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  • Writer's pictureDahlia Foundation

Telangana: Booze bars likely to go under hammer, renewals scrapped

After lowering prices to spur liquor sale in Telangana, the state government has now decided to replicate the auction system on booze bars in the state by scrapping the renewal procedure with a licence. The over 1,400 bars in the state may have to switch to the auction system, akin to liquor shops. As per highly placed sources, the state will issue these directives soon.

In the existing renewal system, bars owners need to pay an annual 41 lakh fee along with 2 lakh application cost. If these parameters are met, renewal of licence is automatic.

Currently, liquor shop auctions are conducted every two years. In Hyderabad, liquor shops in prime locales have to cough up nearly 1 crore as license fee. "This might be the case for bars too. And the license system may be in vogue for one or two years, but we can't say how many bars will pay this kind of fee," said industry sources.

"The new system will not prevent anyone from applying for licences and in fact, many will now be open to bidding, but there is concern about those who want to offer others for goodwill, but not get a good deal," the sources said.

Hyderabad and Rangareddy are urban lifestyle hotspots, clock high liquor sales and mop up big revenue for state coffers. Many bar owners have purportedly spent much in recent times to renovate and enhance interiors. The state government, however, did not drop any hint then on hike in taxes on turnover.

Courtesy: Sister Concern: www.dahliafoundation Contact..9833998907

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