Chandigarh, April 12 (IANS) The new excise policy in Punjab will fetch the state an additional Rs.1.25 billion in 2007-08. The government claims that "bold initiatives" taken by it would ensure quality liquor at affordable prices.

Punjab Chief Minister Parkash Singh Badal said that compared to the revenue of Rs.15.24 billion in 2006-07, the revenue from liquor sales was expected to be over Rs.16.49 billion in 2007-08 - an increase of 7 percent.

Badal said that of the additional revenue generated, Rs.760 million would be earmarked for social security schemes.

He assured complete transparency in allotment of liquor shops. The allotment would be made through a draw of lots in the presence of observers.

"We want to ensure healthy competition among retailers. They will be allowed to lift 30 percent of their quota from any distillery of their choice," said Badal.

The chief minister said that to curb smuggling of liquor from neighbouring states, hologram stickers would be affixed on all liquor bottles in the state.

Excise officials said they have decided to allot more liquor shops near the state border areas so that the retailers help the excise department check smuggling from neighbouring states.