Hyderabad: Alcohol beverage industry associations have urged the Telangana government to ensure the payment of Rs 3,151 crore in dues owed to them by the Telangana State Beverages Corporation.
The associations representing India’s alcoholic beverage manufacturers have appealed to the Telangana government to expedite the settlement of Rs 3151 crore in pending dues from the Telangana State Beverages Corporation.
Joint statement issued
In a joint statement issued on Thursday, October 9, the Brewers Association of India, the Confederation of Indian Alcoholic Beverage Companies, and the International Spirits and Wines Association of India said their member companies have been awaiting payments for liquor supplies made to the state-owned corporation.
The industry bodies suggested that the government should utilise the revenues generated from the ongoing retail liquor license allocation process to clear these outstanding payments.
They estimated that the licensing process is expected to generate around Rs 3000 crore in revenue, which could be used to settle the dues.
According to their statement, about Rs 2300 crore of the total amount has been pending for over a year.
The associations emphasised that the growing backlog is severely impacting their working capital and overall financial liquidity.
Reduce excise duty: Brewers body
To ease operational pressures, they also appealed to the government to reduce the excise duty on alcoholic beverages from the current 30 percent to 1 percent, at least temporarily, to improve working capital availability and ensure smoother industry functioning.
