Alcobev industry associations urge Telangana govt to clear over Rs 3,900 crore liquor payment backlog

(Representative image)

• Alcohol industry urges Telangana to clear Rs 3,900 crore overdue payments.
• Delayed payments threaten supply chains, jobs, and investor confidence
• Groups urge return to 45-day payment cycle to safeguard revenue and jobs

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Three major alcoholic beverage industry associations have called on the Telangana government to immediately settle outstanding payments exceeding Rs 3,900 crore, warning that prolonged delays threaten supply chains and investor confidence.

The Brewers Association of India, International Spirits and Wines Association of India, and Confederation of Indian Alcoholic Beverage Companies has jointly raised concerns about regarding dues owed by Telangana State Beverages Corporation Limited.

The associations have alleged that nearly Rs 900 crore has remained unpaid for over a year, despite the state's excise revenues climbing from approximately Rs 9,000 crore in 2014 to nearly Rs 38,000 crore in 2023-24.

A statement by the associations stated that alcoholic beverage sector generates more than a third of Telangana's tax revenues, contributing Rs 2,300-2,600 crore monthly -- the highest proportion among Indian states. The industry supports roughly 70,000 jobs across breweries, distilleries, packaging, logistics and retail operations, they said.

Industry representatives highlighted that the state collected over Rs 3,000 crore through liquor retail license fees in October 2025 alone, with December revenues reaching record levels. However, industrial investment approvals through TG-iPASS dropped by more than half, falling from Rs 28,100 crore in 2023-24 to Rs 13,730 crore in 2024-25.

The associations emphasized that restoring the contractual 45-day payment cycle is essential for maintaining supply continuity and protecting employment. They argued that honouring existing commitments would strengthen Telangana's reputation as a dependable business destination and preserve its substantial revenue streams.