The Andhra Pradesh government has introduced a new bar policy for 2025-28, permitting the establishment of bars at all airports within the state, with the exception of Tirupati. This policy, enacted through GO MS Number 275, aims to make bar operations financially sustainable and transparent. The policy will be effective from September 1, 2025, to August 31, 2028.
The new policy simplifies the process of opening bars. It no longer requires a pre-existing restaurant. However, prospective bar owners must receive a recommendation from the airport operator. Successful applicants must then commence operations within 15 days. A minimum of four valid applications are required for each bar to ensure a fair lottery (draw).
The policy prohibits bars from being established in religious tourism sites. Special rules apply to Tirupati, where airport bars are not permitted, and stringent regulations will be in place throughout the city. Specifically, bars will be strictly prohibited on the route from Tirupati railway station to Alipiri (including RTC bus stand, Leelamahal Circle, Nandi Circle, Vishunu Nivasam, and Srinivasam) and on the Leelamahal-Nandi Circle-Alipiri-SVRR Hospital-SVIMS route, to preserve the city’s religious sanctity.
A significant aspect of the policy involves the allocation of 840 bar licenses. Additionally, 10% of these bars will be reserved for the Geeta Kulalu community to promote equal opportunities. These reserved bars will also benefit from a 50% reduction in license fees. The license fees are determined based on the population of the area:
* Areas with a population less than 50,000: ₹35 lakh
* Areas with a population between 50,001 and 5 lakh: ₹55 lakh
* Areas with a population exceeding 5 lakh: ₹75 lakh.
These fees will increase by 10% annually. Installment payments are also permitted, aiming to ensure financially sustainable operations in all areas. The fees can be paid in six equal installments, with a bank guarantee required for one installment. The application fee is set at ₹5 lakh for all applicants, with a processing fee of ₹10,000.
All bar licenses will be awarded through a public lottery (draw of lots) to ensure fairness and transparency. A minimum of four applicants is needed to be included in the draw.