Startup Originals Team
The alcoholic beverages sector has called on the Telangana government to settle around ₹3,900 crore in unpaid payments to suppliers, warning that the long-pending dues are hurting investment sentiment and supply continuity in the state. Industry groups say about ₹900 crore of the total has been outstanding for over a year, despite the sector being a major contributor to the state’s revenue.
Industry Warns of Broader Impact of Payment Delays
Three major associations, the Brewers Association of India (BAI), International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC), issued a joint statement urging the state to clear the backlog as soon as possible. They said the overdue payments owed by the Telangana State Beverages Corporation Limited (TGBCL) have crossed ₹3,900 crore, and about ₹900 crore of that has been pending for more than a year.
The associations warned that continued delays in payments threaten the stability of supply chains, investor confidence, and the financial health of companies supplying alcoholic beverages within the state. Restoring the contractual 45-day payment cycle is seen as essential for protecting jobs, revenue streams, and production continuity.
Industry’s Economic Significance in Telangana
The alcohol sector is a vital revenue source for Telangana, contributing a substantial share of the state’s tax income. Industry representatives highlighted that the sector generates ₹2,300 crore to ₹2,600 crore per month, making it one of the largest contributors to the state’s coffers.
Despite record excise revenue in recent months, including over ₹3,000 crore collected through liquor retail licence application fees in October 2025 and high turnover in December, payments to suppliers have lagged. The associations said this mismatch is dampening investor sentiment and has coincided with a notable drop in industrial investment approvals under the state’s TG-iPASS scheme.
Supply Chain Strain and Cash-Flow Issues
Industry groups emphasised that prolonged payment delays are causing working-capital stress for manufacturers, brewers, and distributors across the supply chain. With a significant portion of dues overdue, companies face challenges meeting operational expenses and may struggle to sustain supply levels to the state if payments are not cleared promptly.
The associations have suggested potential measures, including using revenues from liquor licence auctions to offset some outstanding dues and temporarily reducing advance excise duty to ease financial pressure.
Outlook and Ongoing Discussions
While the Telangana government has not publicly announced a timeline for settling the overdue payments, industry representatives say resolving the issue is critical to maintaining uninterrupted liquor supply, preserving jobs, and securing investor confidence in the state’s business environment.
The coming weeks are expected to be crucial, as both industry and government seek a path forward that balances fiscal management with sustaining the health of a sector that plays a key role in Telangana’s economy.
