Residents and visitors in Lucknow may soon have to dig deeper into their pockets for services like dining out, hotel stays, and private medical care. The Lucknow Municipal Corporation (LMC) has put forward a proposal to significantly increase the licence fees for various commercial establishments, a move that is likely to make these services more expensive for consumers.
Sharp Increase in Fees Proposed
The revised fee structure, which is slated to come into effect from April 1, 2026, proposes a steep rise in charges. According to the proposal, licence fees for hospitals and nursing homes could see a twofold increase. In a more dramatic shift, the fees for hotels and restaurants might shoot up by as much as five times their current rates.
This proposal was given the initial green light during the House meeting held in September 2025. The LMC has now issued a public notification, inviting objections and suggestions from citizens before finalising the new rates. The framework for this hike is based on the Municipal Corporation Bye-laws of 2003.
Scope and Current Compliance
The licence fee hike will impact a wide range of businesses operating within the city's municipal limits. Currently, it is mandatory for establishments like hotels, restaurants, guesthouses, clinics, nursing homes, and liquor shops to obtain these permits. The charges vary depending on the size and nature of the business.
Official data reveals the scale of the sector in Lucknow. The city is home to approximately 1,800 nursing homes, hospitals, clinics, and diagnostic centres. Additionally, there are close to 800 liquor outlets, which include shops selling English and country liquor, beer bars, and model shops. In total, over 2,000 establishments are required to renew or obtain these licences every year.
However, LMC officials have admitted a significant compliance gap, stating that fewer than half of these businesses currently hold valid licences.
Broader Impact and Deadlines
The proposed hike is not limited to hotels and hospitals. Other categories are also in line for increased fees. Pathology labs, along with liquor and beer shops, are set to see their licence fees rise, with some facing up to a fivefold increase.
The civic body has also clarified the renewal schedule and penalties. Establishments must renew or obtain their licences between April 1 and June 30 of each financial year. For those who fail to meet this deadline, late fees will be applicable starting from August.
This move by the LMC is expected to boost municipal revenue but will inevitably lead to higher operational costs for businesses. These increased costs are likely to be passed on to consumers, making everyday services like healthcare, hospitality, and dining more expensive in the state capital from the 2026-27 financial year onwards.
