A meeting of the state cabinet here today also approved fixing the minimum age for drinking or purchasing beer at 21.
The government has also banned serving alcohol at all public functions and ceremonies.
The 25-year age limit on drinking, applicable in some other states including Delhi, is among the highest in the world, a senior official said.
Fine would be imposed for under-age drinking and there is a provision of more dry days every year. No liquor shop will be allowed within one kilometre of educational and social institutions, government offices, religious places and highways.
There is also a limit on bottles allowed per individual and a liquor shop or bar may be shut down if 25 per cent of the residents of a municipal ward demand its closure.
The measures come ahead of the passage of the state policy on de-addiction, which is being pursued by Shivajirao Moghe, Minister for Social Justice & De-addiction Activities.