AP Government announces new bar policy 2025–28; lottery system to replace auctions : Collector Ranjith Basha

Kurnool: The Government of Andhra Pradesh has introduced the New Bar Policy 2025–28, bringing in sweeping reforms in the allotment of bar licenses across the State. Replacing the earlier auction-based system of 2022–25, the government has now adopted a transparent lottery-based mechanism to ensure fairness, accountability, and financial stability in the sector. In Kurnool district, applications are being invited for 23 bar licenses, stated district collector P Ranjith Basha on Monday.

According to an official gazette notification issued with the approval of the District Collector, applications will be received at the District Prohibition and Excise Officer’s office from August 18 to 26, 2025. The lottery draw will be conducted by the District Collector on August 28, 2025, at the Zilla Parishad conference hall. Successful applicants will be granted licenses by the District Excise Officer following the draw.

The new policy introduces several key features: a reduced application fee of Rs 5 lakh plus a processing fee of Rs.10,000, simplified entry rules that no longer mandate a pre-existing restaurant, and provision for setting up the restaurant within 15 days of license allotment. License fees have also been rationalized—Rs.35 lakh in areas with population up to 50,000, Rs 55 lakh in areas between 50,000 and 5 lakh, and Rs 75 lakh in cities above 5 lakh population. License fee payments can be made in six equal instalments with a single instalment bank guarantee, while business hours have been extended from 10 a.m. to midnight (14 hours).

Officials said the new bar policy is designed to promote transparency by eliminating scope for irregularities, ease financial burden on entrepreneurs, and ensure a level playing field with A4 retail liquor shops as both will procure stock from APSBCL. With lower fees, flexible payment terms, and extended operating hours, the policy is expected to strengthen business viability and consumer convenience while creating equal opportunities for entrepreneurs in both urban and semi-urban areas.

Sudheer Babu, District Prohibition & Excise Officer, joint Collector Dr B Navya, DRO and others participated.