The Telangana Excise Department has announced a major revision of liquor licence policy, with effect w.e.f 1st Dec. 2025. The new notice also increases the non-refundable application fee to 3 lakh Indian rupees as compared to 2 lakh Indian rupees and allows companies/ partnership firms to apply in association with individuals. There will also be a limit of liquor shops dealing in retail to a total of 2,620.
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Licences registered in the new regime shall last 2 years that is December 1, 2025, to November 30, 2027-plans to extend the period to 3 years have been shelved.
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Lottery System, Community Quotas, and Revenue Goals
Licences will be allotted through the lottery system on September 1, in the presence of district collectors. Before the draw, the applications are subject to high scrutiny. The status of the reservation structure has not changed: 15 percent both to Goud community and Scheduled Castes, and 5 percent to Scheduled Tribes.
According to this new policy, the state expects to generate around 1,400 crores in revenue, 1310 crore in excise tax (RSET/ coaching) of retail shops at 50 lakh per shop, and also the additional 78.6 crore in fees of increased licence charges. Also, special RSET is required to be paid each year by every outlet of 5 lakh.
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Reform Focus: Transparency and Inclusion
The most pronounced feature of the new framework, according to the officials, is that transparency, expanded participation, and sustained excise revenue targets are achieved which are never met by increasing the number of active outlets.
Why It Matters
Increased Access: Telangana increases access by making corporate entities and partnerships able to come on board.
Improved Allocation: This is because a lottery system provides a sufficient possibility to allocate fairly- but with vetting.
Increased Revenue: Higher taxes and categorical excise state a great deal of revenue into the state treasury.
Social Equity: The reserved quotas ensure there is no overrepresentation of the backward people.