Andhra Pradesh opens airport bar licences, exempts Tirupati under amended Excise Rules 2025

The AP government has notified guidelines to grant bar licences at airports across the state, excluding Tirupati. The framework, benchmarked against Maharashtra, Telangana, Karnataka and Delhi T3, amends the AP Excise Rules 2025 and unlocks a new airside F&B retail category for operators and liquor brands.

— Source publishedSun, 28 Jun, 2026, 09:01 IST·First seen Sun, 28 Jun, 2026, 09:08 IST·Source The Hindu BusinessLine

What happened

Government of Andhra Pradesh · Andhra Pradesh has issued guidelines for granting bar licences at airports in the state, excluding Tirupati Airport, amending AP

Why this matters

Liquor brands and travel-retail concessionaires should evaluate partnership, JV, or exclusive supply deals at AP airports now, benchmarking commercial terms against Delhi T3, Mumbai and Hyderabad precedents before incumbents lock in licences.

What to watch

  • Notification of licence fee schedule and tender terms
  • First bar licence award at Vizag international airport
  • Any PIL or religious-body challenge citing Tirupati precedent
  • Pricing parity rules vs off-airport MRP (duty-paid vs duty-free framing)
  • Operating-hour and serving-size restrictions in final rules
  • Reciprocal moves by Kerala/TN excise departments
  • Map AP airport footfall (Vizag, Vijayawada, Rajahmundry, Tirupati, Kurnool) and dwell-time vs licence-fee breakeven
  • Track concessionaire RFP timelines from AAI and GMR-adjacent operators
  • Engage spirits brand travel-retail teams on SKU plans for AP airside
  • Model excise revenue uplift vs Maharashtra/Telangana per-passenger benchmarks
  • Flag the Tirupati exemption as a template risk for other religious-tourism airports