PANAJI
In a move aimed at improving the ease of doing business in Goa's tourism and hospitality sector, NITI Aayog has recommended extending the validity of bar licences from the existing one year to five years and introducing a single liquor licence for hotels covering all service areas within the same premises instead of requiring multiple permissions.
The recommendations have been made in NITI Aayog's report, 'Unlocking Growth in Tourism and Hospitality Sector', which has called upon the Goa Excise Department to amend the State Excise Act and Rules to simplify the licensing framework.
The report notes that Goa is among at least seven States, including Uttar Pradesh, Tamil Nadu, Rajasthan, Jharkhand, West Bengal and Assam, where bar licences are valid only for one year. In Goa, the annual licence fee ranges from Rs 40,000 to Rs 3.7 lakh, depending on the category.
Highlighting the need for reforms, the report stated that "time-limited licences can create unnecessary compliance burdens and discourage long-term investment."
“Short renewal periods for bar licences create a recurring compliance cost for restaurants and bars,” it said, adding that compliance is better ensured through inspections and enforcement rather than mandatory annual renewals.
Referring to the Department for Promotion of Industry and Internal Trade's Business Reforms Action Plan (BRAP) 2022, the report observed that eliminating frequent renewals or allowing auto-renewals would significantly reduce recurring compliance costs.
The policy think tank has also proposed replacing multiple liquor licences within hotels with a single licence covering all service areas on the same premises.
At present, hotels holding a valid bar licence are not permitted to serve liquor in guest rooms, poolside areas, terraces, lawns or banquet halls without obtaining separate licences for each location.
“Separate licences for different service areas within the same hotel premises create operational rigidity and can restrict service flexibility. Multiple licences increase documentation requirements, inspection frequency, licence fees and renewal timelines,” Aayog said.
As a best practice, the report cited the recommendations of the Expert Committee on Excise Reforms (2020) under the Delhi government, which had proposed replacing multiple retail liquor licence categories with a single licence for simplification.
Move to end p’yat NOC for homestays
After raising red flag over proliferating unregistered homestays in Goa, NITI Aayog has now proposed major reforms in Goa's homestay registration process by recommending the removal of the mandatory No Objection Certificate (NOC) from village panchayats or Municipal authorities and introducing a self-registration system.
The report noted that under the Goa Registration of Tourist Trade Act, 1982 and Rules, 1985, registering a homestay can require clearances from up to nine different authorities, apart from registration with the Tourism department.
Among these, operators are required to obtain an NOC or licence from the local body before commencing operations.
The report observed that homestay owners currently have to comply with around 11 regulatory requirements, obtain approvals from multiple departments and subsequently maintain separate renewals, resulting in a cumbersome compliance process.
"The requirement for homestay operators to obtain NOCs from multiple authorities can create administrative hurdles and delays in the registration process," the report stated.
As a model for reform, NITI Aayog cited Kerala, which removed the Panchayat and Municipality NOC requirement after examining the difficulties faced by homestay owners, thereby simplifying the registration process and reducing regulatory hurdles.
