AMARAVATI – Chaired by Chief Minister N. Chandrababu Naidu, the Andhra Pradesh cabinet on Thursday, January 8, 2026, approved a series of significant policy changes aimed at revenue generation, price parity in the liquor trade, and positioning the state as a premier logistics hub.
Information and Public Relations Minister K. Parthasarathy briefed the media on the key decisions, highlighting a focus on balancing consumer interests with industrial growth.
1. Liquor Policy Overhaul: Price Hikes and Bar Reforms
The cabinet introduced a marginal price hike while addressing long-standing “disparities” between retail shops and bars.
- The Hike: A ₹10 increase in Maximum Retail Price (MRP) across all sizes of India-Made Foreign Liquor (IMFL) and foreign liquor.
- Exemptions: To protect low-income consumers, the hike does not apply to:
- The economy 180 ml IMFL bottles (priced at ₹99).
- Beer, Wine, and Ready-to-Drink (RTD) beverages.
- Bar Parity: The government withdrew the Additional Retail Excise Tax (ARET) on bars. This move aims to align bar prices with retail shop prices, reducing the financial burden on bar owners by ₹340 crore annually.
- Retailer Margins: Margins for retailers (including on the ₹99 bottles and beer) will increase by approximately 1% of the MRP.
Revenue Impact: The state expects an annual revenue windfall of ₹1,391 crore from these adjustments.
2. Microbrewery Expansion: Boosting Tourism
In a move to strengthen the hospitality and tourism sectors, the cabinet expanded the geographical scope for microbreweries.
- New Zones: Microbreweries are now permitted within 5 km of municipal corporation limits.
- Tourism Focus: Permissions are extended to all notified tourist centers and hotels with a 3-star rating and above, regardless of their location.
- Objective: This is designed to attract investments in “lifestyle hospitality” and enhance the “Brand AP” experience for global travelers.
3. Logistics Revolution: APLINC & Alternative Investment Fund
The cabinet cleared a massive infrastructure roadmap to transform Andhra Pradesh into the “Gateway of the East Coast.”
- APLINC: The formation of the Andhra Pradesh Logistics Infrastructure Corporation (APLINC) was approved. It will act as a holding company to integrate ports, airports, highways, and cold-chain networks.
- Logistics Fund: A first-of-its-kind AP Logistics Fund (an Alternative Investment Fund or AIF) will be established to mobilize institutional capital.
- State Role: The government will be the anchor sponsor with a 10–20% contribution.
- Management: A professional Asset Management Company (AMC) and Trustee will be appointed for governance.
4. Other Key Approvals
- AMNS Port: Approved changing the name of ArcelorMittal Nippon Steel India Pvt. Ltd. to AMNS Ports Rajayyapeta Pvt. Ltd. for a captive port project in Anakapalli.
- Space City Allotment: Allotted 150 acres in Tirupati district at a subsidized rate for a rocket launch vehicle and engine manufacturing unit.
- Industrial Incentives: Special incentives were granted to Ramco Cements for a ₹1,500 crore expansion in Nandyal and Shirdi Sai Electricals for a facility in Kadapa.
- Student Welfare: Administrative approval for ₹945 crore to procure student kits (Classes I to X) for nearly 40 lakh students.