AP announces new 2022 bar policy from Sept. 1

VIJAYAWADA: Andhra Pradesh government has announced its new 2022 bar policy, which will come into force from September 1 and remain valid for three years in the state. As part of it, the state government issued G.O. 460 here on Friday and published it in the AP gazette.

According to the new bar policy, all existing bar licenses will expire on June 30. However, the new policy will become operational from September 1. During the two months of July and August, licenses of existing bars will be extended.

State government has fixed the period of licence as three years, subject to payment of a non-refundable registration charge and license fee; with provision to enhance the fee at the rate of 10 percent per annum. As the state government is committed to reduce consumption levels of alcohol in the state and help improve quality of life among people, it intends not to allow any more bars to open than the existing 840 spread all over the state.

The selected applicant is permitted to establish the bar anywhere in the municipal corporation or municipality or nagar panchayat or another place based on certain norms and subject to restrictions.

The non-refundable application fee for filing applications for allotment of bars under the new policy will be ₹5 lakh for population up to 50,000, ₹7.5 lakh for population from 50,001 to 5,00,000 and ₹10 lakh for population above 5,00,000. Applicants must enrol online for participation in the selection process, which will be through auction-cum-drawal of lots.

Commissioner of Prohibition and Excise will issue notification in state gazette calling for online applications to grant bars as fixed in urban local bodies/gram panchayats, except in respect of three star and above hotels and micro-breweries. For bars other than three star and above hotels and micro-breweries, license fee is ₹5 lakh and non-refundable registration charge is ₹15 lakh for population up to 50,000; licence fee is ₹5 lakh and non-refundable registration charge is ₹35 lakh for population between 50,001 and 5,00,000; and licence fee is ₹5 lakh and non-refundable registration charge is ₹50 lakh for population above 5,00,000.

For three star and above hotels, licence fee is fixed at ₹5 lakh and non-refundable registration charge is ₹50 lakh per annum, with an increase of 10 percent every year.

For tourism bars/clubs, license fee shall be fixed as per existing rules.
A committee comprising commissioner of prohibition and excise, commissioner of distilleries and breweries, and additional commissioner of prohibition and excise shall oversee the entire process of allocating bars in a transparent manner in the state.