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Canteen Stores Department (India)

From Wikipedia, the free encyclopedia
Indian military commissary chain

Canteen Stores Department
Company typeState-owned
IndustryRetail
Predecessors
  • Army Canteen Board
    (until 1927)
  • Canteen Contractors' Syndicate (CCS)
    (1927-42)
  • Directorate of Wholesale Trade and Indian Canteen Corps (1942-47)
Founded1 January 1948 (1948-01-01)
Headquarters
Adelphi Building,Mumbai,Maharashtra
,
India[1]
Area served
India
Key people
Maj. Gen. Satinder Singh (SM),
(Chairman, Board of Administration & General Manager)
OwnerMinistry of Defence
Websitecsdindia.gov.in

TheCanteen Stores Department, (CSD), is a solely owned Government of India Enterprise underMinistry of Defence and has its depot in all major military bases operated by theIndian Armed Forces.

CSD are the most profitable retail chain in India, ahead ofFuture &Reliance Retail[2] and sell a wide variety of products like household provisions, kitchen appliances, alcoholic drinks, cars, and sports equipment. Though originally meant exclusively for active and retired members of the Armed Forces personnel (defined as troops), it is slowly and steadily being expanded to include GREF, NCC Units at Group HQ level, TA units, CDA's staff,Indian Ordnance Factories, Embarkation HQs, civilians paid from defence estimates, civilians paid out of civil estimates, and Paramilitary forces under operational/administrative control of the Army civilian government employees. Generally, these goods are procured by CSD in bulk and sold at concessional rates (without taxes), compared with retail prices. CSD prices are low as the goods sold are exempt from taxes.

The development of these practices has always kept the objective of the organization in view. The department procures consumer goods and consumer-durable products in bulk directly from suppliers and positions them at 33 Area Depots (acting as wholesale depots), spread all over the country, for meeting the requirements of over 3500 URCs, which function as retail outlets. Many of the URCs are located in remote/inaccessible parts of the country.[3]

History

[edit]

The Canteen Stores Department traces its origins to theBritish Raj, when the Army Canteen Board was established in India as an offshoot of the British Navy and Army Canteen Board. Although the Navy and Army Canteen Board was abolished in the UK in 1922 and was replaced by theNavy, Army and Air Force Institutes (NAAFI), its counterpart in India continued to function until 1927. The Army Canteen Board in India was established mainly to provide canteen facilities to British troops in India through grocery shops and bars run bycanteen contractors.[4]

The Army Canteen Board was liquidated in 1927 and replaced by the Canteen Contractors' Syndicate (CCS). It was floated in the form of a limited company, under government control, with its registration office atKarachi (present-day Pakistan). This company started off with a paid-up capital of6 lakh (equivalent to13 crore or US$1.5 million in 2023), and the shareholding was confined to the canteen contractors. The CCS functioned with reasonable efficiency until the commencement of World War II. However, after the heavy buildup of the British troops in India, the CCS could no longer cope with the situation. Therefore, on 1 July 1942, the Government of India made use of the specific provision in Services (India) under the Directorate of Wholesale Trade and Indian Canteen Corps to handle the retail trade in operational areas. Canteen suppliers poured in from abroad, and the organization functioned extremely well during the War. By 31 March 1946, it was not only able to pay back to the government the assignments of funds made available to it but could also function on its own trading capital. However, with the end of the war and the homeward movement of the British troops, the import facilities dwindled, and the turnover of the organization shrank. With the pulling out of troops from the operational areas, the Indian Canteen Corps was disbanded, and the staff retrenched.[4]

This was closely followed by the independence andpartition of the country, and the wartime organization gave birth to two Canteen Stores Departments, i.e., CSD (India) andCSD (Pakistan). The Pakistani CSD would later bifurcate further to formCSD (Bangladesh), after the independence of Bangladesh. The retail trade, however, reverted to the contractors. A board of Liquidation was formed to oversee the liquidation of assets of the wartime organization, which ceased to function on 31 December 1947. The Canteen Stores Department, the present organization, thus took birth on 1 January 1948 with a working capital of48 lakh (equivalent to54 crore or US$6.4 million in 2023) assigned to it from assets of its predecessor wartime organization. The Government of India had granted the organization a life of three years on an experimental basis. The situation was reviewed in 1950, and the department was accepted as a government undertaking on a permanent basis.[4]

CSD AFD Portal

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on 8 Jan 2021, Defence MinisterRajnath Singh launched the Online Portal for CSD Canteen purchases. The platform allows 45lakh beneficiaries, including armed forces personnel and retirees, to buy AFD-I(Against Firm Demand) items like Cars, Motorcycles, and electronic Appliances online from home. Singh praised the project's completion, aligning it with theDigital India vision. The ceremony, held inNew Delhi, featured live streaming of deliveries in multiple cities, ensuring a faster and hassle-free experience. Notable attendees included Chief of Defence StaffGeneral Bipin Rawat and other military leaders. The portal marks a significant step in providing efficient access to AFD-I items.

CSD entitlemens

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Liquor Policy

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Serving and retired personnel have monthly liquor quotas via CSD canteens. The number of bottles that can be issued varies by rank.[5]

Category
(Army,Air Force)
Max Bottles issuable per month
(Serving personnel)
Max Bottles issuable per month
(Ex-servicemen)
Commissioned officers1010
Junior commissioned officers (JCO)76
Other Ranks (OR)54

Note: A standard bottle typically refers to 750 mL of alcoholic beverage.

Category
(Indian Navy)
Max Bottles issuable per month
(Serving personnel)
Max Bottles issuable per month
(Ex-servicemen)
Commissioned officers2010
Junior commissioned officers (JCO)106
Other Ranks (OR)74

Note: A standard bottle typically refers to 750 mL of hard liquor or three beer bottles of 650 mL.

Price and Subsidies

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  • Liquor in armed forces canteens is sold at subsidized rates compared to the civil market, due to complete or partial tax exemption depending on the state.
  • Some states (eg,Karnataka) are considering raises in excise duty for liquor sold in military canteens to reduce discrepancy between civilian and military rates.[6]

Legal restrictions and irregularities

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  • In states with liquor prohibition i.e.,Bihar,Gujarat,Mizoram,Nagaland, and certain parts ofMadhya Pradesh; army personnel areadvised not to carry liquor while transiting through or while deployed into the state — even if they hold authorisation letters.[7]
  • However, naval personnel operating at sea or in coastal waters of the state arenot subject to such restrictions, as they fall underAdmiralty law withinExclusive Economic Zone (EEZ) rather than local, state, or central liquor prohibition laws.
  • Cantonment areas, air force stations, andnaval bases are considered to have different legal status, hence depending on the location,n they are possibly completely exempt from local or federal laws.[8]

Quota misuse

[edit]

There have been past instances where units or naval warships overdrew liquor, more than the prescribed limit. These discrepancies are flagged in the annual audit report of the armed forces.[9]

Restrictions

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  • There is a cap on premium liquor that can be availed by armed forces personnel, i.e, only 50% of the monthly quota can be utilised for premium brands; the remaining liquor must be of regular brands.[10]

Navy Liquor Policy

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Sailors and naval officers posted onboard ships and submarines, or in forward sea-going, often get extra liquor entitlements if continuously deployed at sea or on remote islands. This is meant to compensate for long periods away from the mainland and socializing through recreation.[11]

  • Foreign deployment: While on international deployments, naval personnel are authorised to procure duty-free liquor from approved naval establishments abroad.
  • Mess supplies: Officers' mess and sailors' canteens often stock additional alcohol for such purposes and official functions, which does not count against the quota system.

Automobile entitlements

[edit]

Personnel from the Indian Armed Forces can buy automobiles using a provision called AFD (Against Firm Demand), in this provision cars are classified asAFD-1 items, and motorcycles are classified asother AFD-1 items.

Car entitlement(s)

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Earlier cars available for purchase were limited by rules regarding engine capacity, i.e. 2,500 cc for officers and 1,400 cc for lower ranks; and the car price (excluding taxes) was capped at12 lakh (equivalent to15 lakh or US$18,000 in 2023), along with the minimum service requirement of 5 years before being eligible for the purchase of a four-wheeler.[12][13]

However, newer policies have completely removed the engine capacity limit and increased the price limit to the maximum of25lakh (US$30,000), and have allowed greater flexibility for JCO/OR(s) in the number of cars that can pe purchased across their lifetime.[14][15]

Pay levelCategoryMax car price
(Combustion)
Max car price
(EV)
Purchase frequencyRegulationsLifetime limit
10 to 18Commissioned officers20 lakh (US$24,000)25 lakh (US$30,000)Once every 8 years
11 to 17Defence civilians (officers)20 lakh (US$24,000)25 lakh (US$30,000)Once every 8 years
6 to 9Junior Commissioned Officers (JCO)10 lakh (US$12,000)15 lakh (US$18,000)Once every 8 yearsFirst car to be purchased as OR, second after promotion to JCO, and third after retirementMaximum of 5 cars
3 to 5Other ranks (OR)8 lakh (US$9,500)13 lakh (US$15,000)15 years; for the second carFirst car can be purchased after 5 years of service, and the second post-retirementMaximum of 2 cars
Note:
  • The value mentioned is excluding taxes (GST, etc.), so the actual purchase amount will differ.
  • Given the high automobile taxation in India, this provision enables military officers and defence civilians (Pay level 10+) to purchase vehicles with an on-road price up to34 lakh (US$40,000) and20 lakh (US$24,000) by JCOs.
  • Next of Kin (NoK) and widows can utilise the quota not used by the deceased personnel, if certain conditions are met.

Motorcycle entitlement(s)

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  • All personnel serving and retired from the Armed Forces, including defence civilians employees, their widows, and Next of Kin (NoK) are eligible to purchase two-wheelers from CSD.[16]
  • The gap between the purchase of two-wheelers shall be a minimum of four years from the date of purchase.[17]
  • The motorcycle purchased must be used forpersonal use, along with the undertaking signed that it shall not be sold in the civilian market until three years from the date of purchase.[18]
  • Only selected models from popular manufacturers (eg.Royal Enfield,Bajaj,Jawa,TVS,Hero,Yamaha,Honda, etc.) are available through CSD, based on existing dealership partnerships. Not all brands (eg.Triumph,Harley-Davidson,Indian, etc.) or variants are listed under the CSD scheme.[19]

See also

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References

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  1. ^"CONTACT US".csdindia.gov.in. Retrieved4 October 2016.
  2. ^Tyagi, Neha; Malviya, Sagar (17 August 2016)."Army canteens most profitable retail chain in India, ahead of Future & Reliance Retail".The Economic Times. Retrieved17 August 2016.
  3. ^Retailing Management: Text & Cases - Pradhan - Google Books. Tata McGraw-Hill Education. 1 September 2006.ISBN 9781259051098. Retrieved17 August 2016.
  4. ^abc"History:ORIGIN OF CSD ORGANISATION".csdindia.gov.in. Archived fromthe original on 14 March 2014. Retrieved4 October 2016.
  5. ^"Know Your Latest CSD Purchase Entitlement For Liquor Grocery And AFD Items - Ex-Servicemen Info Club". 12 September 2024. Retrieved13 September 2025.
  6. ^"Liquor prices set to rise at Karnataka army canteens".Bangalore Mirror. Retrieved13 September 2025.
  7. ^"Don't carry liquor while travelling in dry Bihar, Army warns personnel".The Indian Express. 26 August 2016. Retrieved13 September 2025.
  8. ^"Don't Carry Liquor In Bihar, Indian Army Warns Soldiers". 7 September 2016. Retrieved13 September 2025.
  9. ^Bhattacharya, Pinaki (14 August 2010)."Army canteens caught in quota booze racket".India Today. Retrieved13 September 2025.
  10. ^"Army cap on premium brands sold under 'liquor quota'".The Times of India. 17 May 2018.ISSN 0971-8257. Retrieved13 September 2025.
  11. ^"Issue of full Liquor Quota on producing Smart Card from any Canteen Across Country: Army HQ Order | StaffNews". 26 April 2022. Retrieved13 September 2025.
  12. ^"Military Personnel Can No Longer Buy Fortuner's, Safari's, Jeep Compass's, 4-Wheel Drives From CSD Canteens".Indian Defence News. 12 July 2019. Retrieved14 September 2025.
  13. ^"Now no cars above Rs 12 lakh for Indian defence officers at military canteens".India Today. 30 May 2019. Retrieved14 September 2025.
  14. ^"Army Relaxes Cap On Purchase of Four Wheelers Through Canteen Stores Department (CSD)".Indian Defence News. 18 November 2020. Retrieved14 September 2025.
  15. ^"CSD Updates 2025: Enhanced Benefits For Armed Forces Personnel And Families - Ex-Servicemen Info Club". 27 July 2025. Retrieved14 September 2025.
  16. ^"CSD Purchase Eligibility and Guidelines with Application Form – PDF Download".csdrates.in. Retrieved14 September 2025.
  17. ^"How to Buy Bike Through CSD Canteen: A Simple Step-by-Step Guide for Defence Personnel". 13 January 2025. Retrieved14 September 2025.
  18. ^"Entitlement & Guidelines for purchase of Four/Two wheelers & other AFT-I Items from CSD Canteen | StaffNews". 24 June 2015. Retrieved14 September 2025.
  19. ^"CSD Bike Price List: Latest rates and models available".foujiadda.in. Retrieved14 September 2025.

External links

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