NEW LIQUOR POLICY

As the current lease period in respect of liquor shops auctioned in the
year 2010 would expire on June 30, 2012. The state Government has formulated new Excise Policy in
relation to disposal of retail liquor shops during the Excise Year 2012-13.
According to the GO issued in this regard, the privilege of selling liquor through Retail Shops
shall be granted by collecting Fixed Licence Fee based on population (as per census) of the places
(Municipality/Town/ Village) where the shops are proposed to be established. The method of selection
for grant of shop licences shall be by drawal of LOTs. In the Scheduled Areas of the State the shops,
set up with the consent of the concerned Gram Sabhas, shall be allotted to local S.T. candidates by
drawal of LOTs, and if no one comes forward, to other S.T. candidates and still if there is no applicant
to others.
The period of license shall be one year and shall be considered for renewal only for the second
year (2013-14) subject to payment, as per Rules, of licence fee to be fixed by the Government for the
second year (2013-14) at the appropriate time and the licensee not incurring any disqualification as
per rules. There will however be no right of subsequent renewal beyond the second year (2013-14).
The number of retail shops shall be retained at the present level (6596). In case of MRP violation the
APBCL may run additional retail vends, wherever necessary, under the relevant provision of the Retail
Shop Rules.
The license fee for different population slabs shall be population slab upto 10,000, the annual
license fee for shop was Rs 32.5 lakhs, above 10,000 – upto 50,000, the annual license fee was Rs 34
lakhs, above 50,000 to upto 3 lakh, the annual license fee was RS 42 lakhs, above 3 lkahs-upto 5 lakhs,
the annual license fee was Rs 46 lakhs, above five lakhs –uptp 20 lakhs, the license fee was Rs 64 lakhs

and above 20 lakhs population, the annual license fee was RS 104 lakhs
In addition a licensee will be required to pay Privilege Fee @ 8% plus applicable VAT on the
invoice value of liquor purchased during the licence year in excess of 6 times the annual licence fee.
However no retailer margin will be allowed on such Privilege Fee component.
The Prohibition & Excise department, particularly the enforcement wing, should be
strengthened in order to effectively control all excise offences. Intensive campaign to educate the
public about the evil effects of drinkingshall be taken up by the P&E Dept. (NSS)