Liquor policy: AP gets Rs 1,800 Cr from non-refundable fees, eyes Rs 20,000 Cr from sales

Amaravati: The Andhra Pradesh government netted Rs 1,800 crores towards non-refundable application fees for 3,396 outlets.

The cash-strapped Andhra Pradesh government expects about Rs 20,000 crores through the sale of licensing fees and liquor during the remaining financial year, sources said.

“Once the outlet was allotted on a lottery basis, the winner will have to pay licensing fees ranging from Rs 50 lakhs to Rs 85 lakhs in six instalments. Last year, the government got Rs 30,000 crores through liquor sales. This year for the remaining six months, the government is expecting over Rs 17,000 crore,” a source, privy to the development told PTI.

90,000 applications for 3,396 private liquor outlets

According to Mukesh Kumar Meena, principal secretary of Revenue (Excise), the State government has received nearly 90,000 applications for 3,396 private liquor outlets throughout the State with Rs 2 lakh as non-refundable application fees contributing to about Rs 1,800 crores to the exchequer.

A total of 89,882 applications were filed by individuals for 3,396 shops across the State.

The highest number of bids was received from NTR Vijayawada with 5,825 applications, West Godavari with 5,628 applications, Eluru with 5,499 and Vizianagaram with 5,241 and the least number of bids received at ASR District 1205, Parvathipuram Manyam with 1,393 and Sri Satya Sai District with 1518.

The drawing of lottery for the allocation of licenses has begun

On Tuesday, the process for drawing of lottery for the allocation of licenses sale of liquor through private shops commenced in all 26 districts under the supervision of the respective collectors and joint collectors.

The State government will get Rs 2,084 crores as licensing fee annually from the liquor outlets in six instalments. The collective first instalment amount of Rs 335 crores from all the liquor shop license holders will be received by Tuesday, he said.

All modes of payment such as cash, UPI and others will be allowed at the liquor shops by consumers, unlike cash-only mode during the YSRCP regime.

The Andhra Pradesh Cabinet headed by chief minister N Chandrababu Naidu last month scrapped the old excise policy involving government-owned retail outlets and introduced a new policy wherein private outlets will be allowed to sell booze, apart from bars.

The government invited applications for 3,396 outlets across the State and allotment of shops through draw of lots was done on Monday. During the run-up to the Assembly polls, Naidu, then in opposition, accused the previous YSRCP government of fixing high prices that do not align with the quality of the liquor.

According to the new policy brought in by the CM Naidu government, the cheapest brand of liquor would be available at Rs 99 per 180 ML bottle.