Andhra Pradesh Unveils New Liquor License Guidelines for Airports Across the State

The Andhra Pradesh state government has officially introduced a new regulatory framework for the establishment of bars and liquor retail outlets at various airports throughout the region. This policy shift, detailed in a recent government order, outlines the specific administrative requirements for operators seeking to integrate alcohol sales within airport facilities. Notably, the policy explicitly excludes the Tirupati Airport from these provisions.

Revenue (Excise-II) principal secretary Mukesh Kumar Meena issued G.O. Ms. No. 386, which serves as the foundational document for these new airport liquor license guidelines. This directive provides a structured pathway for airport operators to recommend eligible applicants for the necessary permissions, ensuring that all such establishments operate under clear regulatory oversight. By standardizing these procedures, the state aims to maintain consistent standards for service delivery within these high-traffic transit hubs.

Licensing Procedures and Operational Standards

To acquire a bar license, prospective operators must submit a formal application under Form-1B. This process requires a non-refundable application fee of Rs 5 lakh to be paid to the designated excise deputy commissioner. Once a successful inquiry is completed, the district excise officer is authorized to issue the license under Form-2B. Similarly, applicants intending to open liquor shops must follow the Form A-3(B) protocol, which necessitates a non-refundable application fee of Rs 2 lakh.

The duration of these licenses is tethered to the existing agreements or Memorandums of Understanding (MoU) established between the airport authorities and the respective licensees. Regarding operational hours, these facilities are permitted to function around the clock. However, all retail and bar activities remain strictly bound by internal airport operational protocols, national security mandates, and necessary law and order requirements to ensure safety and compliance.

Financial Implications and Policy Review

The state government has also defined a clear financial structure regarding the annual retail excise tax (RET) for these establishments. For airports managing a passenger volume of 20 lakh or more annually, the annual excise tax for a bar is set at Rs 25 lakh. For airports experiencing lower passenger traffic, the rate is set at Rs 15 lakh. Furthermore, the annual excise fee for independent liquor shops located within these premises has been established at Rs 1 crore.

The administration has announced that these regulations are not permanent and will undergo a comprehensive evaluation after a period of three years. This future review process will be primarily driven by the fluctuations in annual passenger footfall at the respective airports, allowing the government to adjust its fiscal policy and operational framework to better reflect the evolving needs of the state’s aviation infrastructure.

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