Three leading industry associations have urged the Telangana State Beverages Corporation Limited (TGBCL) to clear pending dues of Rs 3,151 crore owed to alcohol suppliers, warning that the delay has pushed the state’s liquor industry into crisis.
"Telangana’s alcohol beverages industry is undergoing an existential crisis as the delayed payments from the TGBCL has crossed over Rs 3,151 crore, out of which over Rs 2,300 crore is more than a year old," a joint statement from the associations read on Thursday, October 9.
The three associations in question are the Confederation of Indian Alcoholic Beverage Companies (CIABC) represents the home-grown Indian-Made Foreign Liquor players, the International Spirits and Wines Association of India (ISWAI) represents the imported premium portfolio of spirits and Wines Association of India, and Brewers Association of India (BAI) represents beer markers – United Breweries, ABInBev and Carlsberg.
The three alcohol beverage associations have urged the Telangana government to use the money coming from an upcoming retail licence auction to clear dues to alcohol suppliers. "The tender process for the renewal of retail licence later this month is expected to generate a revenue of over Rs 3,000 crore, which should be earmarked for clearance of the money due to the industry for supplies made, a majority of which is pending for over a year now," the statement read.
“This backlog has left supplier companies grappling with severe operational losses and unprecedented financial pressure. Many companies may struggle to maintain supplies in Telangana at this rate,” the statement further read.
The associations have also asked the state to consider reducing the advance excise duty from 30% to 1% as an interim measure.