After a lots of research and analysis about the Liquor Business, the Government of Andhra Pradesh is said to be leaning towards the "Sales Strategy" of Tamil Nadu. To be precise, the new model enables the government to run the liquor shops on their own, instead of licensing them to contractors/mediators.

Getting into the details, AP Govt has done a lot of groundwork before looking at the revenue of liquor business as a source of income for the newly formed state. And to maximize the revenue out of this business, AP might follow the style of Tamil state in selling the alcohol. In TN, the shops are run by the Government itself and most of the brands would belong to the local breweries. Though this business model has had it's share of negative implications, it brings more than 20,000 crores of annual revenue for the government.

As the existing license of more than 4,000 liquor shops in Andhra Pradesh expires on June 30th, the new model might be applicable with effective from July 1st. With the new model, the government may lose the Licence Fee of 50 lakhs from every shop, but can easily earn a revenue of at least 1 crore or 1.5 crore from each one of them. Looking at the recent records, it was clear that the new model has a lot of earning potential. For example, if we look at the time period of 2013-2014 - the undivided AP earned a mere 7,000 crore of excise revenue and Tamil Nadu earned more than 21,000 crores in the same period from liquor sales in their respective states.

Though this idea is completely in contrast to the promises made by TDP during the 2014 elections, the ruling party is in favour of bringing this into action. An official confirmation is awaited though!