Inspired by the Tamil Nadu Govt's model, AP Government had earlier planned to set up its own retail liquor outlets to generate enough revenue. Even in the new liquor policy announced four months ago, There was a provision to keep 10 percent of liquor outlets in Government's control to avoid violation of maximum retail price (MRP) by private vends.
Earlier, AP Government retainer 438 out of 4,380 liquor outlets in the state and allotted the rest to private parties for a fat Application Fee & License Fee. On Friday, Government handed over 368 outlets of them to private players and even a notification will be issued for the sale of remaining 70-odd vends.
Explaining the reasons behind the decision, Authorities say state-run liquor outlets generated much less revenue than private ones and the difference is 50%. Another reason could be that TDP Loyalists warned Chief Minister Chandrababu Naidu about the wrong indications it would send to the public. State Government is considering the proposal to hike penalty from Rs 1 lakh to Rs 5 lakh for MRP violations. If an Outlet was found violating the norms thrice, The licence will be terminated permanently.