Date:18/08/2004 URL: http://www.thehindu.com/2004/08/18/stories/2004081805630500.htm

Andhra Pradesh

Heady days ahead for rural liquor shops in State

By S. Harpal Singh

ADILABAD, AUG. 17. The State Government is likely to liberalise licence procedures for setting up of retail liquor shops in rural areas, considering the Excise Department's revenue-generating potential. As the `excise year' is slated to start on October 1, the Government has begun formulating a new excise policy.

Money-spinner

Excise is one of the major revenue-generators for the State and Adilabad's contribution through liquor sale is one of the highest among the districts.

At present, Adilabad contributes about Rs. 6 crores to the exchequer by way of licence fees for retail liquor shops and bars for the six months ending September 30. Profits on liquor sales come to Rs. 117 crores annually.

According to sources, the State's plan to open new retail shops in rural areas may also help control flow of country liquor from the Maharashtra border.

The Excise Department is not much worried about the sales through `belt shops', which abound in major towns like Adilabad, Nirmal, Mancherial, Kagaznagar etc since they sell liquor supplied by the AP Beverages Corporation Limited.

`Country' troubles

But, flow of country liquor from Maharashtra and manufacture of liquor in villages is a cause of concern to the Excise Department. These are cheap and so will eat into the excise revenue from the district.

Under the present policy, licences are given for bar in towns for a fee of Rs. 9.25 lakhs. There are 26 bars in the district. Licences for liquor shops in rural areas were charged a fee ranging between Rs. 3 lakhs and Rs. 8.25 lakhs. There are 214 rural liquor shops in the district.