VIJAYAWADA: The State government on Friday invited applications to issue licences for bars. As the licences of all the existing bars will expire on June 30, fresh licences should be obtained as per the Bar Policy 2022.
The new bar policy will come into force in the State from September 1 as the government has extended the time for the existing bar licences by two months (August 31) in order to have a holistic policy and transparent selection process.
The bar licence will be for three years subject to payment of non-refundable registration charge and licence fee with an enhancement of 10 per cent per annum.
The number of bars in the State will not exceed the existing 840. However, some bars will be permitted in new areas/ Urban Local Bodies by rationalisation of the existing number of bars, keeping the overall figure 840 intact.
The selected applicant is permitted to establish the bar anywhere in a municipal corporation, including 10 km from the periphery (within the revenue district) or in the municipality, including 3 km from the periphery (within the revenue district) or in the nagar panchayat, or other places so permitted from time to time, as the case may be, subject to such restrictions as may be imposed.
Selection process
The licences for all bars in a location (municipal corporation /municipality / Nagar Panchayath/other places) will be available for auction
The upset price for auction for each location will be as per applicable non-refundable registration charge
The highest amount quoted by the bidder will be referred to as 'H1' in that auction for that location
Bidders who have quoted bid amounts between 'H1' and 90 per cent of 'H1' will be awarded licences in the order of bid amounts, provided the number of such bidders is either less or equal to the licences proposed for auction in that proposed location
In case the number of bidders with bid amounts is between 'H1' and 90 per cent of 'H1' is more than the licences proposed for auction in that proposed location, the licences will be awarded in the order of bid amounts
In case the number of bidders with bid amounts is less than 90 per cent of 'H1', such bidders will be considered if they agree to match the quote of 90 per cent of 'H1'
If there are two or more bidders with equal bid for a single licence, it shall be awarded by draw of lots
For those applications to ensure principle of equity, licences will be awarded through drawl of lots, if they are more than the licences proposed for the location
Location guidelines
The licence fee will be as per existing rules
The license fee and the annual non-refundable registration charge for each of the licence will be enhanced by 10 per cent every year
The annual non-refundable registration charge and the licence fee of a bar situated in 10 km belt from the periphery of a municipal corporation and in 3 km belt from the periphery of a municipality, measured in a straight line on the horizontal plane, will be at the rate of annual non-refundable registration charge and the licence fee of bar situated within the limits of such municipal corporation and municipality respectively
If a bar falls within the area of a municipal corporation as well as a municipality, the non-refundable registration charge and licence fee payable shall be the non-refundable registration charge and licence fee applicable to the bar situated in the belt area of the municipal corporation
Licence fee and non-refundable registration charge per annum
For population up to 50,000, the licence fee is Rs 5 lakh per annum and the non-refundable registration charge is Rs 15 lakh per annum (upset price) and the total per annum will be (upset price). Non-refundable registration charge (Rs 15 lakh) + Auction bid in multiples of Rs 2 lakh over the non-refundable registration charge of Rs 15 lakh for each increase + licence fee (Rs 5 lakh) will be the total per anum
For population from 50,001 to 5 lakh, the licence fee is Rs 5 lakh per annum and the non-refundable registration charge is Rs 35 lakh per annum (upset price). Non-refundable registration charge (Rs 35 lakh) + Auction bid in multiples of Rs 2 lakh over the registration charge of Rs 35 lakh for each increase + license fee (Rs 5 lakh) will be the total per annum
For population more than 5 lakh, the licence fee is Rs 5 lakh per annum and the non-refundable registration charge is Rs 50 lakh per annum (upset price)
Non-refundable registration charge (Rs 50 lakh) + auction bid in multiples of Rs 2 lakh over the non-refundable registration charge of Rs 50 lakh for each increase + license fee (Rs 5 lakh)
For 3 star and above hotels, licence fee will be Rs 5 lakh and non-refundable registration charge of Rs 50 lakh per annum with an increase of 10 per cent every year. The government has extended the time for the existing bar licences by two months (August 31)