Date:08/02/2005 URL: http://www.thehindubusinessline.com/2005/02/08/stories/2005020801591700.htm

Back AP: New excise policy may spur liquor retail growth

Our Bureau

Hyderabad , Feb. 7

THE new excise policy announced by the State Government on Monday is expected to spur a growth in the liquor retail outlets and bars. The policy effective from April, states that there would be 7,500 retail outlets compared to 6,812 licences issued last year.

It has been decided to grant licenses for setting up bars in places where population is more than 25,000.

Earlier, only permit rooms were allowed. The policy also does away with the practise of renewal of licence for retail outlets, making fresh applications necessary.

With respect to Club licences, the fee structure has been revised on the basis of population. For areas having population of three lakh, the fee would be Rs 3 lakh. For cities, which have population of more than three lakh, the fee would be Rs 6 lakh.

The fee structure has also been enhanced on the same lines for bars and pubs located in the guesthouses of the A.P. Tourism Development Corporation.

As for permit rooms, the major change in the policy is that they will not be allowed in places where the population is 25,000 and above and within a belt area of two km of such places.

The margin for the retail liquor sellers, which was 30 per cent across the board last year, has been slashed. It would now be 27 per cent on ordinary, 20 per cent on medium and premium brand varieties of Indian liquor and 25 per cent on beer.