AP Notifies Norms for Grant of Bar License to Shacks on State’s Beaches

Vijayawada: Andhra Pradesh government has notified guidelines for granting licences to open bars at beach shacks from the period 01-09-2026 to 31-08-2029.

The government order number 362 issued by principal secretary (Revenue – Excise) Mukesh Kumar Meena on Wednesday, a beach shack means a small semi-permanent structure located along the beachfront. The shack is constructed using temporary and eco-friendly materials on a land parcel allotted by the AP Tourism Development Corporation or any other competent authority on a private beach land. The shack will be licensed under AP Excise Rules, 2025 to sell permitted alcoholic beverages.

Star hotels, tourism resorts, and tourism department-registered establishments located along the beach are eligible to set up beach shacks. These shacks should have a proper plinth area of 1,000 to 1,500 square feet, must maintain sanitation, and have kitchen, deck beds, umbrellas, parking, and fencing.

Initially, two shacks – one each at Suryalanka and Visakhapatnam – shall be allowed to operate on a pilot basis.

With regard to fees structure, the applicant shall pay a non-refundable application fee of ₹2 lakh for prior clearance. Upon grant of prior clearance, the applicant shall pay ₹10,000 towards application fee for grant of licence and also an annual Retail Excise Tax (RET) of ₹7.50 lakh for the first year, subject to an annual escalation of 10% during the licence period.

The business hours will be 10:00 a.m. to 8:00 p.m. when alcoholic beverages can be served. Food service may continue beyond alcohol service hours. Only low-alcoholic beverages, such as beer, wine, and Ready-to-Drink (RTD) beverages shall be permitted for sale. No sale of Indian Made Foreign Liquor or Foreign Liquor shall be permitted.

All existing bar licence conditions, including distance restrictions from educational institutions and others shall apply mutatis mutandis for the bar licence granted to beach shacks.

The government will review the pilot project outcomes at the end of a year of operations with reference to compliance, impact on coastal tourism footfall, and employment generation, among others. The government may then consider expansion to other identified beaches across AP’s coastal districts with revised fee structure and operational parameters as appropriate.

The excise licensing procedure and compliance norms note that the eligible applicant / entity will be allotted a land parcel by APTDC or any other competent authority to set up a beach shack with the recommendation of APTDC for grant of bar licence after making the required payments.

However, the applicant shall obtain CRZ clearance from the competent authority, erect the beach shack structure within the prescribed time frame, and obtain necessary mandatory approvals / licences such as trade licence, FSSAI licence, fire safety certificate and any other approvals. After obtaining all these approvals / licences, the applicant shall apply for grant of bar licence to the excise deputy commissioner who, in turn, may grant the privilege of bar after due verification of compliances.

The notification of excise policy guidelines for grant of bar licences to beach shacks has been published in the Andhra Pradesh gazette.