Telangana hikes liquor licence fees, opens bids for firms in new policy

The Telangana excise department has raised liquor licence fees for retail operations in the state, according to a notification issued on August 20. The department has also introduced stricter scrutiny while keeping the number of retail outlets unchanged at 2,620.

The new licences will be valid for two years, from December 1, 2025, to November 30, 2027, following the expiry of the current permits this November. The non-refundable application fee has been increased from ₹2 lakh to ₹3 lakh. For the first time, companies and partnership firms will be allowed to apply, expanding eligibility beyond individuals.

Licences will be allotted through a lottery system on September 1, overseen by district collectors after application scrutiny. Reservations remain in place, with 15 percent of shops reserved for the Goud community, 10 percent for Scheduled Castes, and 5 percent for Scheduled Tribes.

The government expects to generate around ₹1,400 crore through this round of licensing—₹1,310 crore from the retail shop excise tax at a base slab of ₹50 lakh per shop, ₹78.6 crore from higher application fees, and additional revenue from a mandatory annual special excise tax of ₹5 lakh per outlet.