Telangana's AlchoBev Dues Clouding Investment Prospects

Three major AlchoBev associations are urging the Telangana government to clear Rs 3,900-crore dues to suppliers. Despite significant revenue collections, payment delays are affecting industrial investments and creating negative sentiment in the sector. Excise revenues have increased significantly, contributing to a third of the state's tax revenue.

Three leading alcoholic beverage associations have issued a joint appeal urging the Telangana government to settle outstanding dues amounting to Rs 3,900 crore owed to suppliers.

In their statement, industrial bodies CIABC, BAI, and ISWAI highlighted the dent in the investment climate caused by these delayed payments despite the state collecting over Rs 3,000 crore in October 2025 from liquor retail license applications.

An increase in excise revenue to nearly Rs 38,000 crore in the fiscal year demonstrates the sector's financial contribution, but payment delays are negatively impacting industrial sentiment, resulting in declining state investments and significant drops in TG-iPASS approvals.

(With inputs from agencies.)