Licensees have to pay a fee of Rs 50 lakh to Rs 1.1 crore per year. It depends on the population of the area where the shop is allotted. One-sixth of the annual license fee has to be paid by August 23.
Under the rules, retail excise shops in areas with a population of up to 5000 will have to pay Rs 50 lakh. A person obtaining a shop license in an area with a population of more than 20 lakhs will have to pay Rs 1.1 crore per year.
This fee is small compared to the profit margin for the liquor dealer. They can earn 27 percent on common brands and 20 percent on premium varieties of liquor.
Reservation in allotment of liquor licences
There is also reservation in license allocation. Out of them 786 licenses i.e. 30 percent are for underprivileged class. Of these shops, 15 percent belong to Gowda, which traditionally taps toddy and sells liquor. Ten percent of the shops are for Scheduled Castes and five percent for Scheduled Tribes.
The process of accepting applications with a non-refundable application fee of two lakhs started from August 4 and ended on Friday midnight. Shops may start operating from December 1. Existing licenses are valid up to this date.
Two years ago, the government earned about Rs 1,370 crore.
Two years ago, the government collected about 69,000 applications for Rs. 1,370 crore was collected. Taking a big leap this year, the government has earned Rs 3,500 crore through shop license fees.
Experts say elections are coming this year and next year. Along with promoting economic development, business organization and tourism in the state, alcohol consumption has also increased, hence more people are willing to enter this business.
10,908 applications for one shop
There will be 615 liquor shops in Hyderabad. Most applications are received from Serilingampally. The site is in Hyderabad’s IT corridor and Shamshabad area, where the airport is located. It is said that 10,908 applications have been received for one shop in Saroornagar area.
Applications have come not only from Telangana but also from other states. A large number of people from Andhra Pradesh are also included among the applicants.
Revenue from liquor sales has doubled in Telangana. In the year 2015-16, the revenue of the state from liquor was Rs. 12,703 crore, which in 2021-22 will increase to Rs. 25,585 crores. In the last one year it has been around Rs. 30,000 crore is estimated.