Chandigarh, Jan 31 (IANS): The Punjab Cabinet led by Chief Minister Amarinder Singh on Friday approved the new excise policy 2020-21, with continued focus on maintaining stability in the liquor trade while protecting the state's excise revenue.

Under the new policy, existing licensees, who attain 12 per cent excess revenue over the minimum guaranteed revenue (MGR), will be allowed renewal for the year 2020-21.

A target of Rs 6,250 crore has been fixed as against anticipated collection of Rs 5,676 crore of 2019-20, as per the new policy.

The excise revenue is expected to go up to Rs 5,676 crore in 2019-20 from Rs 5,150 crore in 2018-19, according to an official spokesperson.

In the new policy, the number of groups had been retained at last year's level of 756.

The MGR from retail vends during 2020-21is to be realized at Rs 4,850 crores, as against Rs 4,529.40 crores during 2019-20.

The MGR of each group or zone during 2020-21 has been increased by 8 per cent over 2019-20.

The government can offer renewal to the existing licensees if they pay 12 per cent excess revenue over the MGR fixed, for the year 2021-22, and the renewal fee will vary from 1 to 4 per cent, depending on the response of application in the previous year.