HYDERABAD: With the current two-year licensing period for liquor shops in the state expiring in about two months, the state government has initiated a policy overhaul aimed at reform and revenue optimisation. In the light of the recent adulterated toddy incident, the government is aiming to take a major policy decision to prevent such incidents.
Notably, the state government has directed the Prohibition and Excise department to draft two distinct policy models for evaluation.
“The chief minister has asked for two distinct drafts to be prepared - one for a two-year policy and another for a three-year - complete with financial and logistical implications for each,” a top Excise and Prohibition official said, seeking anonymity.
Essentially, the Excise department is also preparing detailed reports on revenue impact, implementation of timelines, and stakeholder preparedness.
As the deadline for the current policy approaches, the government is under pressure to complete the tendering process and license allocation in time for the next policy cycle starting December 1, 2025. Notably, as the model code of conduct for local body elections is nearing, it is expected that the authorities are likely to start the application process anytime soon.
According to sources, the Prohibition and Excise department is currently examining whether the liquor shops should be given contract for a two-year or three-year term. It’s also considering the proposal to raise the application fee to Rs 3 lakh from the current Rs 2 lakh, if the policy tenure is extended to three years.
Sources said that the government is also considering reforming laws to allow microbreweries.
With regard to the applications for the A4 shops, the officials proposed a minimum 45-day window for submission of applications during the recent meeting, arguing that this would encourage higher participation from prospective vendors.
Another round of consultations with Chief Minister Revanth Reddy is expected soon, after which the new excise policy is likely to be finalised. The policy is being crafted with a clear focus on maximising state revenue while ensuring timely and transparent implementation.