Andhra: New Bar Policy brings big relief to bidders in Andhra Pradesh

VIJAYAWADA: The new bar policy announced by the State government seems to have turned out to be a boon for bidders.

The reforms introduced in the policy aim to make bar operations financially sustainable by drastically reducing the licence fee and allowing payment in six instalments, unlike the earlier system, where bidders had to pay the total bid amount at once.

According to an official release, the drastic reduction in bar licence fees provides great relief to bidders, making it more attractive for new applicants.

For example, the bar license fee in Kadapa was reduced to Rs 55 lakh from Rs 1.97 crore earlier. Similarly, the bar licence fee was reduced to Rs 55 lakh from Rs 1.79 crore in Anantapur, to Rs 55 lakh from Rs 1.72 crore in Tirupati, and to Rs 55 lakh from Rs 1.4 crore in Ongole.

Additionally, the licence fee in Salur, Parvatipuram Manyam district, was slashed to Rs 35 lakh from Rs 71 lakh. The new policy also offers the convenience of paying the license fee in six instalments.

The new bar policy has also reduced the application fee to a uniform Rs 5 lakh across the State, whereas previously, bars in urban local bodies paid more than this amount.

For instance, in cities like Vizag, Vijayawada, and Guntur, the application fee was Rs 10 lakh for each application, while in towns like Madanapalle and Ongole, it was Rs 7.5 lakh.

Commissioner of Prohibition and Excise Nishant Kumar said, “The bar licence will be allotted through a public draw of lots to encourage healthy competition.

The licence fee structure has been rationalised to make bar operations viable. The fee is fixed at Rs 35 lakh for towns with a population up to 50,000, Rs 55 lakh for towns with a population above 50,000 and up to five lakh, and Rs 75 lakh for cities with a population above five lakh.”