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Alcohol Industry Presses Telangana to Clear ₹3,151 Crore Dues Before Festive Demand

Industry groups propose using licence-auction receipts to clear arrears, aiming to avert a festive-season supply crunch.

Overview

  • Three associations—ISWAI, CIABC and BAI—issued a joint appeal urging TGBCL to settle ₹3,151 crore owed to suppliers.
  • Over ₹2,300 crore of the outstanding amount has been pending for more than a year, leaving companies under severe cash strain.
  • The groups asked the state to earmark proceeds from a retail licence auction later this month, expected to raise over ₹3,000 crore, to clear the backlog.
  • They also sought a temporary cut in advance excise duty to 1% from 30% to ease working-capital pressure ahead of new retail licences taking effect in December 2025.
  • The industry warns of supply disruptions during the festive period, notes recent meetings with senior state ministers, and cites five years without price revisions and earlier supply suspensions as evidence of mounting stress.