The Andhra Pradesh state government has unveiled a new liquor policy with a two-year timeline, effective from October 12, 2023 to September 30, 2026. A midnight notification issued by the Excise Department outlined the details, including licenses for 3,396 retail liquor shops.
Key highlights of the policy include:
- Application Process Begins: Applications for licenses will be accepted starting from October 3, with a non-refundable fee of Rs. 2 lakhs per application. Applicants can submit their forms either online or offline, and there is no limit to the number of applications a single person can submit.
- Lottery for Licensing: Licenses will be awarded through a lottery system, under the supervision of the District Collectors. The lottery will take place on October 11, with new liquor shops opening on October 12.
- License Fees: The license fee ranges between Rs. 50 lakh to Rs. 85 lakh, depending on the population of the area. These fees will increase by 10% in the second year. Payments can be made in six installments per year, and licensees are entitled to a 20% margin on sales.
Expansion and Premium Stores
In addition to the standard 3,396 shops, 12 premium stores will be opened in major cities such as Vijayawada, Visakhapatnam, Rajamahendravaram, Guntur, and Kakinada. These stores will have a five-year tenure, and the license fee for each is set at Rs. 1 crore per year.
Affordable Liquor Prices
The policy also introduces more affordable options, including a quart of liquor for Rs. 99. The number of taxes on liquor has been reduced from 10 to 6, with the introduction of a new Drug Control Cess at 2% on landed cost. The state estimates annual revenue of Rs. 90 crore to Rs. 100 crore from this cess, which will be allocated toward combating drug abuse, establishing counseling centers, and supporting an upcoming anti-narcotics task force.
Transition to Private Sector
An important shift in the policy is the state’s decision to return the retail liquor trade to the private sector. A new ordinance amending the Andhra Pradesh Regulation of Trade in Indian Made Foreign Liquor and Foreign Liquor Act was issued, allowing private operators to once again manage liquor retail, a role previously held by the AP State Beverages Corporation Limited (APSBCL).
Special Policy for Geetha Workers
As part of its election manifesto, the government has reserved 340 liquor shops for members of the Geetha worker community, which includes Gowda and Shettibalija castes. Specific allocations have been made for the Sondi caste in Srikakulam, Visakhapatnam, and Vizianagaram districts.
Prohibited Zones
Certain areas in Tirupati, including Via Bus Stand, Leelamahal Circle, Nandi Circle, and Srinivasam, have been designated as no-license zones, where liquor shops are prohibited.
Important Dates:
- Start of Application Acceptance: October 3, 10:00 AM
- Last Date for Applications: October 9
- Lottery and License Finalization: October 11
- New Shops to Open: October 12
This new policy aims to streamline the liquor trade while addressing affordability, regulation, and social welfare concerns.
