Some 10 per cent of these bars would be allotted to the Geetha Kulalus, with an objective to “promote social equity and empowerment.”
Vijayawada:APs’ new bar policy for 2025-28 involves a "wide range of reforms" that would make bar operations "more transparent, financially sustainable and socially inclusive."
State excise commissioner Nishanth Kumar told media here on Monday that the new policy issued through GO Ms 275, would permit a total of 840 bars. Some 10 per cent of these bars would be allotted to the Geetha Kulalus, with an objective to “promote social equity and empowerment.”
The reserved 10 per cent bars, he said, would be given a 50 per cent concession in licence fee.
The commissioner said all bar licences would be allotted through a public draw of lots to ensure fairness and integrity. A minimum of four valid applications would be required for each bar to be included in the draw. This, he claimed, was to encourage healthy competition and prevent speculative or single-party applications.
In AP’s recent retail shop allotments, an average of 26 applications were received per shop, while in Telangana's bar allotments, 131 applications were received per bar.
The commissioner explained the tenure of licence had been fixed for three years beginning from Sept 1, 2025 and this would continue up to August 31, 2028. The licence fee structure had been rationalised to make bar operations viable across different population slabs.
Accordingly, in towns with a population up to 50,000, the fee was fixed at `35 lakh; in areas with a population ranging between 50,001 and five lakh, the fee is `55 lakh; and in cities with population above five lakh, the fee would be Rs 75 lakh. There would be a 10 per cent annual increase on the fee for all categories.
The state government, he said, had offered some flexibility in payment of the licence fee. The licensees could pay it in six installments backed by a bank guarantee for one installment.
The bars would be permitted in urban local bodies, notified tourism centres excluding religious destinations, and in future, in industrial corridors, metropolitan development areas, SEZs, based on requirement. Curbs have been imposed in Tirupati, however, where no bars would be permitted along routes leading to Alipiri and Tirumala.
The commissioner said the new bar policy has rationalised the fee in ways as to keep it in below the retail shop licence slabs. This is expected to reduce the risk of unallotted licensees, such as the 44 that remained vacant even after re-auction attempts were made in 2022-23.
He claimed that the new bar policy would provide equal opportunities for both the existing operators and new entrants.
