Bhubaneswar, April 13: The Odisha government has denotified the state highways as "urban roads" to skirt the Supreme Court's directive banning liquor sales within 500 metres of any highways.

Worried over the loss of excise revenue, the state government has resorted to this step.

A notification issued by the state government yesterday said: "All roads sections of the works department falling within the limits of municipal corporation, municipality, notified area council, sub-divisional headquarters. block headquarters and tehsil headquarters have been categorised as urban roads".

The works department manages the state highways and 1,168 liquor outlets out of 3,922 in the state have been shut down from April 1. Officials sources said that once the stretches were "redefined" as urban roads, the apex court's order would not be applicable.

Excise secretary Bishunupada Sethi said: "I have no idea about the new notification."

However, senior officials in the excise as well as the finance departments said renaming of the highways would help opening of the closed shops.

The state is expected to face loss of revenue from liquor sales Rs 1,100 crores. During 2016-17, the state had collected Rs 3,876 crores towards excise duty and VAT from liquor sales.

An excise department official said the state had closed 1,712 establishments abiding by the apex court's order. Subsequently, 554 shops were relocated (shifted beyond 500 metres from the highways). Of the 1,168 shops shutdown, 457 are off-shops, 205 restaurants, 60 hotels, 51 beer parlours, 74 country spirit shops, 320 outstilled shops 320 and one military canteen.

Works additional secretary B.K. Patnaik said: "The objective of renaming the roads is to give more attention to their condition. We will provide more funds for repair and renovation under the urban road scheme."

Asked whether the sudden move was aimed to help liquor shop owners, whose business had been adversely affected, he said: "I have no idea about it. The excise department will take a call on the issue (reopening of the shops)."

The state government, which is not in favour of complete prohibition of liquor, had announced a new excise policy last month. The policy aimed to increase the excise revenue. Under the new policy, which became effective from April 1, drought beer is made available in beer parlours, hotels, clubs and restaurants in six major cities - Bhubaneswar, Cuttack, Rourkela, Sambalpur, Puri and Berhampur.