The Director of Excise and Prohibition on Wednesday released the guidelines for the establishment and operation of bars in beach shacks to strengthen the regulatory framework that was introduced through G.O.Ms.No. 470, dated November 10, 2016, and technical standards prescribed under G.O.Ms.No. 235 issued in June 2017.

The objectives of the excise policy guidelines for grant of the said licences were to establish a formal, transparent regulatory mechanism governing low-alcoholic beverage service in beach shacks at designated beach areas under the AP Excise Act, 1968, AP (Regulation of Trade in IMFL, FL) Act, 1993, and the rules made thereunder with public safety and social considerations, to promote livelihood opportunities and local employment generation in the coastal regions through regulated, tourism linked enterprises, create a transparent and accountable licensing process with defined roles for the Prohibition & Excise and Tourism Departments, Coastal Regulation Zone Management Authority, District Administration and local bodies, and to position A.P. as a vibrant coastal tourism destination and improve the overall experience infrastructure available to domestic and international visitors along the State’s coastline. 

G.O (MS No.362) issued by Principal Secretary (Revenue-Excise) Mukesh Kumar Meena mentioned that under the policy, a beach shack has been defined as a small semi-permanent structure located along the beachfront, where food is served, constructed using temporary and eco-friendly materials (excluding reinforced concrete construction), situated on a land parcel allotted by the AP Tourism Development Corporation, or any other competent authority, or on private beach land and licensed under AP Excise (Grant of Licence of selling by Bar and Conditions of licence) Rules, 2025 for sale of permitted alcoholic beverages.

Star hotels, tourism resorts and Tourism Department registered establishments located along the beaches having private beach land parcels of their own or beach land parcels allotted by APTDC or any other competent authority for beach shack purpose are eligible to apply for licences.

The Excise Department will initially allow two shacks each at Suryalanka and Visakhapatnam on a pilot basis.