Andhra Pradesh Government’s New Liquor Policy Generates Massive Revenue Amid License Lottery
The Andhra Pradesh government has taken significant steps in its newly revised liquor policy by calling for tenders for new liquor outlet licenses. This initiative has seen an overwhelming response, with nearly 90,000 non-refundable applications submitted as of October 13. The lottery process to select the successful applicants took place on October 14, marking a critical milestone in the implementation of this policy.
The substantial interest in the licenses has already yielded considerable revenue for the state, with the government earning approximately Rs 1,800 crore from the application fees alone, each costing Rs 2 lakh. Following the lottery, winners will be required to pay licensing fees ranging from Rs 50 lakh to Rs 85 lakh, depending on the outlet’s location, payable in six installments.
Overall, the Andhra Pradesh government expects to generate a significant annual revenue of Rs 2,084 crore solely from liquor licenses. The first installment of these licensing fees is due on Tuesday, with the government anticipating to collect Rs 335 crore from this initial payment—an important boost for a state facing fiscal challenges.
In contrast to the previous administration’s cash-only policy, the new regime introduced by the NDA government mandates online payments to enhance transparency and monitoring of liquor sales. This shift is projected to result in an estimated Rs 17,000 crore in revenue from liquor sales over the next six months.
As the new policy unfolds, it represents a strategic effort by the Andhra Pradesh government to bolster its financial resources while regulating the liquor trade more effectively. The upcoming announcements regarding the lottery winners will be closely watched, as they set the stage for the state’s economic recovery through this lucrative sector.
