The Congress government is exploring new measures to satisfy ruling party leaders and boost revenue from liquor sales. It is considering issuing licenses for A4 elite liquor malls without formal requests and increasing the number of shops. Ironically, the same Congress leaders, including Revanth Reddy, previously criticized the BRS government over liquor revenue.
Discussions between the Excise Department and the state government have already taken place, with authorities citing the national ratio in excise rules to justify the move. If implemented, this policy could lead to the opening of over 10,000 new liquor outlets across the state.
In August 2023, the previous government had already notified and finalized tenders for issuing A4 liquor licenses, which came into effect on December 1 of the same year. However, the Congress party assumed power shortly afterward and sought to halt the expansion of liquor shops.
Due to policy constraints, the terms set by the former government remained in force, preventing any changes until November 31, 2025. As a result, despite being in power, Congress leaders have been unable to intervene in liquor licensing matters, leading to growing frustration among ruling party members.
Reportedly, the matter has been escalated to the top leadership, with instructions given to the excise officials to explore alternative avenues. According to sources, officials have now proposed using the national ratio, which allows one liquor shop for every 14,000 people. With Telangana’s current population of 3.5 crore, this would mean 13,300 shops could be set up.
Currently, the state has 2,620 liquor shops, and the Excise Department has submitted a report suggesting an additional 10,680 shops could be opened. This report is now being reviewed for legal advice, with some recommendations already made.
In an effort to increase revenue, the Cabinet sub-committee on excise revenue sources previously held extensive discussions. The excise department has been tasked with generating funds to support the government’s six guarantees, primarily through liquor sales.
In 2022, the state earned Rs. 32,000 crores from 2,620 A4 liquor shops and 1,200 bars and clubs, rising to Rs. 35,000 crores in 2023. The government has set an ambitious new target of Rs. 45,000 crores, with officials being urged to ramp up liquor-related revenue by an additional Rs. 10,000 crores.