Andhra Pradesh is preparing to transition away from government-operated liquor shops as the liquor policy introduced by the previous YSRCP government is coming to an end. Starting October 1st, the state will implement a new liquor policy that will see the return of private liquor shops, replacing the government-run outlets. This shift marks a significant change in the state’s approach to liquor sales and regulation.
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The Excise Department has been working on the new policy, drawing inspiration from the liquor policies of six other states, with a particular focus on the model implemented in Telangana. The Telangana Liquor Policy, which was introduced in 2023, has been noted for its success in generating significant revenue.
The Andhra Pradesh government is reportedly favoring a similar approach, anticipating substantial income from the application fees for private liquor shop licenses. Officials of the department studied the liquor policies of six states and submitted reports to the government recently. It is known that they have come to the opinion that the Telangana style policy is the best.
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In Telangana, the liquor policy brought in an income of ₹2,628 crore under the application fee. Andhra Pradesh officials estimate that a similar policy could generate around ₹2,000 crores in revenue through application fees alone.
The application fee for a liquor shop license in the new policy is expected to be set at ₹2 lakhs (non-refundable). With an average of 40 applications per shop, the state could see a significant boost in revenue.
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Additionally, the policy includes a provision to allocate 10% of the total shops—approximately 300—to the Traditional Geetha workers community. This move aims to provide opportunities for this community, although the revenue from these shops may be lower due to fewer applications.
The government is expected to finalize and announce the new liquor policy within the next week to ten days. The current government-run liquor shops will cease operations by the end of September, with the new policy for private liquor shops taking effect from October 1st.
The Excise Department is also preparing a schedule to complete the process of receiving, examining, and conducting a lottery for the applications within 20 days, ensuring a smooth transition to the new system.
