Andhra Pradesh's New Bar Policy Fails, 20 Apply So Far for 840 Bars
Excise officials are banking on a rush of applications on August 25 and August 26. Otherwise, they will extend the deadline for receipt for applications.
Vijayawada: The Andhra Pradesh government’s new bar policy seems to have failed to get a good response, as only 20 applications have been received by Saturday night for a total 840 bars in the state.
The last date for submission of applications is August 26, subject to extension, before lots are drawn for the allotment of bars. August 23 and August 24 are bank holidays.
State excise officials are hopeful that applications along with non-refundable fee of Rs 5 lakh for each application may be remitted on August 25 and August 26. Otherwise, the last date for submission of applications could be extended.
Stakeholders involved in the bar and restaurant business have raised major objections, in particular to levy of additional retail excise tax (ARET) of 15 per cent on bars when compared to liquor retail shops. This means a bar owner has to pay 15 per cent extra on purchase price of liquor than the retail shop owner.
Another opposition is to mandatory submission of minimum four applications for a bar along with payment of a non-refundable application fee of Rs 5 lakh for each bar. This means a bar in a particular area will not open if the applicants are fewer.
The stakeholders point out that the TD-led NDA government has given permission for a ‘permit room’ adjacent to the existing liquor retail shop. It has extended the business hours by two hours, from 10:00 a.m. to 10:00 p.m. from earlier 11:00 a.m. to 9:00 p.m. Serious guzzlers prefer to buy their quota from a retail shop at a lower price and drink it right there, than going to a bar.
Further, cheap 180 ml liquor at Rs 99 cannot be sold in bars, which is another disincentive for stakeholders to open a bar.
In addition, the Telangana government is coming up with a new shop policy from the first week of September 2025. A good number of liquor traders from AP are showing interest in moving to Telangana, where business will be more profitable.
A bar owner in AP said, “We appeal to the state government to relax the 15 per cent ARET and four applications for each bar for draw of lots. This may encourage more traders to take part in the draw of lots for allotment of bars in the state.”
State excise authorities clarify that minimum four applications for draw of lots for allotment of bars is to attract new applicants than the existing licensees.
The new bar policy will come into effect from September 1. The license issued will be valid for three years from August 31. Ten per cent of the 840 bars are reserved for allotment to Geethakulalu (toddy tapping communities).
