1.1 The basic feature of the Prohibition Policy of the State is to draw the economically weaker sections away from the evils of illicit liquor, which affects their health and ruins them economically. However, the reality is that drinking is a social phenomenon. Therefore, on pragmatic considerations, the Government is committed to ensuring that when people do consume liquor, they are provided with quality and standardized liquor through public sector retail outlets and get good value and safe quality liquor for the price paid by them, so that their lives and health are not endangered. At the same time, by ensuring public sector control over the retail sale of liquor, the Government taps the revenue potential from the more prosperous sections of the population by imposing suitable rates of duties and taxes on liquor and prevents the sale of non duty paid liquor even from some licensed outlets which had been noticed in the private retailing system.

1.2 In order to completely eliminate the sale of contraband, spurious and non duty paid liquor in some licensed premises under the system of retail vending by private persons, which can affect the health of the liquor consuming public, and widespread violations of Maximum Retail Price (MRP) of liquor fixed by the Government, both of which also cause loss of revenue to the Government, and in order to curb the organized groups and cartels who act in groups to ensure that applications are not made for a substantially large number of shops so as to keep them vacant, and thereby to corner the retail vending trade causing loss of revenue, the Government considered it necessary to grant the exclusive privilege of retail vending of Indian-made Foreign Spirits to the state owned Public Sector Undertaking, TASMAC. Accordingly, the Government amended the Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937) for the above purpose. From 29^th November 2003, the entire retail operations of IMFL in the State were taken over by TASMAC. There was an immediate impact on the growth of sale volume of IMFS which went up from monthly average of 12.44 lakh cases of IMFS to 14.29 lakh cases, which is a growth of 14.82%. The average monthly sales turnover of TASMAC for the period 29.11.2003 to 30.6.2004, as compared to the corresponding period of the previous year, has gone up from Rs.326.00 crores to Rs.421.00 crores (a growth of 29.14 %) and revenue (for the same period) has gone up by 10%. This was apart from eliminating widespread violations in MRP that was a feature of the private retailing system and also eliminating the sale of spurious liquor from licensed outlets.

1.3 The Government reiterates its commitment to fight relentlessly against illicit liquor and pursue its efforts even more vigorously to educate the poor and economically weaker sections of the population about the harmful effects of liquor, apart from rehabilitating erstwhile prohibition offenders in other legitimate gainful employment. All out efforts would continue to be made to eradicate illicit and spurious liquor and to prevent liquor tragedies by strict enforcement, by taking measures such as conducting awareness campaigns amongst the people, and providing alternative source of livelihood to prohibition offenders who have given up bootlegging activities.

2.1 The Government has been taking a number of resolute steps to put down the sale of illicit liquor and the sale of spurious non-duty paid liquor. In 2001, the auction system was replaced by a lot system as a salutary method to put down malpractices and to prevent cartelisation. Though this system was a definite improvement over the earlier system, when the Government sought to stabilize it further and introduced changes like increase in the number of shops, fixing a minimum off-take for each shop to ensure adequate off-take and to eliminate any tendency to sell non-duty paid liquor, the persons who used to control the retail trade earlier sought to subvert the system by resorting to vexatious litigation and also continued cartelisation by resorting to methods like benami applications etc.

2.2 The Government, concerned about the attempts of the various cartels to subvert one system after another, decided in September 2003 to bring in a totally new system of selection of licensees by merit through District Level Selection Committees, composed mainly of retired Judicial Officers. However, a number of existing licensees continued to resist these progressive measures and sought to set at naught the entire process by challenging the policy in Court, even while consciously adopting a policy of not applying for the shops in sufficient numbers to frustrate the new policy.

2.3 It became apparent that despite the various measures taken by the Government to introduce improvements in the system of selection of applicants for the grant of privilege to vend IMFL, as well as measures to put down the malpractices and to prevent cartelisation, the subversive actions of the cartels continued, and there were also clear instances of sale of spurious and contraband liquor by some licensees, with widespread violation of the Maximum Retail Price fixed by the Government, which worked against the interest of the consumers. The Government, therefore, had no choice but to take firm steps to put down the cartels, which would have seriously affected the retail trade in IMFL and caused loss of revenue to the State. The Government, therefore, decided to put an end to private retail trade in IMFL and took the bold step of granting exclusive privilege of retail vending of IMFL to TASMAC, a wholly owned Government Company, to ensure that the liquor consuming public are fully protected, to ensure that no non-duty paid liquor is marketed and to ensure that only safe liquor is dispensed to the consumers.

2.4. The bold steps taken by the Government have ensured that only duty paid IMFL is sold in the TASMAC retail outlets, at prices fixed by the Government, thereby fully protecting the interests of the consumers in terms of safety and price. It has also resulted in an immediate increase in sale volume and turnover of TASMAC and Government revenue as shown in the charts.

2.5. The sale volume of IMFS during the period from 29.11.2003 to 30.6.2004 was 100.02 lakh cases as against the sale of 87.11 lakh cases during the corresponding period of the previous year, which is a growth of 14.82%. The total revenue earned by Government by way of excise revenue and sales tax on the sale of IMFL during the period from 29.11.2003 to 30.6.2004 was Rs.2415.49 crores. During the corresponding period of the previous year, the total excise revenue (including the proportionate privilege amount of Rs.370.81 crores) and sales tax from the sale of IMFL was Rs.2203.24 crores. Thus, the additional Government revenue is Rs.212.25 crores which is a growth of 10%.

3.1 On the basis of the recommendations of the High Level Committee constituted in the year 2002, including raising of excise duty on Import / local purchase of Rum by Canteen Stores Department, increasing profit margin of Tamil Nadu State Marketing Corporation in the case of Indian Made Foreign Spirit and Beer for sale to Hotels and Clubs and levying a Special Import permit licence fee, on Indian Made Foreign Spirit and Beer items imported by Clubs and Hotels, levying of Registration/Renewal Fee, label approval in respect of Indian Made Foreign Spirit and Beer brands and merging of Manufacturers and the wholesalers vend fee with excise duty, an additional amount of Rs.30.11 crores was realized during 2003-2004. It is anticipated that during 2004-2005 an amount of Rs.32.77 crores will be realized.

3.2 In view of the difficulties faced in the production and supply of excise labels, and keeping in view the need to improve the security features of the existing label, an Expert Committee comprising leading scientists in the field of holography was constituted to suggest improvements in the system. Based on the recommendations of the Expert Committee, Polyesterised Hologram Excise Labels are now being manufactured at the new excise label Printing unit established in the Ground floor of the Ezhilagam Annexe Building in the Chepauk Complex. The new Excise Labels are being printed and issued from March 2004 onwards. The new Excise Labels are designed with features for machine compatibility and hence their application over Indian Made Foreign Spirit and Beer bottles is being done through mechanical applicators. The new exclusive Hologram excise labels contain more security features which cannot be duplicated and will prevent the illicit movement / sale of spurious liquor in the State, thus safeguarding the excise revenue to the Government.

4. ORGANISATION AND FUNCTIONS OF

4.1 The Prohibition and Excise Department in the Secretariat is headed by the Secretary, Prohibition and Excise. The Secretary is assisted by One Deputy Secretary apart from other supporting staff. Policy formulation and review of implementation of the policies are the main functions of the administrative department at the Secretariat level. The following are the three wings under the control of the Prohibition and Excise Department.

The Commissioner of Prohibition and Excise

The Prohibition Enforcement wing

The Tamil Nadu State Marketing Corporation Limited

4.2 The Commissioner of Prohibition and Excise is the Head of the Department. The Commissioner is assisted by two Joint Commissioners. (in the cadre of DRO), one Financial Controller (in the cadre of Joint Secretary to Government, Finance Department) and four Assistant Commissioners in the headquarters, besides a Flying Squad headed by an Assistant Commissioner to conduct surprise inspections and random checks.

4.3 The Commissioner of Prohibition and Excise assists the Government in formulating the policies and their implementation. He is in-charge of enforcing the Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937) and the rules made thereunder.

4.4 The Commissioner is the authority vested with the power of granting the privilege and licence to establish a distillery and manufacture of alcohol with the prior approval of the Government. With the prior approval of the Government, the Commissioner of Prohibition and Excise can grant privilege and licence for the establishment of manufacturing units of Indian Made Foreign Spirit and Beer. The power of granting annual renewal of the licences of units so established in the State is also conferred on him under the rules.

4.5 At the District level, the District Collector supervises excise administration. He has various statutory powers and responsibilities under the Act and Rules. The Collector is assisted by an Assistant Commissioner (Excise) in the cadre of Deputy Collector in all Districts except Chennai and Coimbatore, where Deputy Commissioners (Excise) in the cadre of District Revenue Officer have been assisting the Collectors.

4.6 Deputy Collectors are posted as Distillery Officers, Excise Supervisory Officers in the Distilleries and Indian Made Foreign Liquor manufactory units respectively. Revenue Officials in the cadre of Tahsildars and Deputy Tahsildars are posted as Excise Supervisory Officers and Bonded Manufactory Officers in the chemical units and Bonded Warehouses respectively to supervise the proper use of alcohol and to levy excise duty on excisable articles under the Tamil Nadu Prohibition Act, 1937, the Medicinal and Toilet Preparation Act, 1959 and the Rules framed thereunder.

4.7 There are 15 Distillery Officers in the cadre of Deputy Collectors in the Distilleries and 7 Excise Supervisory Officers in the cadre of Deputy Tahsildars in the DL licensed units (Chemical units using denatured spirit) one Excise Supervisory Officer in RL licensed unit (Chemical unit using rectified spirit) and 4 Bonded Manufactory Officers in the Bonded Manufactory Warehouses.

4.8 There are 38 Sugar Mills (19 in the Private Sector, 16 in the Co-operative Sector and 3 in the Public Sector) which produce molasses in the sugar manufacturing process.

4.9 As per the Tamil Nadu Molasses Control and Regulation Rules 1958, the Collector / Additional Collector / District Revenue Officer of the District are the competent authorities to issue licence.

4.10 Consequent on the decontrol of molasses, the Sugar Mills are free to sell molasses to any licensed user, depending on the quantity indicated in the licence.

4.11 In order to augment the revenue, an administrative service fee of Rs.200/- per Metric Ton of Molasses towards export from this State is levied.

4.12 However, in the context of the drought faced by different sugarcane cultivating areas of the State in 2002-03 and 2003-04, there is an overall shortfall in sugarcane production and the availability of molasses during the current molasses year commencing from October 2003.

4.13 The total quantity of Molasses produced during the period from October 2003 to June 2004 is 4.07 Lakh M.T. of which a quantity of 0.20 lakh M.T. of molasses have been exported to other States / Countries, fetching a revenue of Rs. 40 lakhs towards Administrative Service Fee. After reviewing the stock availability of molasses in the State, the Government have decided that no permission need be accorded for export of molasses during 2003-04 and 2004-05.

4.14 In the State, 15 Distilleries are manufacturing alcohol (the details are furnished in the Annexure-VI). Among the 15 Distilleries, 13 are in the Private Sector and 2 are in the Co-operative Sector.

4.15 Alcohol is used as raw material in the manufacture of Indian Made Foreign Spirit products, other chemicals and varnish. It is also used in small quantities by educational institutions, laboratories, research institutions etc.

4.16 The Government of India, in its order dated 10.6.1993 rescinded the Ethyl Alcohol (Price Control) Order, 1971. As a result, there is no price control on alcohol at present. Consequently, the Government issued guidelines regulating the sale movement, possession and use of alcohol by the licensees in the State. It was also clarified that the regulation on the use of alcohol for various purposes like sale, possession, use, import, export, transport would be governed by the existing State Rules, namely the Tamil Nadu Rectified Spirit Rules 1959 and the Tamil Nadu Denatured Spirit, Methyl Alcohol and Varnish (French Polish) Rules,1959. In order to prevent diversion and misuse of rectified spirit, issue of new licences has been made more stringent by framing the Tamil Nadu Rectified Spirit Rules 2000 in lieu of the Tamil Nadu Rectified Spirit Rules 1959.

4.17 Pursuant to the decision of the Government of India to introduce Ethanol doped petrol for use as fuel in Tamil Nadu, the State Government have issued orders accepting in principle the manufacture of Anhydrous Alcohol (Ethanol) by the distilleries in the State. Accordingly, necessary prior permission has been granted to Commissioner of Prohibition and Excise to make necessary endorsements in the licences of 5 distilleries for the production of Anhydrous Alcohol (Ethanol), subject to the condition that the distilleries should ensure adequate capacity utilisation of molasses for the production of alcohol for potable purposes, industrial uses as well as Anhydrous Alcohol. DL2 licences to the Oil Companies have been issued for 6 locations as applied for by them. The Oil Companies have also started supply of ethanol-doped petrol in the State.

Since Tamil Nadu is a water starved State, as an innovative measure of providing better and assured income to the farmers, the Hon'ble Chief Minister has announced a programme to promote Sweet Sorghum, Sugar Beet and Jatropha as viable alternate crops to bring new growth momentum to the rural economy. Expressions of Interest from Industrial Houses to take up the processing of Sweet Sorghum, Sugar Beet and Jatropha to produce ethanol and bio-diesel and other by-products have been called for. Existing distilleries producing ethanol from molasses can now come forward to expand / diversify to produce ethanol from Sweet Sorghum, Sugar Beet and Jatropha.

6.1 The Prohibition Enforcement Wing (PEW) was revived in July 1998 with the avowed objective of eradicating totally illicit distillation, transportation, possession and sale of illicit liquor / spurious and seconds IMFS and preventing its smuggling from other States. The Prohibition Enforcement Wing is headed by the Additional Director General of Police, Enforcement with effect from 13.06.2001.

6.2. The Additional Director General of Police, Enforcement is assisted by four Superintendents of Police, viz. Superintendent of Police, Central Investigation Unit (CIU) and Superintendents of Police, Enforcement, at Chennai, Salem and Madurai. The Superintendent of Police CIU heads the CIU (Central Investigation Unit), which is primarily an intelligence set-up with 2 Deputy Superintendents of Police, 6 Inspectors, 8 Sub-Inspectors and 1 Head Constable.

6.3. There are 94 PEW units throughout the State each headed by an Inspector of Police. There are 38 Additional Superintendents of Police and 38 Deputy Superintendents of Police (PEW) to cover all the Districts and Cities. The Units and the Officers are placed under the control of the District Superintendents of Police and Commissioners of Police, on whom primarily falls the burden of prohibition enforcement. The PEW Units are declared as Police Stations to enforce the Tamil Nadu Prohibition Act, 1937

6.4. The Additional Director General of Police, Enforcement exercises control over the PEW Units / Officers through the District Superintendents of Police / Commissioners of Police and also directly.

6.5. A comprehensive long term strategy was chalked out to prevent hooch tragedies. As Methanol was found to be a major factor, ways and means were devised to put an end to the free availability of Methanol. The need for a state-wide institutionalised setup for a systematic and sustained effort for the rehabilitation of prohibition offenders by alternative means of livelihood was stressed.

6.6. The Government issued orders in G.O.Ms.No.50 P&E(V) Department dated.18.02.2002 bringing Methanol under the purview of the Tamil Nadu Prohibition Act, 1937. In G.O.Ms.No.51 P&E(V) Department dated.18.02.2002, the Tamil Nadu Denatured Spirit, Methyl Alcohol and Varnish (French Polish) Rules, 1959 were suitably amended.

6.7. A Rehabilitation Fund was created and Rehabilitation Committees have been formed in all Districts of the State. The Rehabilitation Committees focus on identifying the prohibition offenders and providing them alternative means of livelihood. A sum of Rs.2,28,11,048 (Rupees Two crores Twenty Eight lakhs Eleven thousand and Forty Eight only) was released in March 2004. So far a sum of Rs.58,97,900/- has been spent on the rehabilitation of 416 persons in 16 Districts. The remaining districts have also selected beneficiaries under the scheme and will extend assistance to them shortly. Apart from this, the Rehabilitation Committees could mobilise funds from Banks and other sources to rehabilitate 138 prohibition offenders. This effort will be intensified further.

6.8. The Government in G.O.Ms.No.173, dated.31.08.2001, sanctioned the use of confiscated vehicles by PEW to increase the mobility of the Prohibition Enforcement Wing for its operations against prohibition offences.

6.9. The State-wide Awareness campaign to spread the message amongst the people about the dangers of illicit liquor / Methanol was continued during 2003-2004. Several NGOs, Voluntary Organisations and Women’s Self Help Groups have been associated. Posters and pamphlets have been printed and sent to Districts to exhibit in places. Slides are being shown in cinema halls. Village level street plays, seminars etc., were also conducted. The Rehabilitation Committees have provided an impetus to this Awareness Campaign. The Prohibition Vigilance Committees are active and they are providing the vital co-operation needed by Enforcement agencies.

6.10. 21 check-posts have been set up with strength drawn from the local police, which are located in Nagapattinam, Cuddalore, Villupuram, Dharmapuri, Salem, The Nilgiris and Coimbatore Districts to keep a vigil and check clandestine transport of seconds / spurious IMFS and arrack sachets from Pondichery, Andhra Pradesh and Karnataka into Tamil Nadu.

6.11. All out efforts are being made to firmly curb all kinds of illicit/ spurious/seconds liquor in the State. The steps taken by the District Police, PEW and CIU have contained the illicit distillation, transport and selling to a large extent. A concerted drive has also been undertaken against misuse and diversion of Methanol, which has been found primarily responsible for most of the liquor deaths in the State.

6.12. Prohibition Enforcement was tightened by stricter action against prohibition offenders and smugglers of illicit Distilled arrack, Rectified Spirit and spurious/ non-duty paid IMFS. Inter- State rackets in major transportation / manufacture of spurious / non duty paid IMFS were smashed and the kingpins behind these illicit activities arrested and detained under the Tamil Nadu Act XIV of 1982. The stress was on thorough investigation and effective prosecution of cases so that an impact would be felt where it matters the most. To curb smuggling of non-duty paid / spurious IMFS, Rectified spirit and ID arrack from Karnataka, Pondicherry and Andhra Pradesh, the functioning of the existing 21 sanctioned Check Posts was tightened and temporary Check Posts were established wherever necessary.

6.13. During the year 2003-2004,

•   A total of 898 notorious prohibition offenders were detained under the Tamil Nadu Act XIV of 1982.

• A total of 78.78 lakh litres of illicit distilled arrack was seized.

• 4.66 lakhs numbers of illicitly smuggled arrack sachets from Karnataka and other States were seized.

• A total of 3.71 lakh litres of Rectified Spirit was seized.

• A total of 5553 motorised vehicles including 346 four wheelers were seized.

• A total of 96.05 lakh litres of fermented wash was seized and destroyed.

• A total of 8505 distillation cases were detected.

• 2.36 lakhs prohibition cases were detected and 2.17 lakhs accused were arrested.

• 40398 litres of spurious / seconds IMFS smuggled from Karnataka/ Pondichery were seized.

• 175 litres of methanol were seized.

• 2052 criminal cases of smuggled IMFS were detected.

• 2.60 lakhs litres of Toddy were seized.

• 1,05,625 litres of Madhukhasayam were seized.

• Rs.5.49 crores was received as revenue by the Government by way of compounding the prohibition cases by Prohibition Enforcement Wing and through Court.

6.14. Section 52-E of Tamil Nadu Prohibition Act, 1937, in which the Magistrate has the power to remove the prohibition offender from his village or from the jurisdiction of the court, has been effectively used and 358 prohibition offenders have been removed from their places.

6.15. 56512 cases have been detected under the amended sections 4(1-A), 4(1)(aa) and 4(1)(aaa), included in the Tamil Nadu Prohibition Act, 1937.

6.16. Prohibition Vigilance Committees have been formed in all black spot villages with a view to eradicate illicit distillation and sale of arrack. The Black Spot Village Registers have been prescribed in every Police Station and PEW Units to systematically monitor the efforts to firmly curb the activities of bootleggers and to achieve the objective of illicit liquor free villages by eradicating all bootlegging activities in the villages through strict enforcement, rehabilitation work, Awareness Campaign and by eliciting the co-operation of the Prohibition Vigilance Committees.

6.17. Methanol being the main cause for liquor deaths, instructions have been given to Superintendents of Police and Commissioners of Police regarding the importance of close monitoring of the Methanol movements to prevent its pilferage or misuse. The District Superintendents of Police and Deputy Commissioners of Police, Additional Superintendents of Police and Additional Deputy Commissioners of Police, both PEW and District police have been strictly instructed to check the transport and usage of Methanol. From the State border, police escort is being provided for the Methanol tankers.

6.18. In the backdrop of the efforts taken to enforce the prohibition laws, renewed efforts are being undertaken to generate a determined state-wide drive by the Prohibition Enforcement Wing and Local Police to eradicate illicit distillation/sale of I.D arrack. Intensive action under the Bootleggers Act, which is vital to the curbing of bootlegging in the State is also taken in almost all cases, since the offenders are able to come out on bail within a few days. Action is also being taken to firmly curb the movement of spurious / seconds IMFS / Rectified Spirit into the State from Andhra Pradesh / Karnataka / Pondicherry.

In Tamil Nadu the District Police, Railway Police, Prohibition Enforcement Wing, Narcotic Intelligence Bureau, C.I.D. Department under the control of State Government and the Narcotics Control Bureau, the Collector of Customs and the Directorate of Revenue Intelligence, coming under the control of the Union Government, are enforcing the Narcotics Laws. During the year 2003, the Narcotics Intelligence Bureau has seized 3068.68 kgs. of Dry Ganja in 956 cases valued at Rs.1.53 crores. In respect of wet Ganja, the seizure was 131958 kgs. in 120 cases valued at Rs.46.18 crores. In respect of heroin, the number of cases detected was 23 and the quantity seized was 11.01 kgs. worth Rs.11.01 crores

During the year 2004, for the period from January to April 2004, the NIB has seized 751.700 kgs. of Dry Ganja in 377 cases valued at Rs.37.58 lakhs. In respect of Wet Ganja, the seizure was 4,658 kgs. in 8 cases valued at Rs.93.16 lakhs. In respect of heroin, the number of cases detected was 20 and the quantity seized was 24.122 kgs. worth Rs.24.12 crores.

8. TAMIL NADU STATE MARKETING

8.1. The Tamil Nadu State Marketing Corporation Limited (TASMAC) is a wholly State owned company incorporated on 23.05.1983 under the Companies Act, 1956, for the purpose of undertaking the wholesale distribution of arrack and Indian Made Foreign Spirits in the whole of the State of Tamil Nadu.

8.2. As per section 17-C (1-A) (a) of the Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937), TASMAC shall have the exclusive privilege of supplying by wholesale, Indian Made Foreign Spirits (IMFS) for the whole of the State of Tamil Nadu and no other person shall be entitled to any such privilege.

8.3. In order to completely eliminate the sale of contraband, spurious and non- duty paid liquor in the licensed premises under the erstwhile system of retail vending by private persons, which can affect the health of the liquor consuming public and wide spread violations of Maximum Retail Price (MRP) of liquor fixed by the Government, both of which also cause loss of revenue, the Government took a policy decision to hand over to the TASMAC the retail vending of IMFL for the whole of the State of Tamil Nadu with effect from 29.11.2003. For this purpose, exclusive privilege has been granted to TASMAC for supply by retail also as per section 17-C (1-B) of the Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937). Initially, in respect of urban areas, the retail vending of IMFL was done directly by TASMAC, and in rural areas through Co-operative Societies as its agency. However, with effect from 03.12.2003, 3261 shops run by the Co-operative Societies as agencies of TASMAC in Rural areas were taken over by TASMAC. Now, only TASMAC runs 7371 retail outlets and 3073 bars all over the State.

8.4. The Registered office of this Corporation is situated at Chennai. It monitors the purchase and distribution by wholesale / retail of IMFS and BEER products throughout the State.

8.5. In the Corporate Office, the Managing Director is assisted by three General Managers in the cadre of District Revenue Officer, one General Manager (Finance) and Company Secretary, two Managers and other supporting staff.

8.6. There are 5 Regional Offices at Chennai, Coimbatore, Madurai, Salem and Tiruchirapalli headed by Senior Regional Managers in the cadre of District Revenue Officers. There are 40 IMFS Depots situated throughout the State. These depots are controlled by Managers in the cadre of Tahsildars.

8.7. There are 29 District Managers’ offices situated at the rate of one per district and additional District Manager offices at the rate of two in Chennai and one in Coimbatore.

8.8. There are 7371 retail shops established all over the State. 3073 bars are attached to the retail shops. 7371 shop supervisors, 1635 bar supervisors, 20,000 salesmen, 4853 bar tenders and 200 area supervisors have been appointed on contract basis.

8.9. Tamil Nadu State Marketing Corporation has an authorised share capital of Rs.15.00 Crores subscribed by the State Government with 1,50,000 equity share of Rs.1,000/- each. Out of this, Rs.6.40 crores was released by the Government during the year 2003-2004. Besides this, the Government have been sanctioning ways and means advance as and when required. The State Bank of India, Commercial Branch has sanctioned cash credit accommodation up to a maximum of Rs.110.00 Crores.

8.10. There are 40 IMFS Depots functioning in the State. The Depots of TASMAC initially functioned in rented buildings. This was found inadequate since TASMAC’s business has grown more than 14 fold since 1983 resulting in large number of waiting lorries, stock outs of essential items etc. Hence, it was felt necessary to have own godowns for TASMAC with adequate storage capacity. During the year 1998-99 and 1999-2000, TASMAC took possession of the erstwhile blending units of TASCO and located the following Depots after carrying out repairs and renovation:-

1. Thirumazhisai-I 6. Tirunelveli

2. Thirumazhisai-II 7. Erode

3. Ambattur-I 8. Dindigul

4. Ambattur-II 9. Trichy

5. Kumbakonam 10. Cuddalore

8.11. TASMAC also purchased plots at Thiruvallur, Kancheepuram, Virudhunagar, Pudukottai, Tuticorin, Namakkal, Ramnad, Sivaganga, Thanjavur and Thiruvarur. Construction of office cum godown for TASMAC at these places has been entrusted to M/s.Tamil Nadu State Construction Corporation/ Tamil Nadu Police Housing Corporation. Construction work at the following places have been completed and Depots have started functioning:-

1. Ambattur - III 6. Virudhunagar

2. Thiruvallur 7. Ramnad

3. Namakkal 8. Pudukottai

4. Sivaganga 9. Kancheepuram

5. Tuticorin 10. Tiruvarur

11. Thanjavur

8.12. In order to streamline inventory management, to minimise stockouts of fast moving items, to set up a Management Information System which validates various statements / returns / claims submitted to the Corporate Office/Government, TASMAC has computerized the operations of all the 40 Depots and Corporate Office. This has resulted in effective inventory management and maintenance of optimum stock of all fast moving items at all depots.

8.13. The office of the Secretary to Government, Prohibition and Excise Department at the Secretariat has already been linked with TASMAC electronically at a cost of Rs.13.80 lakhs. The office of the Commissioner of Prohibition and Excise with the Secretariat and TASMAC is being now interlinked.

8.14. Out of the 40 TASMAC IMFS Depots, the software in 10 depots is being upgraded and the latest hardware equipment has been installed in these depots at a cost of Rs.36.17 lakhs (approx). Work on upgradation of software in 15 depots will be commenced shortly.

8.15. A website for TASMAC has been hosted, wherein information relating to the stock position of various brands at the Depots, maximum retail price of various brands and statistical information about TASMAC is being made available. The stock position and other relevant information are updated on a daily basis, so as to furnish the correct and the latest information to the viewers.

8.16. TASMAC continued to generate a surplus during the year 2002-2003 also and paid a dividend of Rs.35.00 lakhs to the Government at the rate of 5%.

8.17. The Department of Company Affairs, New Delhi have approved and notified the scheme of amalgamation of TASCO, the subsidiary company, with TASMAC, in the Gazette of India Extraordinary No.24, dated 09.01.2003. As per this notification, TASCO has been dissolved with effect from 09.01.2003. As per the scheme of amalgamation approved by the Government of India, the amalgamation has been effected with reference to the audited accounts and Balance sheets as on 31.3.1999 of TASCO Ltd and TASMAC Ltd and the transactions have been pooled into a common account. Accordingly, the resulting Company, viz., TASMAC Ltd has taken over all assets and liabilities as per the Balance Sheet of TASCO Ltd as on 01.04.1999 and accepted full responsibility for all the transactions of the TASCO Ltd thereafter. The resultant financial impact on the amalgamation has been reflected in the accounts of TASMAC Ltd for the financial year 2002 – 2003.

The Government is fully committed to the welfare of all sections of the people, with particular attention focused on the women folk. Every attempt is being taken to eradicate the hardship caused because of illicit distillation of arrack and consequential liquor tragedies. Vigilant and diligent action is being taken to curb illegal trafficking of prohibited items. Awareness against the evils of drinking is being spread through contact programmes and Non-Governmental Organizations. The Government would constantly review the Excise Policy so as to maximize the Revenue Collection without detriment to the health and well being of the public. While punitive measures are taken to curb illegal distillation etc., reformatory measures are also taken to enable the ex-offenders to turn a new leaf in their lives.

O. PANNEERSELVAM
Minister for Public Works, Prohibition & Excise and Revenue

Annexure (in pdf)

[Policy Notes]