Making identical statements in both the Houses of the state legislature, Excise Minister Prakash Mehta said despite this reduction, the state exchequer would earn an additional revenue of Rs 42 crore annually. He said the government earned Rs 60 crore from license fees for manufacturing and selling liquor in 1998-99.

``The license fee was not increased since 1994 and the same was necessary to increase the revenue of the state. Considering this, the state government had raised the license fee by 300 per cent with effect from April 1999. The increased fee was applicable to manufacturers of liquor, beer and wine (IMFL and countrymade) and the restaurants as well as permit rooms which served them. However, the Hotel and Restaurants' Association, Joint Action Committee forProtection of Liquor Licensees, Maharashtra Wine Merchants' Association, Maharashtra Retail Dealers' Association and other associations had demanded that the license fee should not be increased. The Bar and Hotel owners had also observed a day-long strike on February 18, 1999. They had threatened of not renewing the existing licenses.

Representatives of the associations met Chief Minister Narayan Rane and Deputy Chief Minister Gopinath Munde on February 25, 1999 and requested to cancel the hike. The state government has decided to reduce the license fee, which will come into effect from April 1,'' Mehta said.

The revised license fees, with earlier fees in brackets are as follows: Wholesale IMFL -- Rs 2,36,000 (Rs 1,18,000); Retail IMFL in cities with 1 lakh population -- Rs 55,000 (Rs 27,000), in cities with population more than 1 lakh but less than 10 lakh -- Rs 1,45,000 (Rs 73,000) and in cities with population more than 10 lakh -- Rs 2,72,000 (Rs 1,36,000); license fee for permit rooms/restaurants incities with 3 lakh population -- Rs 1,16,000 (Rs 58,000), in cities with population more than 3 lakh but less than 10 lakh -- Rs 1,32,000 (Rs 66,000), in cities with population more than 10 lakh but less than 20 lakh -- Rs 2,31,000 (Rs 1,16,000) and in cities with population more than 20 lakh -- Rs 2,64,000 (Rs 1,32,000); wholesale countrymade liquor -- Rs 2,36,000 (Rs 1,18,000).