The Andhra Pradesh government is banking on a substantial revenue stream from liquor sales and licensing fees in the remaining months of the financial year, projecting a whopping ₹20,000 crore in earnings. This comes after a new excise policy overhaul under Chief Minister N Chandrababu Naidu, aimed at addressing past inefficiencies and concerns about the previous administration’s liquor policy.

So far, the state government has already collected ₹1,800 crore through non-refundable application fees from a total of 90,000 applicants vying for 3,396 private liquor outlets across the state. Each applicant has paid ₹2 lakh for the application process, further adding to the state’s financial reserves. According to Mukesh Kumar Meena, Principal Secretary, Revenue (Excise), this new approach allows private liquor outlets to operate alongside bars, offering consumers more choices and better access to affordable liquor brands.

The government's expectation of an additional ₹17,000 crore from liquor sales and licensing fees in the next six months is based on previous years’ earnings. Last year alone, liquor sales contributed over ₹30,000 crore to the state’s coffers, a critical component of Andhra Pradesh’s excise revenue.

Policy Changes and Revenue Generation

The key shift in the new liquor policy is the reintroduction of private liquor outlets after the state had experimented with government-owned retail outlets during the tenure of the previous YSRCP government. Under this previous system, retail sales of liquor were entirely managed by government-owned stores, limiting competition and allegedly raising liquor prices beyond reasonable levels. N Chandrababu Naidu promised to reform the policy in the run-up to the Assembly elections, and he has now delivered on that promise.

Under the new policy, the licensing fees for operating these outlets range between ₹50 lakh and ₹85 lakh, depending on the outlet's location and size. This fee is split into six installments, with the first installment expected to bring in ₹335 crore by Tuesday. In total, the state is set to receive ₹2,084 crore annually from licensing fees alone.

Consumers can now enjoy cheaper liquor prices, with the cheapest brand of 180 ML liquor starting at ₹99 per bottle. This shift in pricing comes as a direct response to the previous government’s liquor policies, which Naidu criticized for charging higher prices without matching quality standards.

Impact of Liquor Sales on Revenue

Liquor sales have always been a significant contributor to Andhra Pradesh’s economy. In a state where excise taxes form a substantial portion of the government's revenue, reforms to the liquor distribution system are expected to stabilize the financial situation.

With the introduction of this new excise policy, Andhra Pradesh aims to establish a balanced system where both private and government entities play a role in liquor distribution. Private liquor outlets will be governed under strict regulations, ensuring that the system operates transparently and efficiently.

One of the main draws of the new policy is the expected reduction in black-market sales of alcohol, a problem that plagued previous administrations. With the introduction of private outlets and competition, consumers will have easier access to legal, regulated liquor at affordable prices.

Revenue Projections for the Coming Financial Year

The liquor industry remains a key pillar in the government’s financial strategy. For the remaining six months of this fiscal year, Andhra Pradesh is eyeing over ₹17,000 crore from liquor sales.

The new excise policy also introduces multiple payment methods at liquor shops, such as cash, UPI, and other digital modes, signaling a modernization of the state’s payment infrastructure. Previously, under the YSRCP government, only cash payments were allowed, restricting customer convenience and modern financial practices.

The reforms are expected to boost liquor sales significantly, resulting in a net increase in revenue collection from the excise department. The private outlet system is designed to enhance operational efficiency, ensure compliance with regulations, and generate higher profits for both the government and private investors.

This policy not only benefits the government but also contributes to the liquor industry’s growth. With the influx of 90,000 applications, the state has demonstrated a keen interest in expanding the retail liquor market, which in turn is expected to create jobs and stimulate local economies.

Conclusion

With a projected ₹20,000 crore in revenue from liquor sales and licensing fees, the Andhra Pradesh government is on track to strengthen its financial position while introducing consumer-friendly reforms in the liquor industry. By integrating private outlets, digital payment methods, and competitive pricing, Chief Minister N Chandrababu Naidu is reshaping the state's excise policy to ensure greater economic benefits for the state and its residents.

For more related news, check out our reports on:
{Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi - Embed this Link under text - https://financesaathi.com/ipo.php}
{Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi - Embed this Link under text - https://financesaathi.com/}

Join our {Trading with CA Abhay Telegram Channel - Embed this Link under text https://t.me/abhayvarn} for regular Stock Market Trading and Investment Calls by SEBI Registered Research Analyst CA Abhay Varn & {Finance Saathi Telegram Channel - Embed this Link under text - https://t.me/financesaathi} for Regular Share Market, News & IPO Updates.

Start your stock market journey today and {open a Free Demat Account with Choice Broking FinX - Embed this Link under text https://choiceindia.com/open-free-demat-account?=undefined&refercode=WlZY} to apply in upcoming IPOs.