Karnataka to Hold Online Auction of Excise Licences from January 13, Likely To Earn Rs 1,000 Crore

The Karnataka Excise Department has announced that it will conduct an e-auction of excise licences across the State starting January 13, 2026. The auction will include 99 CL-9 licences and 477 CL-2 licences, which will remain valid until 2029-30. The initiative is expected to bring in nearly ₹1,000 crore in additional revenue for the state.

Speaking to reporters in Bagalkot on December 23, Joint Commissioner Fakirappa Chalwadi said the auctions are being held in accordance with recent government directives.

In Bagalkot district, licences will be available for outlets in Bagalkot, Badami, Bilagi, Hungund, Jamkhandi and Mudhol. Notably, the licence in Badami has been reserved for bidders from Scheduled Tribe communities.

Bengaluru Urban district will have the most licences up for auction, with 182 licences distributed across eight excise zones in the city.

The Karnataka government has fixed the base price for the licences between ₹70 lakh and ₹90 lakh, with bidders allowed to increase the amount by ₹20 lakh. Each participant must first pay an Earnest Money Deposit (EMD) of ₹1.60 lakh per licence.

Registration for the auction began on December 22, and the Bagalkot district e-auction will take place on January 16, 2026, from 3 p.m. to 5 p.m. To familiarise prospective bidders with the process, a training session on the e-auction was conducted in Bagalkot.

The event was attended by senior officials including Deputy Commissioner of Excise V.N. Thippeswamy, Superintendent of Excise Hanamanthappa Bhajantri, and other representatives of the Excise Department.

The e-auction initiative is part of Karnataka's efforts to modernise licence distribution and ensure transparency in the sale of excise charters across the State.