NAVEENA GHANATE
Hyderabad
The Excise Department is expecting 10% to 20% more revenue from the fee for granting licences to liquor shops during the excise year 2023-25.
Official sources said, “For the excise year 2021-23, the revenue was about Rs 1,400 crore. We are anticipating 10% to 20% more. Last time we got 26 applications on average. This time we are expecting 3 to 4 more applications than last year.”
As per the new liquor policy announced by the Government, the license fee per annum for a shop ranges from Rs 50 lakh to Rs 1.1 crore per annum, depending on the area’s population.
The application process must be done ideally in November 2023 as licenses are only valid till then, but it was advanced due to elections.
“The licence fee is the same as last year. Changing the licence fee would need government approval and then this would lead to a delay due to elections.
After that, there will be Lok Sabha elections. Considering the schedule of elections and the possible postponement of work the excise department decided on an early call for liquor licences,” sources said.
It may be mentioned here that last time nearly 67,000 applications were received for 2,620 new liquor shops.
The total number of shops for which licenses are to be issued is 2,620 across the state, of which 786 are reserved for disadvantageous sections. In Hyderabad, there are 615 outlets.
The highest number of applications came from districts neighbouring Andhra Pradesh. For a single shop in the Madhira town of Khammam district, 121 applications were received.
During the licence period 2019-21, there were 48,784 applications for 2,216 outlets. Now, the number of outlets has been increased to 2,620. During 2019-21, the department generated a revenue of Rs 968 crore.
The tender process for issuing new licenses for liquor shops started on August 4, 2023, for two years starting December 1, 2023. The margin for liquor traders has been fixed at 27 per cent for the ordinary category and 20 per cent for the premium category and beer.
Applications will be accepted till August 18. A draw will be conducted to select successful applicants on August 21. Those who get licenses must pay the first instalment of Excise Tax on August 21 and 22.
The new shops can be opened from December 1, 2023, and continue operations till November 30, 2025, as per the notification.