(Business-standard) - Imposition of special excise duty of Rs 300 per litre by Maharashtra, Karnataka is affecting expansion.The dual excise policy adopted by states like Maharashtra and Karnataka is hampering the growth of the grape wine industry. Both states have imposed a special excise duty of Rs 300 per litre for wine manufacturers coming from outside the respective states which has impacted the operations of wineries that want to expand market in these states. Maharashtra was the first state to impose the special excise duty to protect the local industry and Karnataka followed later in 2008. Both states put together account for a large portion of wine industry, which is estimated at about 16 million litres per annum. After Karnataka government imposed the special duty, the wine industry has grown manifold from two wineries to 14 with a combined installed capacity touching close to three million litres, said Vandita Sharman, principal secretary, department of horticulture, government of Karnataka.