Excise officials keep fingers crossed over applications for retail outlets

The Excise Department is keeping its fingers crossed over the response that the notification for auction of retail liquor outlets will evoke from prospective applicants.

The department reported significant revenue through application fees during the last auction in 2023 when the BRS Government, headed by Chief Minister K. Chandrasekhar Rao, advanced the auction schedule. Over 1.3 lakh applications were received for 2,620 outlets, averaging close to 50 applications a shop, fetching around ₹2,700 crore to the exchequer in the form of non-refundable application fee.

The department is confident of raising substantial revenue through the auction this year too, owing to the 50% rise in application fee from ₹2 lakh to ₹3 lakh each. But, officials are unwilling to hazard a guess as to whether the number of applicants will remain the same like the previous auction. One of the main reasons behind the uncertainty is the participation of applicants from neighbouring Andhra Pradesh.

A good number of applicants from the neighbouring State favoured Telangana during the last auction owing to the excise policy there. The then AP Government, in its policy, announced several measures including “removal of private persons from retailing by shop”.

The government instead allowed the AP Beverages Corporation Limited to sell liquor through retail outlets prompting applicants to participate in good numbers in the auction conducted in Telangana.

The situation, however changed since the TDP Government took over the reins in AP last year with Chief Minister N. Chandrababu Naidu restoring the grant of licences. Officials remained tight-lipped when asked whether they are hopeful of equal number of applicants turning up for the auction this time around.

While the volume of liquor business in Telangana continues to draw applicants to invest in retail outlets, permission has been granted to partnership firms or companies to apply for licences, which is likely to evoke good response.

Meanwhile, the department has made clear that the auction process is likely to start in October-end or in November, and there is no scope for advancing the schedule. “The schedule has been advanced in 2023 in view of the elections. But the process this time around will start as usual,” a senior official told The Hindu.