Soon after taking office as the Chief Minister of Tamil Nadu, C. Joseph Vijay made a significant change in administration by announcing the closure of all 717 government-run liquor shops located throughout the state. In his first major act, the Chief Minister is sending a powerful message about the new government’s commitment to the people of Tamil Nadu, providing for social order, and increasing regulations regarding the sale of alcohol.
The State of Tamil Nadu operates all of its liquor outlets through TASMAC (Tamil Nadu State Marketing Corporation). According to the state government’s directive to TASMAC, all identified liquor shops are located within 500 metres of sensitive public places (such as places of worship, schools, universities, and bus stops).
Based upon a survey performed immediately following Vijay’s tenure, the state government discovered that all 717 identified TASMAC liquor shops were selling liquor outside of the 500-metre radius of sensitive public places. Therefore, the state has ordered that all identified TASMAC liquor shops be shut down within two weeks.
The breakdown of the closures includes:
- 276 shops near places of worship
- 186 shops near educational institutions
- 255 shops near bus stands
As of now, there are approximately 4,765 TASMAC retail shops in Tamil Nadu making up almost 15% of all liquor stores; Therefore, this will greatly influence the recent decision of the State’s Chief Minister.
According to State officials, this decision was made with “public welfare in mind,” particularly due to concerns of women, parents, commuters, and community organisations regarding the access to alcoholic beverages adjacent to large populations within their respective communities.
The Actions of Vijay Indicate a Change
The closure is considered to be a strategy within which the new Chief Minister will try to establish a separate governing identity for himself early on in his term. During his election campaign, Vijay and his party, Tamilaga Vettri Kazhagam (TVK), had stated an aggressive stance against alcoholism and drug addiction.
Political analysts state that this movement maintains Vijay’s commitment to the advancement of young people through social reform. Consequently, his Government has also launched programs designed to create drug task forces as well as protecting women since taking office.
Therefore, this decision is not just a matter of administrative orders but a definitive statement from the new Government that they will focus on what is best for the people rather than solely what will generate revenue.
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Public Reactions Mixed but Largely Positive
Responses to the announcement have been varied, with both the general populace and advocates giving it mixed reviews. Many people living in Tamil Nadu were pleased with the announcement—specifically the passing of legislation that orders the closure of liquor retailing establishments near schools and bus stops.
Cities including Trichy and Madurai have experienced nuisance behaviors including open drunkenness, harassment, theft, and public nuisance around the TASMAC that are located near various forms of mass transportation and religious institutions; women who commute regularly and parents of children attending school have repeatedly requested more stringent regulation of liquor availability at the above mentioned locations.
Social media users praised the decision as a “good first step” toward improving public safety in Tamil Nadu. Others feel that the ban on alcohol sales close to schools and bus stops will decrease disturbances and improve the overall quality of life for citizens living near those establishments.
However, some people doubt whether or not there will be any substantial positive change as a result of the ban on sales. There are those who have pointed out that many previous governments have made similar pledges to restrict alcohol availability, and some have expressed concern that overly aggressive restrictions may result in a significant rise in the use of illegal channels (including but not limited to illicit alcohol distribution and smuggling operations) to obtain liquor.
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The Financial Implications of this Ban on TASMAC Retail Locations
The government will incur significant losses as a result of the ban on alcohol sales, as TASMAC is one of the largest revenue-providing organizations in the State of Tamil Nadu, generating thousands of crores of rupees annually for the state.
Market analysts have suggested that approximately 717 liquor store closures will impact liquor sales revenues (although possibly only temporary). However, the government appears to be willing to incur financial losses to generate goodwill with the public and political base in exchange for political support and for the ability to “sell” these stores back into the market.
In addition, this order comes at a time when TASMAC is being scrutinized for alleged improprieties and as a result of an investigation involving the Enforcement Directorate regarding suspected money laundering associated with TASMAC’s activities.
Vijay’s Decision is Defining His New Leadership Role
In many respects, Vijay’s decision marks a new beginning as the new CM. Having made the successful transition from movie star to political leader, now he can be measured by his ability to implement the promises made during his campaign.
In addition, this measure to close even 717 liquor stores may be just the first step toward a much greater initiative for both alcohol regulation as well as public welfare in Tamil Nadu. The final impact of this decision will depend on how well the government (and society) takes the necessary steps to influence the successful implementation of this measure and how well the state government can balance the goals of providing public welfare services with the real economic conditions of the state.
