Liquor bodies urge Telangana to clear dues of over ₹3,900 cr

With the World Economic Forum’s 56th annual meeting approaching, leading alcobev industry bodies have called on the Telangana government to urgently clear long-pending payments amounting to over ₹3,900 crore, warning that continued delays could disrupt liquor supplies, dent excise revenues and undermine investor confidence.

In a joint statement, the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI) and Confederation of Indian Alcoholic Beverage Companies (CIABC) said outstanding dues payable by the Telangana State Beverages Corporation Ltd. to suppliers have crossed ₹3,900 crore. Of this, nearly ₹900 crore has been pending for more than a year.

The associations pointed out that the delays persist despite a sharp rise in the State’s excise revenues, which have grown more than fourfold over the past decade from around ₹9,000 crore in 2014 to nearly ₹38,000 crore in FY 2023–24. In addition, Telangana reportedly collected over ₹3,000 crore in October 2025 alone through liquor retail licence application fees, while December 2025 turnover touched an all-time high.

The alcobev sector contributes over one-third of Telangana’s total tax revenues, the highest share among Indian states, generating ₹2,300–2,600 crore every month. It also supports a broad ecosystem of breweries, distilleries, packaging, logistics and retail, providing an estimated 70,000 direct and indirect jobs across the State.

The industry bodies also flagged a slowdown in industrial investments, noting that TG-iPASS approvals declined by over 50 percent to ₹13,730 crore in FY 2024–25 from ₹28,100 crore in the previous year.

A joint communique by BAI, ISWAI and CIABC stated, “The alcobev sector delivers predictable, recurrent and large-scale revenues to the State exchequer. Clearing dues and restoring the 45-day contractual payment cycle is fiscally prudent and essential to protect revenues, jobs and supply continuity.”

As Telangana prepares to project itself as a preferred investment destination at the upcoming Davos meeting, the associations said timely settlement of dues is critical to uphold the State’s credibility as a reliable business partner.