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New Delhi: Three leading alcobev industry associations -- CIABC, BAI and ISWAI -- have urged the Telangana government to clear dues of Rs 3,151 crore payable to their suppliers of alcoholic beverages.
The associations have urged the state government to utilise money to be received from forthcoming retail licence auction to clear the dues payable to the industry.
"Telangana’s alcobev industry is undergoing an existential crisis as the delayed payments from the Telangana State Beverages Corporation Ltd (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 said on Thursday.
Terming the situation an "existential crisis" for the alcobev industry in the state, they said many companies may struggle to maintain supplies in Telangana.
This backlog has left supplier companies grappling with severe operational losses and unprecedented financial pressure, it added.
CIABC (Confederation of Indian Alcoholic Beverage Companies) represents the home-grown Indian-Made Foreign Liquor players, while ISWAI (International Spirits and Wines Association of India) represents the imported premium portfolio of spirits and wine brands in India.
BAI (Brewers Association of India) represents leading beer markers -United Breweries, ABInBev and Carlsberg.
"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 said.
In addition, the associations have also asked the state government to reduce the current advance excise duty from 30 per cent to 1 per cent as an interim measure to help improve working capital availability to the industry.