- Andhra Pradesh to introduce new liquor policy from September 1 focusing on public safety
- A lottery system will allot bar licences with tiered fees based on population size
- Ten per cent of bar licences reserved for Backward Classes communities
The Andhra Pradesh government is set to introduce a new liquor policy from September 1, with Chief Minister N Chandrababu Naidu emphasising a shift in focus from revenue generation to public safety.
The announcement follows a high-level review meeting of the Excise Department held at the Secretariat on Monday. The quality of liquor and health concerns regarding safety had become huge issues during the previous YSRCP government.
The new policy, based on recommendations from a cabinet sub-committee, is designed to ensure the availability of quality liquor and mitigate the health risks associated with alcohol consumption.
The Chief Minister highlighted that promoting beverages with lower alcohol content could be a key strategy in this regard. He also recalled the previous administration's tenure, which he said was marked by the availability of poor-quality liquor that had a devastating impact on many families.
A key change in the new policy, which will replace the one expiring on August 31, is a lottery system for allotting bar licenses. The government currently has 840 bars operating in the state.
The cabinet sub-committee has proposed a tiered annual license fee structure based on population: Rs 35 lakh for areas with less than 50,000 people, Rs 55 lakh for areas with population up to 5 lakh, and Rs 75 lakh for those above 5 lakh. To qualify for the lottery, a minimum of four applications will be required for each bar license.
In a move aimed at social inclusion, the Chief Minister has directed that 10 per cent of all bar licenses be reserved for Backward Classes (BC) communities. This mirrors a similar reservation policy already in place for liquor retail outlets in the state.
Officials estimate that the new policy will generate approximately Rs 700 crore in revenue from application and license fees.
During the meeting, officials also provided a progress report on efforts to curb illegal liquor. They informed the Chief Minister that 12 districts in the state have been declared completely Illicitly Distilled (ID) liquor-free, with plans to extend this to an additional eight districts this month and the remaining six by September.
Officials also noted that the availability of quality, reasonably priced liquor in Andhra Pradesh has led to a significant increase in sales near border areas, while sales in neighbouring states have declined. This, they explained, has also helped in curbing the illegal transportation of liquor from other states.
