Tamil Nadu Prohibition and Excise Minister Vignesh on Saturday, 6 June categorically ruled out any privatisation of the state-run Tamil Nadu State Marketing Corporation (TASMAC), while vigorously defending the Vijay government's decision to shut 717 liquor outlets as part of a phased strategy to reduce the state's dependence on alcohol revenue. The minister's remarks came in response to mounting opposition criticism over both the closures and speculation about TASMAC's future ownership structure.

No Privatisation on the Table

Addressing reporters, Minister Vignesh dismissed allegations that the government intended to hand over TASMAC operations to private players. 'There is no proposal to privatise TASMAC,' he stated, reaffirming that the administration would continue regulating liquor sales through the state-run network. The clarification comes amid persistent opposition claims that the closures were a precursor to privatisation — an assertion the minister flatly rejected.

Why These 717 Shops Were Different

Vignesh drew a pointed distinction between the current government's closures and those undertaken by previous administrations. He argued that earlier regimes had primarily shut down underperforming outlets and shops without attached bars, resulting in negligible revenue loss. By contrast, he said, the 717 TASMAC outlets shuttered by the present government were active, revenue-generating shops. 'Some of these shops recorded daily sales of up to ₹25 lakh, while even the lowest-performing among them generated around ₹5 lakh a day,' the minister said. The cumulative annual revenue impact of the closures is estimated at between ₹7,000 crore and ₹8,000 crore, according to the minister — a figure that underscores the political weight of the decision.

A Policy Commitment Despite Revenue Hit

The closure of 717 liquor shops was among the first major policy moves announced by the Vijay government after assuming office, framed as the opening step in a broader, phased plan to reduce the number of outlets statewide and address public concerns over alcohol consumption and its social consequences. Despite the significant revenue implications, Vignesh said the government remained firm on its policy objectives, signalling that financial considerations would not override the administration's stated social goals.

Allegations Against Previous Administration

The minister also went on the offensive against the previous government, alleging large-scale irregularities in TASMAC's operations. He claimed that the administration had already uncovered significant issues and hinted that further revelations could emerge. 'We have been in office for only about 20 days and are proceeding cautiously. But if necessary, we will place all the facts before the public. Those responsible for wrongdoing should remain silent rather than attempt to mislead people,' Vignesh said. The government has not yet disclosed the specifics of the alleged irregularities.

What Comes Next

Minister Vignesh indicated that the government would continue reviewing TASMAC's operations, with further action against additional outlets possible based on revenue patterns, compliance issues, and policy priorities. The review, still in its early stages given the government's short tenure, is expected to shape Tamil Nadu's liquor policy trajectory in the months ahead.