How to Get a Microbrewery License in Jharkhand: Complete Excise Policy Guide
Learn how to open a microbrewery in Jharkhand with this complete guide covering licence fees, eligibility, approvals, production limits, and excise regulations.
How to Get a Microbrewery License in Jharkhand: Complete Excise Policy Guide
Jharkhand is among the few Indian states with a dedicated legal framework for establishing microbreweries. The Jharkhand Excise (Micro Brewery) Rules, 2017 allow eligible bars and clubs to manufacture and serve fresh draught beer within their licensed premises, creating opportunities for restaurants, hotels, and hospitality businesses to enter the growing craft beer market.
If you are planning to open a brewpub or install a microbrewery in Jharkhand, understanding the licensing process before investing in equipment or infrastructure can help avoid costly delays and compliance issues.
What is a Microbrewery?
Under the Jharkhand Excise Rules, a microbrewery is a small brewery established within the premises of a licensed bar or club where fresh draught beer is brewed and served directly to customers. The policy allows breweries to produce different beer styles such as lagers, ales, porters, stouts, and fruit beers.
The installed production capacity must not exceed 1,000 litres per day.
Who Can Apply for a Microbrewery Licence?
A microbrewery licence is available only to businesses that already hold a valid Bar or Club Licence under the Jharkhand Excise Act.
Applications can be submitted by:
- Individuals
- Partnership firms
- Companies
- Societies
The application is submitted to the Excise Commissioner through the Deputy Commissioner of the district along with details of the proposed brewery, installed capacity, and prescribed application fee.
Approvals Required
Before the licence can be granted, applicants must obtain clearances from the relevant authorities.
These include:
- Pollution Control Board
- Fire Safety Department
- Water testing certificate from the competent authority
These approvals help ensure that the brewery meets environmental, safety, and water quality standards before commencing production.
Who Cannot Apply?
The policy specifies that the following persons are not eligible for a microbrewery licence:
- Persons below 21 years of age
- Individuals convicted under Excise, Customs, or Narcotic laws
- Habitual offenders
- Defaulters in payment of excise revenue
Applicants must also satisfy all eligibility conditions prescribed by the Excise Department.
Annual Licence Fee
The annual licence fee for a microbrewery in Jharkhand is ₹1.5 lakh per financial year.
If the licence is surrendered before the end of the licence period, the licence fee already paid is forfeited by the Government.
Excise Duty
Beer produced in a microbrewery attracts the same excise duty applicable to bottled or canned beer in the state.
The licence holder is required to pay duty based on the approved production capacity. Brewing is not permitted on officially declared dry days, and no duty is charged for those days.
Quality Control Requirements
Maintaining beer quality is a mandatory requirement under the policy.
Every microbrewery must:
- Employ a qualified chemist to supervise production.
- Test the quality of raw materials.
- Certify every batch before it is released for sale.
- Send beer samples to a laboratory every month for analysis.
- Display laboratory reports at the brewery premises.
The brewery must also maintain records of pH, temperature, and gravity throughout the brewing process for inspection by excise authorities.
Alcohol Content
Beer produced in the microbrewery should generally not exceed 8% Alcohol by Volume (ABV).
If the alcohol content exceeds this limit, excise duty may be charged according to the applicable regulations.
Where Can the Beer Be Sold?
Fresh beer produced in a microbrewery can only be served within the licensed premises.
The policy does not permit retail sale or takeaway of beer produced in the microbrewery. This makes the licence suitable for brewpubs, restaurants, clubs, and hotels that serve customers on-site.
Record Keeping and Compliance
Every licence holder is required to maintain separate records for:
- Daily beer production
- Beer sales
- Beer stock
- Brewing process parameters
The brewery is also subject to inspection by Excise Officers, who may verify records, inspect equipment, and collect beer samples for testing.
Important Highlights of the Jharkhand Microbrewery Policy
Before investing in a brewery, remember these key points:
- Maximum installed production capacity: 1,000 litres per day
- Annual licence fee: ₹1.5 lakh
- Beer can only be served within the licensed premises
- Monthly laboratory testing is mandatory
- Qualified chemist supervision is compulsory
- Maximum recommended alcohol content: 8% ABV
- Pollution Control, Fire Safety, and Water Quality approvals are mandatory
How Six Row Brewing Can Help
Setting up a successful microbrewery requires careful planning beyond obtaining a licence.
At Six Row Brewing, we assist breweries with:
- Brewery feasibility studies
- Equipment selection
- Brewery layout planning
- Utility design
- Recipe development
- Standard Operating Procedures (SOPs)
- Brewery commissioning
- Staff training
- Draft beer dispensing system design
- Operational support
Our goal is to help entrepreneurs build efficient, compliant, and profitable breweries across India.
Final Thoughts
The Jharkhand Excise (Micro Brewery) Rules, 2017 provide a clear framework for hospitality businesses interested in producing and serving fresh craft beer. By understanding the licensing process, infrastructure requirements, excise obligations, and quality standards before investing, entrepreneurs can establish a successful brewpub while remaining compliant with state regulations.