The Andhra Pradesh government has approved a dedicated licensing framework permitting 24-hour liquor shops and bars at airports across the state, opening new commercial opportunities for airport hospitality and retail operators.
The policy, cleared by the state cabinet, allows airport bars and liquor retail outlets at all airports in Andhra Pradesh except Tirupati Airport. Licences will be issued by the Excise Department based on recommendations from airport operators, making operator approval a prerequisite for applicants.
Under the new framework, airport bars at airports handling 20 lakh or more annual passengers will attract an annual retail excise tax of ₹25 lakh, while those at airports with lower passenger traffic will pay ₹15 lakh. Airport liquor shops will be subject to an annual excise tax of ₹1 crore.
The government has also permitted round-the-clock operations for both airport bars and liquor shops, subject to airport security and operational protocols. Each licence will allow up to three serving points for bars and three retail counters for liquor shops.
Licence validity will be aligned with the tenure of the agreement between the airport operator and the licensee or the standard licence period, whichever is shorter. Tax liability will be calculated proportionately for licences issued for a partial term.
As part of the revised regulations, the government has prescribed an application fee of ₹2 lakh for airport liquor shops and ₹5 lakh for airport bars. Licences will be granted following verification by district excise authorities and compliance with existing liquor trade regulations.
Airport liquor shop licence holders will not be permitted to operate permit rooms, while all other regulatory conditions applicable to liquor retail and bar operations will continue to apply.
From an airport hospitality perspective, the move is expected to diversify non-aeronautical revenue streams by expanding food and beverage and retail offerings within terminal infrastructure. The policy framework will be reviewed after three years, based on passenger traffic and operational performance.
