Telangana hikes liquor shop licence fees, eyes Rs 6,500 crore revenue

The Telangana government issued a notification for liquor shop licences with a steep hike in application and licence fees, aiming to raise Rs 6,500 crore. Around 2,620 outlets will be allotted through lottery, with licences valid for two years

Hyderabad: The State government has issued a fresh notification for liquor shop licences, introducing a steep hike in both application and licence fees. The government is reportedly aiming to generate revenue of around Rs 6,500 crore through application and licence fees. The current licences will expire on November 30.

The non-refundable application fee has been raised from Rs 2 lakh to Rs 3 lakh, recording a steep 50 per cent jump. During the last round in 2023, the government had collected Rs 1,350 crore under application fees alone. Another Rs 3,500 crore was realised through licences. With more than 2,620 shops set to be allotted this time, the State is eyeing a significantly higher revenue.

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Alongside, the licence fee has been finalised on a population basis. In towns with less than 5,000 people, the licence fee has been fixed at Rs 50 lakh, scaling up to Rs 1.10 crore in areas with over 20 lakh population. Officials confirmed that licensees would be allowed to pay in six instalments.

The allotment will be through lottery, with no cap on the number of applications per individual. Reservations have been fixed at 15 per cent for Gouds, 10 per cent for SCs and 5 per cent for STs. Partnership firms and companies are also eligible to apply.

The new licences will be valid for two years from December 1, 2025, to November 30, 2027.