Cash-Strapped Andhra Govt Expects Rs 20,000 Cr Boost From Liquor Sales, Licences In FY 25

Andhra Pradesh is also set to receive Rs 2,084 crore annually in licensing fees from the liquor outlets which will be paid in six installments.

The new liquor policy, introduced under the leadership of Chief Minister N. Chandrababu Naidu, replaces the previous system of government-owned retail outlets with private liquor shops.

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The cash-strapped Andhra Pradesh government is projected to generate around Rs 20,000 crore from liquor sales and licensing fees during the remaining six months of the current financial year, as reported by PTI. The state has already collected Rs 1,800 crore in non-refundable application fees for 3,396 liquor outlets, and it expects to bring in an additional Rs 17,000 crore through liquor sales. 

"Once the outlet was allotted on a lottery basis, the winner will have to pay licensing fees ranging from Rs 50 lakh to Rs 85 lakh in six installments. Last year, the government got Rs 30,000 crore through liquor sales. This year for the remaining six months, the government is expecting over Rs 17,000 crore," a source familiar with the matter told PTI.

Mukesh Kumar Meena, Principal Secretary, Revenue (Excise), confirmed that the government received nearly 90,000 applications for the 3,396 private liquor outlets, with applicants paying Rs 2 lakh each as a non-refundable fee. This contributed approximately Rs 1,800 crore to the state's exchequer.

The state is also set to receive Rs 2,084 crore annually in licensing fees from the liquor outlets, which will be paid in six installments. The first collective installment of Rs 335 crore is expected by Tuesday.

The new liquor policy, introduced under the leadership of Chief Minister N. Chandrababu Naidu, replaces the previous system of government-owned retail outlets with private liquor shops. Naidu's cabinet scrapped the old excise policy last month, allowing private outlets to sell liquor alongside bars. Under the new policy, the cheapest liquor brand will be priced at Rs 99 for a 180 ML bottle, in an effort to provide more affordable options compared to the previous government’s pricing structure, which was criticized for offering high prices that did not match the quality.

Additionally, unlike the previous regime, where payments were cash-only, the new system will allow consumers to use various payment methods, including cash and UPI. The allotment of the liquor outlets was conducted through a lottery system on Monday.