With the Telangana government adopting a new liquor policy, enabling permit rooms attached to wine shops to operate, the move is likely to result in a high number of applications from Hyderabad. For another two years, the current license will be valid, and with assembly and local body elections coming up, many people are keen to register for permits. On November 20, a draw of lots would be organized, while the new shops would come into effect from the 1st of December.
During the Huzurabad by-polls, liquor sales indicate the prospects of an increase in revenue in the next two years.
In the last auction, the Telangana government has earned over Rs 1,000 Cr through the sale of applications itself. The windfall is also estimated to be higher this time as there is no limit on the number of applications. The Greater Hyderabad region has the majority of Telanagana’s liquor stores.
As per the officials, there are more than 700 stores in the city and its surroundings, and these shops also thrive on the sale of eatables too. The demand is also expected to be even greater because there is no need to pay EMD, and instead, one has to pay the cost of the license every two months. With no annual turnover constraints, the commission is highly lucrative.
Other salient features of the new policy include collecting Rs 5 lakh in cess for the environment, education, and development. Following the collection of VAT and GST, the Telangana government earns the third-highest income from liquor sales. If sources are to be trusted, the new changes are better for new license holders than earlier ones, so new entrants may bid for licenses, but many may not retain the license with them but sell it to others.
This time the government has decided that 15% of the total shops would be reserved for members of the Goud community, 10% for SCs, and 5% for STs.