Archive · 23 Dec 2025
Karnataka to Auction 569 Unused Liquor Licenses
The Karnataka government is selling 569 unused liquor shop and bar licenses through an online auction.
This is expected to make about Rs 1,000 crore.
People who want to bid must pay a fee to register and then bid online.
Some licenses are reserved for certain groups like Scheduled Castes and Tribes.
The auction will happen in January 2026.
Meanwhile, Andhra Pradesh is reviewing its liquor policy to focus on public health and transparency.
They are considering new measures like a Liquor Identification Number (LIN) and a Deposit Return Scheme (DRS) to protect the environment.
The state aims to reduce unauthorised liquor outlets and increase digital payments for liquor sales.
Karnataka to auction 569 unused liquor licenses, including 477 retail and 92 bar/restaurant licenses.
Auction expected to generate Rs 1,000 crore in additional revenue for the state.
Bidding process is transparent and electronic, with registration open now and live bidding from January 13-20, 2026.
Bidders must pay a registration fee of Rs 1,000 plus GST and a non-refundable application fee of Rs 50,000 per license.
Andhra Pradesh reviewing liquor policy to focus on public health and transparency, considering measures like LIN and DRS.
- Who
- Karnataka State Excise Department and Andhra Pradesh Chief Minister N. Chandrababu Naidu
- What
- Auction of unused and unallotted retail liquor licenses in Karnataka and review of liquor policy in Andhra Pradesh
- When
- January 13-20, 2026 (Karnataka auction) and ongoing (Andhra Pradesh policy review)
- Where
- Karnataka and Andhra Pradesh, India
- Why
- To generate additional revenue for Karnataka and to achieve healthy and regulated growth in Andhra Pradesh
Revenue Generation
Regulation and Public Health
Primary Objective
Revenue Generation
The auction aims to generate additional revenue for the state, expected to be Rs 1,000 crore.
Regulation and Public Health
Andhra Pradesh's liquor policy focuses on healthy and regulated growth, treating liquor like any other regulated product with public health and transparency at the core.
Policy Approach
Revenue Generation
Karnataka's approach is primarily financial, with a transparent and electronic bidding process.
Regulation and Public Health
Andhra Pradesh is considering comprehensive reforms, including the introduction of a Liquor Identification Number (LIN) and a Deposit Return Scheme (DRS) for environmental protection.
- Total Licenses
- 569
- Retail Liquor Shop Licenses
- 477 (CL-2A)
- Bar and Restaurant Licenses
- 92 (CL-9A)
- Registration Fee
- Rs 1,000 plus GST
- Application Fee per License
- Rs 50,000 (non-refundable)
- Auction Dates
- January 13-20, 2026
- Expected Revenue
- Rs 1,000 crore
- Excise Revenue (AP)
- Rs 7,041 crore (October 2024 - October 2025)
- Projected Revenue (AP)
- Rs 8,422 crore (December 18, 2025 - March 2026)
- Liquor Sales Growth (AP)
- 4.52% (April 1 - December 17, 2025)
- IMFL Sales Growth (AP)
- 19.08%
- Beer Sales Growth (AP)
- 94.93%
- Per Capita Consumption (AP)
- 2.77 litres
- Per Capita Consumption (Telangana)
- 4.74 litres
- Digital Payments (AP)
- 34.9%
Sources
Karnataka To Auction Unused Liquor Licenses, Likely To Earn Rs 1,000 Crore
Andhra Pradesh to study Haryana policy to curb ‘belt shops’
AP Liquor Policy’s Focus on Healthy Growth, Not Revenue Alone: CM Naidu
Naidu calls for structural reforms in excise policy
