The Andhra Pradesh Cabinet approved the Bar Policy 2025–28, based on the recommendations made by the Cabinet Sub-Committee, on Wednesday.
As part of the new policy, which will come into force after August 31, the bars in the State will remain open from 10 a.m. to 11 p.m. The Cabinet also cleared a proposal to allow permit rooms, which were disbanded during the previous YSR Congress Party’s (YSRCP) tenure.
Disclosing the details of the Cabinet meeting, Information and Public Relations (I&PR) Minister Kolusu Parthasaradhi said that the Cabinet Sub-Committee had studied the bar policies of other States and engaged with the stakeholders before finalising its recommendations.
The Bar Policy 2022–25, which is set to expire on August 31, was based on an auction system and saw the issuance of licences to 840 bars. “The current policy led to several operational difficulties. Hence, the government decided to introduce a new bar policy to address these challenges,” said Mr. Parthasaradhi.
The new policy allows bars to operate from 10 a.m. to 11 p.m., offering greater flexibility for licence holders and consumers. It was noticed that more than 2.07 lakh law and order cases were registered due to open consumption of liquor. To address the issue, the Cabinet decided to allow permit rooms, with a maximum capacity of 1,000 sft, the Minister said.
The newly approved policy also proposes a shift from the auction system to a lottery-based allocation, which will be implemented only in the areas where a minimum of four applications are received per bar licence available.
Licensing fee
The new licence period will be effective from September 1, 2025 to August 31, 2028. The application fee will be ₹5 lakh. The licence fee would be ₹35 lakh if the population is less than 50,000; ₹55 lakh if the population is between 50,000 and 5 lakh; and ₹75 lakh if the population is more than 5 lakh.
At least four applications must be received for each bar. To ensure fairness and increased participation, the government is considering allocating bar licences through a lottery system, moving away from the auction method followed during the YSRCP’s tenure.
To promote social welfare and inclusivity, the government has reserved 10% of bar licences for toddy tappers (kallu geetha workers) at 50% of the standard fee.
This measure is aimed at supporting the livelihoods of traditional workers within the excise ecosystem, the Minister added.