Hyderabad, August 6, 2025 – The Telangana government has decided to increase the application fee for retail liquor shop licenses from ₹2 lakh to ₹3 lakh starting December 1, 2025. This move comes as part of efforts to boost state revenue amid slower-than-expected financial growth.
Despite the fee hike, the number of liquor shops across the state will remain unchanged at 2,620. The licensing period for these outlets will also stay the same—two years from the beginning of the new excise year (December to November).
The decision was finalized during a recent Cabinet meeting, and the new liquor policy is expected to be announced soon. A senior official explained that increasing the number of liquor shops might lead to criticism that the government is encouraging alcohol consumption, which is why the count has been kept steady.
The hike is expected to bring in substantial additional revenue, especially since the application fee is non-refundable. During the last auction in 2023, over 98,000 applications were submitted for the 2,620 outlets—an average of more than 40 applications per shop. The government earned nearly ₹2,000 crore just from application fees.
With the fee now increased by ₹1 lakh, officials expect revenues could go up by another ₹1,000 crore—if the same level of interest continues.
From April to June this year, the state’s excise revenue stood at ₹4,595 crore—just 16.6% of the ₹27,623 crore target set for the full year. The revised application fee is part of a broader plan to close that gap and meet financial commitments.
