metro india news  I hyderabad

Telangana’s Excise Department is confronting an unprecedented shortfall as its latest round of retail liquor shop applications hit an all-time low. With only two days left, less than 20 percent of the expected one lakh applications have been received across the state. Senior officials projected a windfall exceeding Rs 3,000 crore.

This dramatic slowdown stands in sharp opposition to the market frenzy witnessed in 2023, when the department fielded over 1.32 lakh applications for roughly 2,600 shops, generating a record-setting Rs 2,640 crore in non-refundable revenue. The hefty application fee, which has been hiked by 50 percent, jumping from Rs 2 lakh to a non-refundable Rs 3 lakh is the reason for the lukewarm response.

Single individuals, are now drastically limiting their exposure. They cite challenging returns on investment due to the high application cost, coupled with existing issues like stiff competition, high rents, and increasing maintenance costs. This financial calculus is further complicated by the licence period; many prospective bidders argue that the response would have been fundamentally different had the government increased the licence term to three years instead of maintaining the two-year period for the enhanced Rs 3 lakh fee.

Potential bidders in rural region are reportedly diverting their financial focus towards upcoming local body polls. Furthermore, a crucial element missing this time is the once-robust participation from Andhra Pradesh.

The 2023 auction saw an influx of AP bidders due to a restrictive liquor policy in their home state, driving up competition in Telangana’s neighboring districts. However, with the Chandrababu government in AP implementing a new policy mirroring that of Telangana, many former bidders are now operating within their own state.

While Excise authorities remain publicly optimistic about a last-minute rush, the poor reception thus far means government higher-ups may soon be compelled to review the situation, potentially leading to a highly anticipated extension of the deadline (October 18 at present) if the target of one lakh applications remains out of reach.