97 liquor vends open for auction in Chandigarh, Palsora outlet set at highest reserve price

The Chandigarh Administration has announced that 97 liquor vends will operate in the city during the new excise year starting April 1. These licences will be allotted through an e-auction under the Excise Policy 2026–27.

Among all the liquor outlets, the vend located in Palsora village has been given the highest reserve price in the city. The administration has fixed its reserve price at ₹11.41 crore. This makes it the most expensive liquor vend in Chandigarh for the upcoming financial year.

Officials said that the auction for these licences will take place on March 19. The e-auction will be conducted at Hotel Mountview located in Sector 10 of Chandigarh.

According to the excise and taxation department, the auction process has already attracted strong interest from contractors. More than 300 contractors have applied so far to participate in the bidding process. The last date for submitting applications is March 18.

The administration expects the auction to generate significant revenue for the city government.

Palsora expected to attract highest bids

The liquor vend in Palsora has remained one of the most sought-after outlets in the city for several years. This is mainly because of its location close to Mohali in neighbouring Punjab.

Liquor prices in Mohali and other parts of Punjab are usually higher compared to Chandigarh. Because of this price difference, many buyers prefer purchasing liquor from outlets located near the city border.

Due to this advantage, contractors are often willing to bid higher amounts for vends located in these areas. Officials believe the Palsora outlet could again receive the highest bids during this year’s auction.

Last year, the same vend had received the highest bid of ₹14 crore. The reserve price at that time was ₹10.22 crore, but competitive bidding pushed the final amount significantly higher.

Another liquor vend that usually attracts high bids is located in Dhanas, which is also close to Mohali. Like Palsora, this area benefits from heavy customer traffic due to the price difference between the two states.

Officials expect both these locations to once again receive strong interest from contractors.

In contrast, some liquor vends located in inner sectors of the city usually have lower reserve prices. For example, the vend located in Sector 41C Market has been given the lowest reserve price this year. The administration has fixed its reserve price at ₹1.93 crore.

The large difference in reserve prices shows how location plays an important role in determining the value of liquor licences.

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Revenue expectations from auction

The total reserve price for all 97 liquor vends in Chandigarh has been fixed at ₹454 crore. This means the administration hopes to collect at least this amount through the auction process.

However, the final revenue could be much higher if bidders offer more than the reserve price during competitive bidding.

Excise revenue is one of the biggest sources of income for the Chandigarh administration. Every year, the government earns a large portion of its revenue from liquor licences and related taxes.

During the financial year 2025–26, the excise and taxation department has already collected ₹863 crore in revenue till March 15. The total revenue target for the year was ₹900 crore.

Officials said that most of the revenue comes from liquor vend licence fees. These fees alone contributed ₹490 crore to the total revenue collected so far.

Apart from licence fees, the administration also earns money through excise duties and other charges. Official records show that excise levies generated around ₹272 crore during the current financial year.

Additional income also came from other types of licences issued by the department. These licences contributed ₹36 crore to the total revenue.

Retailers also pay assessment fees, which added another ₹33 crore to the government’s earnings.

Although the excise department expects to come close to its annual target, some liquor vends remained vacant during the current financial year. Out of the total 97 vends available in Chandigarh during 2025–26, only 88 were successfully allotted.

The remaining outlets did not receive any bidders and therefore stayed vacant throughout the year.

Officials hope that this year’s auction will attract more bidders and ensure that all or most of the liquor vends are successfully allotted.

To increase participation, the administration has been promoting the auction process among contractors and businesses involved in the liquor trade.

The use of e-auction is also meant to improve transparency and fairness in the allotment process. Contractors can place their bids digitally, which reduces the chances of irregularities.

Authorities believe that the strong response from applicants so far shows that there is good interest in the city’s liquor trade.

With more than 300 contractors already applying, competition during the auction is expected to be intense.

If bidding remains strong, the Chandigarh administration may be able to exceed the total reserve price of ₹454 crore and earn higher revenue.

The results of the auction will determine which contractors will operate liquor vends across the city from April 1.

For now, the administration is preparing for the auction event scheduled at Hotel Mountview. Officials expect that the process will play an important role in shaping the city’s excise revenue for the coming year.