Hyderabad: The Telangana government is considering taking over all liquor business instead of giving licenses to retail liquor businesses, a leaf out of Andhra Pradesh, but has run into a strong opposition from the officialdom, which has warned Chief Minister K Chandrasekhar Rao that the move would “create unnecessary headaches” for the government.
The present excise policy is going to end by end of this month, and a new excise policy has to come into force from October 1. With just a week left to introduce a new excise policy, the deadline already crossed for the State government to have called for new applications bidding for retail liquor outlets, the government, faced with the dilemma of being stuck between a resolute chief Minister and a reluctant bureaucracy, may resort to a moratorium on biting the bullet and extend the present licences for another three months.
According to sources, Chief Minister Rao, fresh from a meeting with his AP counterpart, Mr Y S Jagan Mohan Reddy, who is a prohibition advocate, is seriously considering a move to take over liquor businesses and have the government assume its entire responsibility.
The State government currently earns around `400 crore through application fee and `1,000 crore through licence fee. The officials argued that if the government were to take over liquor business, it would lose `1,400 crore.
The opposing argument of the Chief Minister’s Office (CMO) officials is that the State government, which was giving 20 per cent margin on liquor sales to private operators, were to assume the business, and revenue, it would earn a much higher revenue. Moreover, the government can also enhance prices of liquor further to augment revenues.
Excise officials have told Mr Rao that maintenance of liquor shops would become a headache for the government. If liquor stock was stolen, who would be responsible, they asked, warning him of high losses to the government on this account. According to sources, Mr Rao had discussed this issue with Mr Jagan Mohan Reddy when they met Monday.
Mr Reddy gave a detailed explanation on how his government was preparing to handle liquor business.
CMO officials are arguing that there would also be a huge political advantage in a government takeover of liquor business, arguing, it was a first step towards a possible prohibition.
