Liquor shops’ licence applications put on ice

The tender process invited by the State Excise department for allotment of liquor shop licences is proceeding rather dull without any “kick” in the district. In the past, as soon as the tender process for wine shops began, thousands of applications would pour in.

The counters would be crowded with syndicates and big businessmen, creating a buzz. But this time, the situation is quite different.

Even ten days after the tender process began, it’s becoming clear that factors like the increase of the application fee to Rs 3 lakh and the slump in the real estate sector are holding businessmen back. In the past, the government earned hundreds of crores just through the application fee alone — but this time, disappointment seems inevitable.

Previously, the district had 32 shops, but this number has increased to 36. However, as of the evening of October 7, not a single application had been submitted for the 36 shops.

Excise officials had estimated that, due to the upcoming local body elections, the number of applications would be double that of previous years. But the lack of applications matching their expectations has left officials puzzled.

Since the deadline is until October 18, they are optimistic that the numbers will increase significantly in the final week. In the past, the government earned Rs 26.82 crore through 1,341 applications in the district.

With transactions in the real estate sector coming to a halt, businessmen are not stepping forward to bid for wine shop tenders like they used to. Their investments are tied up in land rather than cash, which is causing hesitation. Many are adopting a wait-and-see approach out of fear of losing Rs 3 lakh if their tender is unsuccessful.

Speaking to The Hans India, Excise Superintendent Srinivasulu remains hopeful, “There’s still time. Applications will increase toward the end,” he states.

Excise officials stated that this time, a longer duration has been provided for applications, and they expect a surge in the last week. They believe many prospective applicants are using their funds for other needs initially and plan to apply in the final two or three days. Overall, it’s evident that the level of enthusiasm seen in previous years for liquor shop tenders is lacking this time.