Andhra Pradesh Excise Policy 2014-15

The following notification will be published in an Extra-ordinary Issue of the Andhra Pradesh Gazette, dated the 24th  June, 2014.


In exercise of the powers conferred by section 72 read with sections 17, 28 and 29 of the Andhra Pradesh Excise Act, 1968 (Andhra Pradesh Act 17 of 1968) the Governor of Andhra Pradesh hereby makes the following amendments to the Andhra Pradesh Excise (Grant of licence of selling by shop and conditions of licence) Rules, 2012 issued in G.O.Ms.No.391, Revenue (Ex.II) Department, dated the 18th June, 2012 and published in the Andhra Pradesh Gazette in Rules Supplement to part II, Extraordinary No.1, dated the 18th June, 2012 and  as subsequently amended:


In rule 5(1) Andhra Pradesh Excise (Grant of licence of selling by shop and conditions of licence) Rules, 2012, for the expression “ at least (7) Seven days “ the expression “ at least (5) five days “ shall be substituted.

This order shall be deemed to have come into force with effect on and from 23.06.2014.


The Government, after careful examination of suggestions received from various stake holders, hereby formulate the Excise Policy 2014-15 in relation to retail liquor shops during the Excise Year 2014-15:

1. The privilege of selling liquor by retail shops shall be by selection through drawl of lots and collecting fixed licence fee based on population, as per 2011 Census, of the places (Corporation/ Municipality/Town/Village) for the year 2014-15.

2. The Commissioner of Prohibition & Excise is permitted to relocate the un-disposed A4 shops from any locality / area as he thinks fit, but he
shall not relocate the A4 shop from higher licence fee slab to lower licence fee slab.

3. The period of licence shall be for one year i.e., for the year 2014-15. However, there will be no right of subsequent renewal beyond 2014-15.

4. The number of retail shops shall be in the villages of retained at the present level of (4371). The nine (9) A4 shops located in Khammam
District which were transferred to State of Andhra Pradesh through Ordinance of Government of India will also be notified. Thus the total
number of shops to be notified shall be (4380).

5. The Andhra Pradesh Beverages Corporation Limited will be permitted to open retail outlets under rule 18(1) of Andhra Pradesh Excise (Grant of
licence of selling by shop and conditions of licence) Rules, 2012.

6. The Andhra Pradesh Beverages Corporation Limited outlets established under rule 18 (2) of Andhra Pradesh Excise (Grant of licence of selling
by shop and conditions of licence) Rules, 2012, will continue to function for the year 2014-15 also.

7. The licence fee for different population slabs shall be as follows:
S.No Population slab as per 2011 census  Licence fee per shop for 2014-15 (Rs. In lakhs)
1 Upto 10,000 32.50
2 Above 10,000 Upto 50,000 36.00
3 Above 50,000 Upto 3 lakhs 45.00
4 Above 3 lakh Upto 5 lakhs 50.00
5 Above 5 lakhs Upto 20 lakhs 64.00

In addition, a licensee will be required to pay Privilege Fee @ 8% plus applicable VAT on the invoice value of liquor purchased during the licence year in excess of seven times the annual licence fee. However, no retailer margin will be allowed on such Privilege Fee component.

8. All the A4 shops in State shall be equipped and installed with the required machinery for usage of Holographic Excise Adhesive Labels
(HEAL) from 01.07.2014. The regular licence of A4 shops will be issued only after installation of required infrastructure at the shops for effective
implementation of Track & Trace system.

9. The Enforcement wing will be strengthened to effectively control all Excise offences including un-authorised sale outlets (Belt shops).

10. Intensive campaign to educate the public about the evil effects of drinking shall be taken up.

11. Steps will be taken to establish one de-addiction centre, in every district in the State, in consultation with Health, Medical & Family
Welfare Department.

12. The provisions contained in the Andhra Pradesh Excise (Grant of licence of selling by shop and conditions of licence) Rules, 2012, as amended
from time to time, shall Govern the process of the allotment and the consequent operation of the A 4 retail outlets by the licencees.

13. The Commissioner of Prohibition and Excise, Andhra Pradesh, Hyderabad is requested to take necessary action accordingly in the

G.O.Ms.No.265. Dated:22.06.2014
1. G.O.Ms. No.390, Revenue (Ex.II) Department, dated: 18.06.2012.
2. G.O. Ms.No.391, Revenue (Ex-II) Department, dated: 18.06.2012.
3. G.O.Ms. No.358, Revenue (Ex.II) Department, dated: 22.06.2013.
4. The A.P. Reorganization(Amendment ) Ordinance2014 (No. 4 of 2014) published in Govt. of India Gazettee No. 21 dated: 29.05.2014.
5. From the CPE, A.P., Hyd Cr. No.3600/2010/CPE/G2 Dt:18-06-2014.
6. G.O.Ms. No.264, Revenue (Ex.II) Department, dated: 22.06.2014

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