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Under the policy, beach shacks will be permitted to serve only low-alcohol beverages, including beer, craft beer, wine, sparkling wine, and ready-to-drink (RTD) beverages. Sale of Indian Made Foreign Liquor (IMFL) and other hard liquors will not be allowed.

Initially, two beach shacks each at Suryalanka and Visakhapatnam will be permitted on a pilot basis. Eligible applicants include star hotels, tourism resorts, and Tourism Department-registered establishments possessing private beach land or land allotted by competent authorities.

Each shack must have a plinth area of 1,000 to 1,500 square feet, adequate parking, sanitation facilities, a licensed kitchen, safety infrastructure, and eco-friendly construction. Alcohol service will be permitted from 10 a.m. to 8 p.m.

The annual Retail Excise Tax has been fixed at Rs. 7.5 lakh, with a 10 per cent annual escalation. The pilot project will be reviewed after one year to assess its impact on tourism, employment, environmental sustainability, and public safety before considering expansion to other beaches in the State.