Kapil’s Eleven on Frazer Road. Picture by Deepak Kumar

The astronomical hike of over 300 per cent in the bar licence fee imposed by the state government has failed to make a dent in the liquor market in Patna.

According to the latest records of the excise department, 52 of the 67 existing bars, including those at city hotels, have renewed their licences for the financial year, 2013-14.

The excise and prohibition department had increased the bar licence fee from Rs 5 lakh to Rs 16 lakh with effect from April 1.

Though it led to intense protest from bar and hotel owners, very few of them opted for closure.

Sanjay Kumar, assistant commissioner, Patna, excise and prohibition department, told The Telegraph: “Licences for 67 bars, including those in the hotels, were issued in 2012-13. The hike in the bar licence fee from the ongoing financial year has not had much adverse impact, as 52 bars applied for renewal and have been granted too. On the other hand, licences for five new bars in Patna have also been issued.”

Bar owners are not bothered about the surge in the fee, as they plan to pass on the burden to the customers eventually.

“The licence fee hike of over 300 per cent cannot be justified. However, we cannot close down our business because of such reasons. Most bar owners have renewed their licences. There are other reasons for closure of the few remaining bars. A part of the extra financial burden would definitely be transferred to the customers through rise in liquor prices but it would take a couple of months,” said Anurag Singh, the owner of Kapil’s Eleven.

Other bar owners, too, said they were not increasing the prices of liquor immediately. “Though the hike in bar licence fee to Rs 16 lakh is unreasonable, we still haven’t increased the prices of liquor being served in our bar. However, our profit margins have shrunk drastically,” said the owner of a renowned bar in the city.

“I am used to sit with my friends at my favourite bar usually on Saturdays but the bar people have lately told me that the price of liquor would rise in a couple of weeks. In such case, I would prefer to sit at some friend’s place or my own,” said Pratyush Kumar, a resident of Patel Nagar.

Foreign Liquor Association, Patna, on the other hand, believe that the on-shops would be the only gainer from the exorbitant hike in the bar licence fee.

“Such unreasonable hike in bar licence fee and relaxed criteria of the state government for setting up on-shops would lead to mushrooming of the latter. The only criterion to set up on-shops is a small space beside the shop, where people can drink. Such shops are dangerous for our culture and in terms of safety,” said Chandrashekhar, the secretary of Foreign Liquor Association, Patna.