The liquor industry in Telangana has raised serious concerns over unpaid government dues exceeding ₹3,900 crore, warning that prolonged delays could disrupt supplies and damage the state’s investment image just ahead of the World Economic Forum meeting in Davos.
Three major industry bodies — the Brewers Association of India, the International Spirits and Wines Association of India, and the Confederation of Indian Alcoholic Beverage Companies — have jointly written to the Telangana government, highlighting mounting arrears owed by the Telangana State Beverages Corporation Limited (TGBCL). Of the total dues, nearly ₹900 crore has been pending for more than a year.
Strong revenues, delayed payments
The warnings come despite Telangana’s excise revenues rising more than fourfold over the past decade — from about ₹9,000 crore in 2014 to nearly ₹38,000 crore in FY24. The alcohol sector contributes over one-third of the state’s total tax revenues, the highest share for any Indian state, generating ₹2,300–2,600 crore every month.
Industry players say the contrast between booming revenues and delayed payments has put severe pressure on suppliers’ cash flows and working capital.
Supply chain and job risks
Under Telangana’s depot-based system, all liquor and beer sales pass through state-run depots, and suppliers receive payments only from the government. Any delay directly impacts the entire supply chain, affecting breweries, distilleries, packaging firms, logistics providers and retailers.
The sector supports an estimated 70,000 direct and indirect jobs across the state. Industry bodies warned that continued delays could threaten employment and disrupt supply continuity. United Breweries, maker of Kingfisher beer, has already stopped supplies due to unpaid dues, while other companies have hinted at similar steps.
Investor confidence under strain
The industry also flagged broader concerns about the business climate. TG-iPASS investment approvals fell over 50% in FY25, dropping to ₹13,730 crore from ₹28,100 crore a year earlier, signalling weakening investor confidence.
Call for urgent action
The associations have urged the state government to clear pending dues immediately and restore the agreed 45-day payment cycle. They warned that failure to act could hurt excise collections, employment, and Telangana’s credibility as an investment destination — especially as the state prepares to pitch itself to global investors at Davos.
