koracha along with 59 Alemari-nomadic communities) will be provided.
The e-auction of licences has generated interest in the liquor industry since the last allocation of liquor licences in the State was in 1992-1993.
In the absence of any fresh licences, the current licences are being leased out by licences holders at premium rates, especially in the urban centres.
A note from the government said that amendments had been made to the Excise Rules. The process to register bidders will commence on Monday, and training to the prospective bidders and district-level e-auction nodal officers will be held between December 23, 2025 and January 7, 2026.
Published – December 21, 2025 07:52 pm IST
