Andhra Government Unveils New Bar Policy With Reforms, Reservation For Tapping Community

The Andhra Pradesh government on Monday unveiled its new bar policy for 2025-28, focusing on financial sustainability, transparency, and long-term industry stability.

Under this policy, the government has authorised 840 bars, with a 10% reservation for Geetha Kulalu, a toddy-tapping community. This category will benefit from a 50% concession on license fee, to promote empowerment, equity, and fair opportunities across communities.

"The government of Andhra Pradesh issued the new bar policy, introducing wide-ranging reforms to make bar operations financially sustainable, transparent, and socially inclusive," said an official release.

Under the new policy, all bar licenses will be allocated through a draw of lots. To ensure fairness and discourage speculative applications, at least four valid applications are required for each license. The licenses will be valid for three years beginning from September 1, 2025 to August 31, 2028, while the fees will range from Rs 35 lakh to Rs 75 lakh, with a 10% annual increase, it said.

Applicants are required to pay an initial fee of Rs 5 lakh along with a Rs 10,000 processing fee. The licence fee can be paid in six instalments. Bars will be permitted in urban local bodies, tourism centres, and airports except in Tirupati where restrictions apply on sensitive roads near Tirupati railway station, bus stand, Alipiri, hospitals and temple routes.

Further, the policy rationalises fees, simplifies licensing and ensures transparency for sustainable growth in the southern state's liquor trade framework.