The Andhra Pradesh government has announced a new liquor policy that permits private retailers to sell spirits, similar to the model adopted by Haryana and other states, with the expectation of generating Rs 5,500 crore in revenue. In a comprehensive revision of its excise policy, the state will facilitate retail sales of liquor through 3,736 licensed private shops across Andhra Pradesh, drawing on best practices from other states.
The new policy will take effect from October 12, 2024, as per the notification dated September 30, 2024. According to the notification, permission to sell Indian-Made Foreign Liquor (IMFL) and Foreign Liquor (FL) will be granted to private persons or entities through a selection process.
The license period for selling Indian-Made Foreign Liquor (IMFL) and Foreign Liquor (FL) at the shops will be from October 12, 2024, to September 30, 2026. Of the total shops to be licensed during this period, 3,396 will fall under the open category, while 340 shops will be specifically allocated to the 'Geetha Kulalu' community, a toddy tapping group, to empower them and promote equity and social justice.
The selection process for granting licenses will involve a draw of lots, allowing applicants to apply for multiple shops without restrictions on the number of licenses held. Each applicant must pay a non-refundable fee of Rs 2 lakh per shop.
According to the notification, the retail excise tax (RET) will range from Rs 50 lakh for localities with populations of 10,000 to ₹85 lakh per year for municipalities or municipal corporations with populations exceeding 500,000 in fiscal year 2024-2025, with a 10% increase planned for 2025-2026. This initiative is expected to generate Rs 5,500 crore for the state government.
For the premium stores, the notification said, "In order to provide an enhanced and high-end retail experience within the state of Andhra Pradesh, a total of 12 Premium Store Licenses shall be granted as a separate category." These premium stores shall be strategically located across major municipal corporation cities namely Vijayawada, Visakhapatnam, Rajamahendravaram, Kakinada, Guntur, Nellore, Kurnool, Kadapa, Anantapur or any other city as notified by the state government from time to time, it added.