AP unveils new bar Policy 2025–28

The Government of Andhra Pradesh has announced the New Bar Policy for 2025–28, introducing major reforms in the allotment of bar licences across the State. Replacing the auction-based system of 2022–25, the government has adopted a transparent lottery mechanism aimed at ensuring fairness, financial stability, and wider social inclusion.

According to State Excise Commissioner Nishanth Kumar, who briefed the media recently, the new policy (issued under GO Ms 275) permits a total of 840 bars, with 10 percent of licences reserved for members of the Geetha Kulalu community. These reserved bars will receive a 50 percent concession in licence fees to promote social equity and empowerment.

All bar licences will be allotted through a public draw of lots, requiring a minimum of four valid applications per licence to encourage healthy competition. The licences will be valid for three years, from September 1, 2025, to August 31, 2028.

The revised licence fee structure has been rationalized, Rs 35 lakh for towns with populations up to 50,000, Rs 55 lakh for areas with populations between 50,001 and 5 lakh, and Rs 75 lakh for cities with populations above 5 lakh. Fees will increase by 10 percent annually, with the option for licensees to pay in six instalments backed by a bank guarantee.

Bars will be permitted in urban local bodies, notified tourism centres - excluding religious destinations, industrial corridors, metropolitan development areas, and SEZs, depending on demand. However, restrictions remain in Tirupati, where no bars will be allowed on routes to Alipiri and Tirumala.

The commissioner added that rationalised fees would help avoid the situation faced in 2022–23, when 44 licences went unallotted even after re-auctions. The policy, he said, provides equal opportunities for existing operators and new entrants while ensuring a sustainable bar sector.