Liquor license: Telangana state gets Rs 2639 Cr revenue from non refundable application fee

Telangana: The Telangana State government has generated a whopping amount of Rs 2,639 crores in the form of fees from 1,31,954 applications for retail liquor outlets.

This year’s numbers in licence applications to liquor shops for the next two years (2023-2025) are said to be at an all-time high after the formation of the Telangana State.

During the previous phase of licences issued two years ago, only 68,000 applications were received, generating Rs 1,370 crores.

Speaking to NewsMeter, the director of the Excise and Prohibition Department, Md Musharraf Ali Faruqui, said, “The response for the new liquor policy is said to be at an all-time high. The highest number of applications were received from Serilingampally, which is the IT corridor of Hyderabad, and the Shamshabad area, which has the airport and a lot of new areas emerging.”

AP tops in applications from neighbouring states

Apart from Telangana, applications for 2,620 retail liquor outlets in Telangana were received from Andhra Pradesh, Karnataka, Madhya Pradesh, and a few other states. Speculations are that this year there are more applications received from the neighbouring state Andhra Pradesh.

The application process began for retail liquor outlets in 33 districts on August 4 and closed by Friday midnight. With the total applications, the Telangana state government has received an income of Rs 2,639 crores in fees. And this money is non-refundable to those who don’t get the license. Licenses to liquor outlets will be drawn and granted on August 21. Those who get licenses would need to pay the first phase of excise tax on August 21-22. The new shops can be opened from December 1, 2023, and can continue till November 30, 2025.

Based on the potential, a person can give multiple applications and apply them in multiple areas within the family. According to the officials, multiple applications are a way to increase the chances of getting a license for one liquor shop.

Economic growth led to boom

Explaining the reasons for the increase in applications, Musharraf said, “Speculations in the market for more people coming into the liquor business is the economic growth seen in the state. Over the years, the consumption pattern has increased. The fundamental growing economic activity of the state, in terms of celebrations, hospitality and tourism, can be some of the reasons for the increase in demand for liquor business.”

As per the new liquor policy in Telangana, the license fee per annum is in the range of Rs 50 lakh to Rs 1.1 crore per annum, depending on the area’s population. Licences will be issued to 2,620 outlets across the state, out of which 786 are reserved for disadvantageous sections.

The rates are as follows:

In the state’s capital, there are 615 outlets. The amount can be paid in six instalments. The margin for the liquor traders is fixed at 27 per cent for an ordinary category and 20 per cent for a premium category and beer.