Maharashtra is home to several scenic dams such as Bhushi Dam, Koyna Dam, and Jayakwadi Dam. Over the years, these spots have evolved into popular tourist destinations, with guesthouses, campsites, and restaurants springing up around their premises. However, just a few years ago, if you had planned to celebrate with your friends the ‘unsobered’ way, it wouldn’t have been possible. Now, thanks to a new government resolution (GR), serving and consuming alcohol is officially permitted in areas near the backwaters of these dams. Here’s all that you need to know about this new GR issued on October 8, 2025.
The Maharashtra government has amended a five-year-old policy to curb illegal liquor sales and promote tourism in the dam backwater premises in the state. The Water Resources Department has released a new GR in this regard.
Maharashtra is blessed with more than 3,200 irrigation projects, including 138 major, 255 medium, and 2,862 minor irrigation projects. Most of these projects are located in scenic hilly areas with several rest houses, inspection bungalows, and staff quarters located nearby. However, most of these properties remain unused and need frequent maintenance due to the lack of manpower.
To promote commercial use and preservation of these properties, the Water Resources Department had allowed the development of land and premises near water reservoirs and irrigation projects effective from June 17, 2019. The department allowed the development of land and premises near these projects under a public-private partnership (PPP) or build-operate-transfer (BOT) models.
However, the 2019 GR had a clause that barred the sale and consumption of liquor in these premises, allowing contract termination in the case of violation.
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The new GR issued on October 8, 2025, has removed the five-year-old restriction on the sale and consumption of alcohol within the premises of dam backwaters. Officials have stated that the lease period which was earlier limited to 10 or 30 years, can now be extended up to 49 years.
This move aims to curb illegal liquor sales in these premises by officially permitting the sale and consumption of alcohol. This is to curb down the rise of unauthorized stalls and shanties around dam backwater premises, which can in turn pose a threat to dam security.
The department can bring in hospitality activities associated with sale and consumption of alcohol such as new restaurants. This way, the new GR will ensure compliance with law, promote tourism, and generate employment for locals.
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The new GR has been issued to promote tourism and boost economic activities in the premises of dam backwaters where several guesthouses and staff quarters are in need of maintenance. With the new GR taking shape, tourist influx will likely see a rise, in turning leading to not just the maintenance of these properties but also to a boost in the tourist and economic activities.