Bars pegged at 840, timings extended till midnight under new policy in A.P.

The Government of Andhra Pradesh has announced the New Bar Policy 2025–28, introducing reforms aimed at ensuring transparency, social equity, and financial sustainability in bar operations. It has also extended the timings, allowing the bars to function from 10 a.m. to 12 midnight.

Nishant Kumar, Commissioner of Prohibition & Excise, at a press meet held at the Commissioner’s Office in Mangalagiri on Monday, explained that under the new framework, notified through G.O. Ms. No. 275 dated August 13, 2025, the State has fixed the number of bars at 840, while reserving an additional 10% exclusively for Geetha Kulalu (toddy tapper community).

These reserved category bars will receive a 50% concession in licence fees, a move aimed at promoting social empowerment and broadening community participation.

All bar licences will be allotted through a public draw of lots, with a minimum of four valid applications required for each bar to qualify for the draw. The Commissioner said the system was designed to prevent speculative or single-party applications while fostering healthy competition. He noted that Andhra Pradesh’s recent retail shop allotments drew an average of 26 applications per shop, compared to 131 applications per bar in Telangana’s latest allotment.

Three slabs

The policy fixes the licence tenure at three years, from September 1, 2025, to August 31, 2028. The licence fees have been rationalised across population slabs: ₹35 lakh for towns with up to 50,000 residents, ₹55 lakh for populations between 50,001 and 5 lakh, and ₹75 lakh for cities with more than 5 lakh people. A 10% annual increase will apply across all categories.

The fees can be paid in six instalments, with one instalment secured by a bank guarantee.

Bars will be permitted in urban local bodies and notified tourism centres, excluding religious destinations. Provisions have also been made to expand into industrial corridors, metropolitan development areas, and SEZs in the future. In Tirupati, however, strict restrictions have been imposed, with bars barred along routes leading to Alipiri and Tirumala.

Officials underlined that the new licence fee structure is kept below retail shop licence slabs, ensuring long-term viability and predictability for operators. This, they said, would avoid the problem of vacant licences, citing the 44 that went unallotted even after re-auctions in 2022–23.

Mr. Nishant Kumar said the New Bar Policy 2025–28 represents a decisive step towards transparency, inclusivity, and sustainability. He emphasised that the framework provides equal opportunities for both established operators and new entrants, while keeping bar businesses viable and accountable across Andhra Pradesh.