Ad Here  
A C Muthiah – his munificent bequeaths to science Put expensive assets created to use... CSR and CMI: promise of another Srinivasan Ramanujan... Small units prefers to remain small... A more liberated TN… Muffled voices for merit… Fall in crude prices help in oil sector reform Maximising the micro pricing … Should we change the official year? Naidu will soon build a new Hyderabad China invests in India How Air-India loses customs... Multi-faceted Venkat Preserving for the future Sweet news for TN sugar mills Secularism and anti-Hinduism Marketing expert Balagopal is no more Solar, solar everywhere … B H Kothari - a tribute Noble nonagenarians... TN accounts for the largest recruits by the IT sector There was flood of milk. Reason: no milk commissioner! Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai More heat than light Making ‘my Amaravati’... The Jan Dhan bonanza Focus on quality of power - its only around 170-180V Come elections, come advertisements... Make standards certification mandatory... S V Raju – a ‘good’ true liberal Align crops to agro climate endowments… An inexplicable neglect The Gulf aviation boom Silver Years of Madras Musings Mersal magnified ONGC at KG Basin Don’t seem to feel the pulse… Infrastructure funding – lessons learnt Sweeter prospects for sugar No engine for this car Discoms deserve better… Bihar – Nitish Kumar adopts the Lalu model Shale gas and its shallow future Cleaning Ganga – relocate tanneries and install electric crematoria Lalu’s envy, India’s pride No mega rail project for Tamil Nadu Mu Sigma – is no more The ‘Jayanthi Tax.’ Where a state respects its litterateurs… Streamlining mandatory third party cover Welcome focus on core competence Adapt Vajpayee dinner diplomacy Not just in-laws (and outlaws); they’ve renowned academics at the helm! A Grand Finale for SN’s MS centenary at the US… Insurance companies bleeding, yet no decision on increasing FDI limit! Road development slows down Pharma – overdose of copying All eyes on Sankara Nethralaya Valli, they are more marginalised to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Fortune 500 review S Ramanathan – a versatile musician, musicologist Delhi is distant More tributes to GR Modi storms Silicon Valley Colour-Chem’s colourful KRVS Odisha: spectacular win by Naveen Patnaik Contrarian cousins Intellectual of rare qualities Vibrant Gujarat Delhi is distant… Tribute – Manikam Ramaswami Tatas moving out of urea production... Liberal imports idling indigenous capacities Rs.1600 crore paper board plant of TNPL Remembering Indira Sivasailam... Convulsions in The Hindu Haul over the coal Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated New IT products of Ramco in the pipeline… Land reclamation from sea appears cheaper! The brown list of Venkitaramanan The why of tax incentives Editor's Notes Moily’s bold thrust Quality education through the PPP mode Rahman at CIC Fortune for Indian Airlines Protest masters... Recognition to role of NBFCs.... Welcome thrust on trade in Modi’s foreign visits... Fuel for thought CII projects higher growth… The rise and rise of KCP The sea- saw battle continues... Boy, can you beat these? Music happens The power-full Hindujas R Sridhar steps down as CEO of Shriram Capital Airlines in India: cost and space Banning booze... Computation of GDP – conundrums continue When TN politicians can emulate Kerala's Funding the un-funded Scientists urged to take up farmer-oriented research Gay abandon in pricing A proud Madrasi IAS invades NDDB... Adharma of opposition politics Kulandai was a giant Kinetic Karnataka Tatas moving out of urea production... He saved millions from starvation... The star of Spencers is no more Build close rapport with business leaders Things happen by accident and not by design... Cutting the nose to spite the face Welcome GST Roaring Ro-Ro facility Telangana in top gear… West Bengal: mindless malignancy An informal presentation - analytical, forward locking... Sri Lanka votes for change Kudos to NDTV... Revving up the manufacturing sector Reliance’s TV – 18 ready to launch Tamil News Channel The ‘Ayyo-yes’ is no more Demise of a media baron... EEC at the National Media Centre For whom the MIDS bell tolls? Tihar, Puzhal not different from Parappana Agrahara Like Hinduism: many paths to reach God... Bihar elections - the Rajaji formula worked Robber barons everywhere Measuring roof tops in terms of KW/MW Five star activism stalls development activity IPL type auction for VCs? Towards speedy justice The balancing act Why this malaise in medical education? Poor quality of university VCs This scant respect for Law F C Kohli - his concerns all embracing Return to king coal for urea... Shaming of Tamils by Tamil farmers at Delhi Medical costs hit the roof... Revive development banks... A welcome initiative by the judiciary WTO Meet: resolved to meet again Why land prices zoom in TN? Wise Presidents When the President was rendered homeless… CRS, a jewel among managers, is no more. IPL - no surprise this scam TELANGANA at last…BUT Plummeting profits of PSBs Welcome changes that testify to Jayalalithaa’s return to health Eternal support for capitalisation of PS banks Permanent secretariat for TN GIM Lesson from Chandrababu Naidu Of course, Gujarat is vibrant Tax agriculture L&T: focus on infrastructure and more infrastructure… A glass full of corruption PPP mode for upgrading Corporation Hospitals Modi and the lady Another Indian music maestro at the UN When nations steal growth from one another… Diamond jubilee of Egmore Samskrt School More Shakti to resource mobilisation... PC’s preference for professionals A professional at the helm of IRDA... A yen for wastage… Parliament in paralysis... Building loyalty through the stomach Limit foreign borrowings to hi-tech, export potential projects... A rich pool of talent not utilised…. TN – agglomerate land holdings without alienating ownership He continues the focus on social amelioration Quality silica from Neyveli Air Asia India will set new benchmarks for budget travel A friendly business group A think tank for Chennai Auto components surge… When online building permits work…. No Maha Koottani in TN... Where is Rajaji? For whom the bell tolls? Poor representation for Kerala and TN in Cabinet EVM is tamper-proof Tribute – UCAL Selvan… Paytm karo... TGS- The king storyteller Strengthen the base... Nuclear power at the nucleus Whistle-Stop Tour of Raghuram Rajan Gas is the way forward A Grand Finale for SN’s MS centenary at the US… The rise and fall of Annamalai University Tribute Waning interest in public discussions… An enemy’s enemy is a friend Increasing non co-operation of state leaders Which side are you, Montek? TIAM turns a full cycle Inflation: are we emulating Argentina and Brazil? Delhi returns to BJP The Ports’ Pasha expands into Tamil Nadu Russi Mody – a tribute Padma Bhushan for A Ramakrishna Excel Generators provide the vital back-up When small is no larger beautiful.. The Swadeshi Trump Polls and promises …and of a popular trade leader Breaththrough in malaria control Godspeed, Chief Minister JJ Naidu’s return augurs well for Seemandhra TN-leverage strength of BHEL, NLC... SoA @ 80 Tribute – M V Murugappan Tough task taking states together When Ratan Tata visited SRM MHC should not return to its old indisciplined ways Shipping woes of Chennai companies London, London Narayan L&T- the specialty of special purpose vehicles CIPET hqrs to stay at Guindy – for the present? Shanti and Sadhana through Music Wanted: a second airport for Chennai More Shakthi to Das’ elbow Editor's Says The few handicaps... GNS - 100: our first subscriber Engineering seats go abegging Alexa – Talking Wikipedia Dr C Rangarajan returns to Chennai Online not in line with brick and mortar businesses... Solar thermal shines… Cement prices continue to rise… Readers' Mail The nuclear option GM Technology at last! Delhi Chalo...
Banning booze...

An issue rocking Tamil Nadu politics is the re-introduction of prohibition of liquor. With elections to the state assembly due in the next 9/10 months, parties in opposition are demanding an end to the current liquor policy.

 The AIADMK government is worried over the impact of a huge loss of revenue by re-introducing prohibition. Excise income from liquor sales made through the state outlets of the Tamil Nadu State Marketing Corporation(TASMAC) is estimated around Rs 25,000 crore, forming around 15 per cent of state’s total revenue receipts for this year.

The state’s finances are not elastic. In total debts of the state, of around Rs 211,483 crore budgeted for 2015-16, a sizeable chunk, of around Rs 30,000 crore, of the state’s budgeted expenditure, goes for debt servicing including interest payments. Staff costs, including pensions, account for around Rs 60,000 crore. The state spends another around Rs 59,000 crore towards subsidies for food, power and a host of other freebies. These three heads together consume almost the entire revenue receipts of around Rs 150,000 crore leaving little resource for development.

Karunanidhi as chief minister scrapped prohibition in 1971 on the pretext of widespread bootlegging and difficulty of enforcing prohibition. After the humongous human suffering and havoc caused, DMK supremo Karunanidhi is re-thinking and indicates including the scrapping of the current liquor policy as the DMK party’s 2016 election platform. Other parties in the state – the PMK, VCK, Congress… – demand prohibition.

The havoc caused by liquor has indeed been extensive and humongous. A culture of celebrating birthday parties, marriages and festivals, of course election meetings and even mourning  deaths with liquor has become widespread. It is not uncommon to see school and college students holding booze parties in five star hotels.

 Kerala, which has been accounting for the highest levels of per capita liquor consumption, has announced the return to prohibition. Maharashtra Chief Minister Fadnavis has  pointed to his interest in this. Gujarat, Mizoram, Lakshadweep and Nagaland are the few states where prohibition has been in force.

 It is not easy though. While enforcement will demand great attention, revenue loss can be mitigated by better targeting of the numerous subsidies to the most needy sections. The NDA government has succeeded in reducing the outgo on LPG subsidy by fixing a limit and by direct cash transfer. The state should adopt such an approach. Surely this would serve a larger social good.


Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236