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Leading industry associations urged the government to clear dues to reassure global investors ahead of the Telangana’s representation at Davos 2026 later this month
The alcohol beverage industry contributes more than a third of Telangana’s tax revenues – the highest among Indian states – generating Rs 2,300 crore to Rs 2,600 crore every month. (Image for representation)
The alcoholic beverage industry has urged the Telangana government to pay long-pending dues of Rs 3,900 crore to the sector.
Leading industry associations said payment delays at such a scale dilute the credibility of the state to attract investment. Hence, they urged the government to clear dues to reassure global investors ahead of the state’s representation at Davos 2026 later this month.
In a joint statement, the Brewers Association of India (BAI), International Spirits and Wines Association of India (ISWAI), and Confederation of Indian Alcoholic Beverage Companies (CIABC) have cautioned that continued delays risk disrupting supplies, impacting excise revenues and causing wider investor confidence concerns.
The associations said dues payable by the Telangana State Beverages Corporation Limited (TGBCL) to suppliers have crossed Rs 3,900 crore, with a significant portion of Rs 900 crore pending for more than a year. This comes despite excise revenues increasing more than four times over the past decade – from around Rs 9,000 crore in 2014 to nearly Rs 38,000 crore in FY 2023-2024 – and the state collecting over Rs 3,000 crore in October 2025 alone through liquor retail licence application fees. December 2025 revenue turnover has also been at an all-time high.
They said the sector contributes more than a third of Telangana’s tax revenues – the highest among Indian states – generating Rs 2,300 crore to Rs 2,600 crore every month. It supports a large ecosystem of breweries, distilleries, packaging, logistics and retail, providing an estimated 70,000 direct and indirect jobs across the state, they added.
The associations pointed to a decrease in industrial investments towards the state: TG-iPASS approvals declined by more than 50 percent from Rs 13,730 crore in FY 2024-2025 from Rs 28,100 crore in the previous year). They said as Telangana prepares to showcase itself as a preferred investment destination at Davos, it is important that the state honours its existing contractual commitments to position itself as a credible partner in business.
“The alcobev sector delivers predictable, recurrent, and large scale revenues to the state exchequer. Clearing dues and restoring the 45-day contractual payment cycle is fiscally prudent and essential to protect revenues, jobs and supply continuity,” read the joint statement.
The associations have said timely settlement of pending payments would reinforce confidence among existing and prospective investors and strengthen Telangana’s reputation as a reliable place to do business.
January 15, 2026, 4:09 PM IST
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