Uttar Pradesh has successfully attracted significant investments from the private and cooperative sectors, totaling more than Rs 5,400 crore, for the establishment of 31 new alcohol distillation plants across the state.

According to Sanjay Bhoosreddy, Additional Chief Secretary of Sugar and Excise in Uttar Pradesh, these newly established factories will have a combined capacity to distill 1.45 billion liters of alcohol. Currently, 18 of these plants, with a total capacity of 968 million liters, have already commenced commercial production.

Bhoosreddy highlighted the positive impact of these greenfield units, stating that they will generate employment opportunities for 8,267 individuals. With over 5,000 youths already employed, the proposed projects have injected an investment of Rs 3,530 crore.

Promotion

The state government has been actively expanding manufacturing capacities in various sectors to meet domestic demands and cater to exports. The alcohol sector, closely linked to the sugarcane and ethanol value chain, is playing a significant role in the state’s agricultural roadmap.

Bhoosreddy further revealed that the existing distilleries in Uttar Pradesh, numbering 38, have increased their installed capacity by 592 million liters over the past four years. Consequently, the state now boasts a consolidated annual alcohol production capacity of over 3 billion liters.

Alcohol finds application in a wide range of industries, including liquor, cosmetics, and pharmaceuticals.

Simultaneously, the state government is encouraging the establishment of microbreweries to bolster the hospitality and tourism sectors. These microbreweries, which produce limited quantities of beer for captive consumption in hotels and restaurants, particularly in tourist hotspots, have witnessed the establishment of five new facilities in Uttar Pradesh, involving a total investment of Rs 363 crore.

Furthermore, the Excise Department is facilitating the establishment of new wineries to provide high-quality and legitimate leisure drinks to consumers in the state. Given Uttar Pradesh’s position as a major horticultural producer of nutritious crops such as mango and peach, the wineries’ value chain will benefit state farmers, increase rural incomes, generate local employment, and catalyze the food processing industry.

Bhoosreddy emphasized that the state has taken measures to simplify regulations and liberalize norms, aiming to enhance the ease of doing business and attract private sector investments. These sustained efforts have yielded positive results, leading to the establishment of numerous distilleries, microbreweries, sanitizer units, and more between July 2019 and March 2023.