The Assam cabinet on Friday increased the price of Indian-made foreign liquor (IMFL) by 25 per cent and amended the factory and labour acts to attract companies to set up their units in the state.

After the meeting, industry minister Chandra Mohan Patowary told reporters that liquor price was increased with an aim to earn Rs 1,000 crore additionally in a year.

The Covid-19-induced lockdown has hit the economy hard, forcing the Assam government to announce a slew of austerity measures, including a stop to all incentives to industries.

Liquor is one of the major sources of revenue for the state government. After the reopening of the liquor shops, the state government had earned Rs 25 crore in revenue from sale of liquor worth Rs 75 crore in just three days.

A source in the excise department said that on average, the monthly sale of liquor in the state was between 150 crore and Rs 250 crore. Since March 2016 to March 2002, the estimated profit was Rs 7,716 crore from an average sale of Rs 3,000 crore per year.

The cabinet allowed introduction of fixed term employment in industries, increase in minimum number of workers for implementation of the Factories Act from 10 to 20 (factories run with power) and 20 to 40 (without power). “Now, a labour inspector will not be allowed to inspect a factory run on electricity, having less than 20 workers, and 40 in those without power,” he said.

It also approved increase in minimum number of workers for implementation of Contract Labour Act from 20 to 50 and increase in shift hours from eight to 12 during the Covid-19 period.

Patowary said, while going to amend these laws, the cabinet had kept in mind its effort to woo factories to set up units in the state, who will reportedly shift base from China to India. He said the Assam government had already written to the Centre proposing itself as a convenient destination for such factories.

The cabinet decided that from now on the tea gardens would be allowed to operate with full capacity, if they maintain social distancing norms. The cabinet also passed the Assam Agriculture Produce and Livestock Marketing (Promotion Facilitation) Ordinance, 2020, repealed the Assam Agriculture Produce Marketing Act, 1972, and released fund for salaries of Assam Agriculture Marketing Board employees.

Additional reporting by Mohsin Khaiyam