Surprising Low Interest in 294 Liquor Licences in Warangal

The Excise Department in Warangal has expressed surprise after receiving only eight applications for the 294 liquor shop licences available in the region. This follows the tender notification issued on September 25, 2023, with applications opening on September 26. The low response indicates a notable lack of interest among traders in acquiring new liquor licences.

Details on Applications and Regional Distribution

Of the total licences, three applications were submitted from Warangal district for 57 shops, while one application came from Hanamkonda for 67 shops. Additionally, two applications were received from Jangaon for 50 shops, and another two from Mahbubabad for 61 shops. Notably, Mulugu and Jayashankar Bhupalpally districts, which collectively have 59 liquor shops, did not receive any applications.

The deadline for submitting applications is set for October 18, 2023. Following this date, the final selection of shop owners will occur through a lottery system on October 23, 2023.

Government Policies and Tax Structure

The Congress government has opted to continue its existing reservation policy for liquor shop allotments. This policy allocates 15 percent of licences to Gouds, 10 percent to Scheduled Castes (SCs), and 5 percent to Scheduled Tribes (STs). The government has also detailed the tax structure that shop owners must adhere to, which is payable in six installments over a two-year period.

The tax varies based on the population served by each shop. For example, shop owners serving a population of 5,000 are required to pay ₹50 lakh, while those serving populations of up to 50,000 must pay ₹55 lakh. The tax escalates to ₹60 lakh for populations up to 100,000, ₹65 lakh for populations up to 500,000, ₹85 lakh for up to 2 million, and ₹1.10 crore for populations exceeding 2 million.

The low number of applications highlights potential challenges for the Excise Department as they navigate the liquor licensing landscape in Warangal. As the deadlines approach, officials may need to reassess their outreach and engagement strategies with local traders.