Hyderabad | October 9, 2025:
The Telangana government has been left surprised as the response to new liquor shop tenders has fallen drastically this year. Despite the Excise Department’s aggressive campaign urging traders to apply, only 1,581 applications have been received so far — a massive drop from 1.31 lakh applications last year.
Excise Officials Stunned by Poor Response
The state government had invited fresh tenders as the existing licenses for liquor outlets are nearing expiry. Excise officials had expected a huge turnout of applicants similar to the previous year, projecting around ₹3,000 crore in revenue from tender fees.
However, two weeks after opening the application window, the response remains *unexpectedly low, leaving officials puzzled. Even appeals by Excise officers claiming that *“no business is more profitable than liquor trade” failed to attract applicants.
Steep Hike in Application Fee Discourages Traders
One major factor being blamed for the poor response is the *sharp increase in the application fee. Last year, the fee stood at **₹2 lakh, but it has now been *raised by nearly 50% to ₹3 lakh.
Traders argue that the hike, coupled with increasing operational costs and stricter regulatory norms, has made the business less attractive and riskier than before.
A senior Excise official, speaking anonymously, said, “The government had anticipated at least 10,000 applications a day to meet its financial targets, but that has not happened.”
Deadline Pressure Mounts on the Department
With only *10 days left for the tender submission deadline, the department is under intense pressure to meet its revenue expectations. Officials are trying to *motivate traders across districts through campaigns and outreach efforts, but results remain minimal.
Compared to previous years, there has also been a notable drop in applications from neighboring states like Andhra Pradesh and Karnataka, which once contributed significantly to the tender pool.
Expert Opinions and Industry Reactions
Economic observers say the *market slowdown, strict excise policies, and *higher competition in urban zones may have discouraged many small-scale bidders. Industry analysts predict that unless the government reconsiders the tender fee hike, participation may remain well below expectations.
Key Takeaways
- Telangana Excise Department received only 1,581 liquor tender applications this year.
- 1.31 lakh applications were filed last year — a drastic fall.
- Application fee hiked from ₹2 lakh to ₹3 lakh.
- Government expected ₹3,000 crore revenue, now under threat.
- Drop in participation from Andhra Pradesh and Karnataka.