Srinagar: The Airports Authority of India is set to open its first liquor shop at Srinagar International Airport as part of a central government initiative to install such outlets at all aerodromes across the country.

The plan is to open the outlet on New Year's Day, sources said, adding that no fewer than 50 firms from various states had shown interest in the proposal.

Kashmir is not dry officially but an unofficial ban was imposed by militants in 1990 on sale and consumption of liquor.

Liquor is banned in Islam, which explains the broader societal disapproval for booze in the Valley.

The state has 223 liquor vends - a rich source of revenue for the government - but most of them are in Jammu.

Officials said the Valley has seven liquor vends - four wine shops and three bars in hotels and restaurants, all in Srinagar district.

Sharad Kumar, director, Srinagar airport, said the decision to set up the liquor shop was part of a central government plan to have such vends at all airports. "It will help us (the state) attract tourists. They would face difficulty in getting it here but now they can buy it here on arrival and consume it at their places," Kumar told The Telegraph.

The airport, the officer said, has never had such a facility in the past.

Religious preacher Molvi Ghulam Rasool Hami, who has opposed such initiatives in the past, vowed to hit the streets and challenge the move in court. "They (the government) are doing it in the name of tourism promotion but they have no regard for local sensitivities," he said.

In 2010, the then Omar Abdullah government had decided against issuing fresh liquor licences. The National Conference leader had intervened when Vijay Mallya announced plans to restart cultivation of hop - used in making beer - in 2009, nipping the liquor baron's plans in the bud.

Sources said the current PDP-BJP government has not opened even a single new liquor shop in its three years of rule. Some licences were, however, issued for opening of hotels and restaurants with bars.

The government had last year ruled out banning liquor in the state, saying it should be left to people whether they want to have it or not.