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As Haryana, UP steal Delhi's diners, city's restaurant lobby demands fewer govt restrictions to win them back

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The Delhi chapter of the National Restaurant Association of India (NRAI) met Chief Minister Rekha Gupta to push for urgent reforms in the city’s hospitality sector, citing long-standing regulatory barriers that continue to stunt industry growth, reported TOI.

Representing a sector worth Rs 42,000 crore in Delhi alone and employing over five lakh people across 1.2 lakh food outlets, the association pressed for changes that would revitalise the capital’s dining scene and boost the ease of doing business.

The delegation, led by NRAI Delhi head Sandeep Goyle and members Manpreet Singh, Rahul Singh, Goumtesh Singh, Dhruv Goyle, and Prakul Kumar, voiced concerns over high excise fees, outdated licensing processes, inconsistent policies on open-air service, and restricted hours.

According to the delegation, these issues are driving business to neighbouring states like Haryana and Uttar Pradesh. They also highlighted the lack of premium liquor availability and inefficiencies in the e-Abkari portal, said the report.

Among key demands were: a pro-rata excise fee model, multi-year licensing, extended restaurant operating hours till 3am, permission for terrace and open-area liquor service, and use of multiple dispensing counters.

NRAI also raised the issue of excessive licensing, fragmented regulations, and executive overreach in fire safety compliance, urging a transition to a single registration-based permit system with standardised five-year validity.

TOI further reported that the group criticised the uneven stance on open-area dining — allowed by the Municipal Corporation of Delhi, but restricted by the New Delhi Municipal Council — and called for consistent policy across zones.

CM Gupta reportedly welcomed the inputs and assured the delegation of her administration’s intent to collaborate with the industry. Goyle said Gupta showed interest in policy suggestions that could simultaneously boost the sector and state revenue.

With a new excise policy in the works, the industry remains hopeful that the government will incorporate NRAI’s recommendations to transform Delhi into a more vibrant and business-friendly food capital.





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