How Did Telangana Excise Dept Earn ₹2,639 Crores Without Selling A Single Alcohol Bottle?

by Tooba Shaikh
How Did Telangana Excise Dept Earn ₹2,639 Crores Without Selling A Single Alcohol Bottle?

The Telangana Excise dept has managed to collect a whopping ₹2,639 crores. And it managed to do so without selling a single bottle of alcohol. This is because of the applications for licence to vend alcohol, which charge exorbitant fees. The fee is ₹2 lakhs per application and it is non-refundable. The department received around 1.32 lakh applications for the licence which enabled them to collect such a huge amount.

Telangana Excise Dept Earns ₹2,639 Crores

Telangana excise dept
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According to an article recently published by NDTV, there will be a total of 2,620 liquor licenced liquor shops. Through district-wise lottery selection, the authorities will select those who will receive the licence to vend alcohol. This will be done on Monday, the 21st of August.

The article mentions that those who do win the licence will have to pay a fee anywhere between ₹50 lakhs to ₹1.1 crores per annum. This fee will depend on the population of the area in which the shop is situated.

For instance, according to the rules, if the shop is in an area which has a population of 5,000 or less, then the annual fee will be ₹50 lakhs. However, if the population is more than 20 laks, then the fee will be ₹1.1 crore.

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615 Shops In Hyderabad; Highest In Serilingampally

Telangana excise dept
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The rules also dictate that one-sixth of the annual licence fee should be paid by the 23rd of August. Even though the amount seems like a lot, the article says that it is a small fee when compared to the profit margins.

For ordinary alcohol brands, the shops can make as much as 27 per cent of profit. When it comes to premium brands, however, the shops can make around 20 per cent.

Of the 615 alcohol shops in Hyderabad, the highest will be in Serilingampally. There is also a reservation of 30 per cent for disadvantaged communities. 15 per cent of the licences will be given to the Gowda community and 10 per cent to Scheduled Castes.

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