
New bar policy gets AP cabinet nod, allotment through draw of lots
Like in retail liquor outlets, the govt has reserved 10% of bar licences for toddy tapers at 50% of the licence fee.
The allotment of licence would be done through draw of lots. Anyone can apply for a bar licence by paying the application fee. A minimum of four applications is required for conducting the lottery for a particular area. Announcing the decision, I&PR minister Kolusu Pardasarathi said the new policy was finalised after studying bar policies in neighbouring states.
Pardasarathi observed that more than 50% of bars are struggling to stay afloat in the existing policy, which prompted the govt to introduce the new policy. "The 840 existing licences will be renewed according to the new policy. Business hours for the bars have been fixed from 10 am to 11 pm. The existing bar policy will expire on Aug 31, and the new policy will come into effect from Sep 1. The application process and allotment of licences will be completed before Aug 31," he said.
The minister further noted that during the YSRCP regime, there was huge difference between the bid prices, leading to cartelisation. "Allotment of licences will be done through a transparent process as the licence fee is fixed for the bars in all three categories," he added.
While the licence fee for bars in cities up to 50,000 population has been fixed at Rs 35 lakh per annum, Rs 50 lakh will be charged for bars in cities with population between 50,000 and 5 lakh.
The annual licence fee for bars located in cities with more than 5 lakh population has been fixed at Rs 75 lakh. The fee to apply for the bar licence will be Rs 5 lakh. Unlike in the existing system, licence fee can be paid in six equal instalments and submission of bank guarantee equivalent to one instalment.
The liquor off take price for bars is fixed on par with retail shops.
The cabinet also approved the proposal of granting licences to permit rooms in retail outlets. The licence fee for the permit room has been fixed at Rs 5 lakh per annum. The decision was taken after 2.71 lakh cases of drinking in public places was reported in last one year. This is to ensure that no public inconvenience is caused and also to encourage responsible drinking," Pardasarathi said.

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