Karnataka’s agency at odds over liquor labels

Karnataka's industries and finance departments are at odds over the production of excise security labels for the state's distilleries.

Karnataka State Marketing Communications and Advertising Ltd (KSMCA), which prints security labels that are adhered to liquor bottles, has had its authorization revoked by the finance department. Instead, the excise department was given the task by the finance department.

The industries department, which prints and sells excise security labels to distilleries since 1990, has not received well with the change. In order to accomplish this, KSMCA even got a 4(g) exemption under the Karnataka Transparency in Public Procurements Act (KTPPA).

According to a KSMCA official, since they were assigned the task, the KSMCA has never failed in performing its duty. The last contract expired on June 30, 2023, and the excise department, under instructions from the finance department, has not only declined to renew it but also revoked permission.