Andhra Pradesh Govt Plans To Open 12 Premium Liquor Shops In Select Cities

Vijayawada: Andhra Pradesh government has decided to finalise guidelines for allowing opening of 12 premium liquor shops in select cities across the State by charging Rs 1 crore per annum as retail excise fee per annum for five years with a provision to increase the amount by 10 per cent every year.

The shops, aimed at providing an upscale shopping experience with the availability of premium brands and beverages and accessories, will be spread over a minimum area of 4,000 square feet. The shops will come up in Visakhapatnam, Vijayawada, Rajamahendravaram, Kakinada, Guntur, Kurnool, Kadapa, Anantapur and other places. Excise Minister Kollu Ravindra, who headed the Cabinet Sub-Committee, said the guidelines for allotment, operation and regulation of these shops at strategically located places will be notified later.

The State government announced the New Excise Policy reviving private ownership of retail shops after a gap of five years. The gazette notification was issued on September 30. There is also provision to the retail shops to upgrade into model stores by paying Rs 5 lakh additionally. They will be authorised to sell liquor accessories.

The revamped policy which was finalised after clearance from the Cabinet and the Governor, for opening 3,736 retail outlets with a 10 per cent reservation for toddy-tappers will be in force from October 12, 2024 to September 30, 2026. A non-refundable fee of Rs 2 lakh will be collected from the applicants with no restriction on the number of applications to be submitted by them for allotment by lottery.

Ravindra said their target was to realise revenue of Rs 5,500 crore, to provide liquor by premium brands unlike the erstwhile YSRCP government and launch a campaign to create awareness on ill-effects of alcohol consumption. Chief Minister N Chandrababu Naidu at the time of a White Paper on excise policy followed during 2019-24 alleged that due to promotion of certain inferior quality brands and the decision to hand over liquor shop management to the government, had caused a revenue loss of Rs 3,736 crore to the government.

The licence fee has been fixed in four slabs depending on location of the shop with a licence fee of Rs 50 lakh to Rs 85 per annum. The licence-holder has promised a margin of 20 per cent on the issue price. The tax heads have been reduced from 10 to six. The shops will be allowed to operate from 10 am to 10 pm with a strict provision to function under CCTV surveillance and transportation of consignments in GPS-enabled vehicles for ensuring transparency.

The new excise policy, the government said was suggested after sending officials to study the existing policies in Telangana, Uttar Pradesh, Karnataka, Tamil Nadu, Kerala and Rajasthan.