In Tirupati, besides the restriction on setting up a bar at the airport, strict rules will apply in other parts of the pilgrim town.
Published Aug 18, 2025 | 8:13 PM ⚊ Updated Aug 18, 2025 | 8:13 PM
The new bar policy will be effective from 1 September 2025 to 31 August 2028.
Synopsis: The Andhra Pradesh government has announced its New Bar Policy 2025–28, permitting bars at all airports in the state except Tirupati, where restrictions will remain in place along key pilgrim routes to preserve religious sanctity. The policy, effective from 1 September 2025 to 31 August 2028, provides for 840 bars with 10 per cent reserved for the Geetha Kulalu community, rationalises licence fees across population slabs, and simplifies eligibility norms.
The Andhra Pradesh government has unveiled its New Bar Policy 2025-28, permitting bars in all airports in the state except Tirupati. The new bar policy, issued through GO Ms No: 275, aims to make bar operations financially sustainable and transparent. It will be effective from 1 September 2025 to 31 August 2028.
Eligibility criteria have been simplified, removing the precondition of having a restaurant at the application stage. The names of applicants who wish to set up bars will have to be recommended by airport operators.
Successful applicants are required to establish their bars within 15 days. There should be at least four valid applications per bar to ensure a competitive draw.
This condition, inspired by the success of recent retail shop allotments in Andhra Pradesh (averaging 26 applications per shop) and Telangana (131 applications per bar), is expected to encourage healthy competition and discourage speculative applications.
Business hours are set from 10 am to 12 am midnight, and all brands except those priced at ₹99 (180 ml) are allowed. In addition, a Bar Additional Retail Excise Tax (ARET) will be collected later, with licensees purchasing liquor at A4 shop rates and submitting a bank guarantee equal to one annual instalment.
The policy permits bars in Urban Local Bodies (ULBs), their belt areas, and notified tourism centres, excluding religious tourism sites, with provisions for future expansion into Urban Development Authorities, Industrial Corridors, and Special Economic Zones.
In Tirupati, besides the restriction on setting up a bar at the airport, strict rules will apply in other parts of the pilgrim town.
There will not be any bars on key routes from Tirupati Railway Station to Alipiri via RTC Bus Stand, Leelamahal Circle, Nandi Circle, Vishnu Nivasam, Srinivasam, and from Leelamahal-Nandi Circle-Alipiri-SVRR Hospital-SVIMS, in order to preserve the city’s religious sanctity.
Another key highlight of the policy is the allocation of 840 bars, with an additional 10 percent (over and above 840) reserved for the Geetha Kulalu community to promote social equity and empowerment.
These reserved category bars will benefit from a 50 percent concession in licence fees, aiming to ensure inclusivity. The allocation process is designed to be transparent, with all bars distributed through a public draw of lots following an open application invitation.
Licence fees have been rationalised to reflect population slabs: ₹35 lakhs for areas with fewer than 50,000 people, ₹55 lakhs for 50,001 to 5 lakh population, and ₹75 lakhs for over 5 lakh population, with a 10 percent year-on-year increase.
The licence fees are significantly lower than those for retail shop fees with permit rooms, set at ₹65.5 lakhs, ₹79 lakhs, and ₹101 lakhs for the respective population slabs.
This rationalisation, payable in instalments (unlike the single payment of 2024-25), aims to ensure financial viability across regions. The policy’s transparent allotment process and revised fees are designed to benefit both existing operators and new entrants, the press release said.
Payments can be made in six equal instalments, backed by a bank guarantee for one instalment, easing financial burdens on operators. Application fees are standardised at ₹5 lakhs plus a ₹10,000 processing fee, a reduction from the previous policy’s higher slabs (₹7.5 lakhs and ₹10 lakhs), applicable across all population categories.
The new policy contrasts with the 2022-25 framework, where 44 licences remained unallotted despite re-auction attempts, and licence fees in 2022-23 ranged from ₹1.42 crore in Bapatla to ₹1.89 crore in YSR District.
(Edited by Dese Gowda)
