The government of Hyderabad is planning to generate significant revenue by auctioning off liquor shop licenses throughout the state soon. As part of the new Excise Policy 2025, there will be an increase in both the application and license fees for liquor shops for a two-year period.
Chief Minister A Revanth Reddy is set to conduct a comprehensive review of the Excise Department by the end of August. The aim is to make strategic decisions to enhance income from the liquor sector. While fees are set to rise, retail liquor prices will stay the same, given the recent price hikes for beer, budget liquor, and premium options.
The State Excise and Prohibition Department has prepared a report, suggesting ways to boost revenue through liquor sales. They propose raising the non-refundable application fee to Rs 3 lakh, up from Rs 2 lakh in the last auction of 2023. The current licenses for liquor shops will expire in November.
In preparation for upcoming needs in welfare and development projects, the government plans to invite applications for new licenses by September. Last year, the sale of applications alone brought in over Rs 2,000 crore. This time, the department aims to earn nearly Rs 3,000 crore.
Officials are also considering a license fee increase of at least 20% in Greater Hyderabad and 10% in other urban areas. Currently, the annual license fee for liquor shops in Hyderabad is Rs 1 crore. This fee is expected to rise to Rs 1.20 crore. The Excise Department has reviewed the annual turnover of all licensed wine shops to inform these changes.
