The liquor industry, Telangana Wine Shop Tenders 2023 has always been a significant player in the business landscape, with its high revenue potential and consistent demand. In recent news, other states’ businessmen are expressing a keen interest in filing tenders in the Telangana liquor business, signaling a potential shift in the competitive dynamics of the industry. Notably, an Andhra Pradesh-based real estate company has made waves by submitting a staggering 5000 tender applications with a total worth of Rs 100 crores. This unprecedented move has sparked discussions about the evolving trends in the liquor market and the potential implications for both local and out-of-state players.
Exploring New Frontiers: Businesses Eye Telangana Liquor Market
The Telangana liquor market has long been dominated by local players, but recent developments suggest a shifting landscape. Entrepreneurs and businesses from neighboring states are increasingly attracted to the business opportunities presented by the Telangana liquor industry. The state’s growing economy, coupled with its vibrant urban centers, has piqued the interest of investors looking to diversify their portfolios.
The AP Real Estate Company’s Bold Move
Standing out among the wave of businesses eyeing the Telangana liquor market is an Andhra Pradesh-based real estate company. This unexpected entrant has taken the industry by surprise by submitting a remarkable 5000 applications for liquor tenders. With a total investment potential of Rs 100 crores, the company is making a bold statement about its intentions to tap into this lucrative market.
Enhancing Liquor Shop Allotment Guidelines for 2023-2025: A Comprehensive Overview
In a significant move, the government has introduced revised guidelines for the allocation of retail liquor (A4) shops for the license period spanning 2023 to 2025. These guidelines aim to ensure fairness and transparency in the allotment process, while also addressing socio-economic considerations. Let’s delve into the finer details of these updated guidelines.
License Period and Privilege
The privilege of operating a retail liquor shop for the license period 2023-25, commencing from December 1, 2023, to November 30, 2025, will be granted through a lottery system based on fixed shop excise tax.
Application Process Simplified
Prospective applicants or their authorized representatives are invited to submit applications using the prescribed application form provided in Annexure 1. This application opportunity extends to partnership firms and companies. Applicants are also permitted to submit multiple applications for a single A4 liquor shop, subject to the payment of the prescribed application fee.
The entire process, starting from identifying eligible A4 liquor shops for allotment to Goud/SC/ST categories, up to issuing notifications and commencing operations, will be meticulously scheduled by the Commissioner/Director of Prohibition and Excise.
To ensure the socio-economic empowerment of the Goud community, along with Scheduled Castes (SC) and Scheduled Tribes (ST), the government has outlined a strategic plan. The allotment of A4 liquor shops will be as follows:
- Gouds: 15%
- Scheduled Castes (SC): 10%
- Scheduled Tribes (ST): 5%
Eligibility and Allotment Process
Only individuals belonging to the Goud, SC, or ST communities are eligible to apply for the allotment of A4 liquor shops. Each application must be accompanied by the requisite fee.
The number of A4 liquor shops to be designated for each category within a district will be proportional to the population of that category within the district and the state’s total population of the same category.
Fair Drawal of Lots
The allotment of A4 liquor shops for each category within a district will be determined through a transparent drawal of lots, overseen by the concerned District Collector. This process adheres to the guidelines set forth by the Commissioner/Director of Prohibition and Excise.
Retail Shop Excise Tax (RSET)
The existing Retail Shop Excise Tax for various population segments will continue into the 2023-25 license period, with rates ranging from 50.00 lakhs to 110.00 lakhs, depending on the population bracket.
Special Retail Excise Tax (SRET)
Special Retail Excise Tax will remain consistent at Rs. 5.00 lakhs per A4 liquor shop per annum, as it was in the previous license period.
Payment and Security
Licensees of A4 liquor shops are required to pay the annual RSET in six equal instalments throughout the license period. Additionally, a Bank Guarantee equivalent to 25% of the annual RSET is mandatory.
Shop Turnover Tax
Shop Turnover Tax will be applicable when the cumulative annual purchases of a licensee surpass ten times the annual RSET. The tax rate will be 10% (inclusive of VAT), maintaining a retailer margin of 10% within the 2023-25 license period.
Ethical Operations and Monitoring
Business Hours and Retail Price
The operating hours for A4 liquor shops will be consistent with the 2021-23 license period. The licensee must adhere to the designated retail sale price indicated on the product label.
Retailer’s Margin and Walk-in Stores
The retailer’s margin structure remains unchanged from the previous license period. Additionally, the provision for walk-in stores will continue, allowing A4 liquor shop licensees to transform their shops into walk-in stores for a fee of Rs. 5.00 lakhs per annum.
All A4 liquor shops will be equipped with necessary systems and equipment, ensuring automated updates of daily transactions. CCTV cameras will be installed in counters and premises, with a connection to the central control room of the Prohibition & Excise Department.
Promoting Responsible Consumption
Efforts will be intensified to educate the public about the potential ill effects of excessive drinking. Additionally, steps will be taken to establish de-addiction centers in collaboration with the Medical Health and Family Welfare Department.
In case any A4 liquor shop remains unallocated after the allotment process, the Commissioner/Director of Prohibition and Excise has the authority to permit the establishment of outlets by the Prohibition and Excise Department/Telangana State Beverages Corporation Limited or to re-notify such shops.
In conclusion, the revamped guidelines for the allotment of A4 liquor shops for the 2023-25 license period underscore the government’s commitment to fairness, social empowerment, and responsible consumption. These measures are poised to shape the landscape of liquor retailing in a more equitable and structured manner.