Industry bodies warn payment delays risk investor confidence, supply disruption and revenue stability as the state prepares for WEF 2026
Leading alcoholic beverage (alcobev) industry associations have flagged mounting concerns over delayed payments by the Telangana Government, warning that outstanding dues of over Rs 3,900 crore threaten investor confidence, supply continuity and the State’s credibility as it prepares to court global investors at the World Economic Forum (WEF) annual meeting in Davos later this month.
In a joint appeal, the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI) and the Confederation of Indian Alcoholic Beverage Companies (CIABC) urged the State to urgently clear long-pending payments owed by the Telangana State Beverages Corporation Limited (TGBCL) to alcobev suppliers. Of the total dues, nearly Rs 900 crore has been outstanding for more than a year, the associations said.
The industry bodies noted that the delays persist despite a sharp rise in excise revenues over the past decade. Telangana’s excise collections have increased more than fourfold, from around Rs 9,000 crore in 2014 to nearly Rs 38,000 crore in FY 2023–24. In addition, the State collected over Rs 3,000 crore in October 2025 alone through liquor retail licence application fees, while December 2025 reportedly recorded an all-time high revenue turnover.
The alcobev sector contributes more than a third of Telangana’s overall tax revenues — the highest proportion among Indian states — generating between Rs 2,300 crore and Rs 2,600 crore every month. The industry also supports a broad ecosystem spanning breweries, distilleries, packaging, logistics and retail, accounting for an estimated 70,000 direct and indirect jobs across the State.
The associations further highlighted a slowdown in industrial investments, pointing out that TG-iPASS approvals fell by over 50 per cent to Rs 13,730 crore in FY 2024–25 from Rs 28,100 crore in the previous year. They cautioned that persistent payment delays could exacerbate concerns among domestic and global investors.
As Telangana prepares to present itself as a preferred investment destination at Davos 2026, the industry bodies stressed that honouring existing contractual commitments is essential to reinforce trust. “Payment delays at this scale dilute the credibility and image of the State to attract investment,” the associations said in a joint statement.
A joint communique by BAI, ISWAI and CIABC stated: “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.”
The associations added that timely settlement of pending payments would reassure existing stakeholders, strengthen investor confidence and reinforce Telangana’s standing as a reliable and business-friendly destination.
