Telangana allows microbreweries beyond Hyderabad

The Telangana cabinet has recently approved amendments to the Telangana Micro Brewery Rules, 2015, allowing the establishment of microbreweries in all municipal corporations across the state. Until now, microbreweries were permitted only within the Greater Hyderabad Municipal Corporation (GHMC) limits, where 18 are operational.

The move is expected to cater to the rising demand for craft beer, especially during high-consumption seasons like summer. The microbrewery policy was originally introduced in 2015 by the then government, aligning Hyderabad with metropolitan peers such as Bengaluru, Mumbai, Pune, and Gurugram.

Back in 2015, the excise department invited applications, receiving around 60 by 2016. However, only 18 licences were issued due to the high capital investment of nearly ₹2 crore and regulatory costs, including a ₹3 lakh licence fee and ₹1 lakh security deposit.

Under current rules, microbreweries can produce up to 1,000 litres of beer daily, but the product must be consumed on-site within 36 hours of production. Bottling or off-site sales are prohibited. Additionally, establishments are required to have a minimum 1,000 sq. metre plinth area.

To encourage broader participation, the government plans to reduce the minimum plant area requirement from 300 to 100 sq. metres and issue fresh guidelines aimed at easing financial barriers. A new notification inviting applications is expected soon.