AP Beverages Corporation looks for loans as their money diverts to welfare schemes

Amaravati: Despite good returns, the AP State Beverages Corporation Limited is suffering from the debts as the successive governments have been diverting the money for various welfare schemes.

It was revealed by K Narayana Swamy, Deputy Chief Minister (Excise) in a press conference at Secretariat on Tuesday. He said that the Corporation has been planning to take the loans from banks to pay dues to the distilleries. He revealed that the then TDP government did not pay more than Rs 1700 Cr to the distilleries. After the YSRCP government came to power, it paid around Rs 200 Cr and still the Corporation has to pay at least Rs 1500 cr to the distilleries.

On the other hand, the official sources in the department have informed that the Corporation has been performing well. But the diversion of the money from the Corporation to the welfare scheme, in both the successive governments, led to the indebtedness of the institution. In fact, the distilleries have been supplying the liquor in advance and they take the money after sales in the Wine Shops.

The reason behind the problem is, the Finance Department has been withholding the entire sales money, not only the profit but also the entire revenue. Then it is being diverted to meet the needs of the government in implementing welfare schemes. It was said that the money was not released to the distilleries promptly by the government and hence the debts mounted. In fact, the Corporation is an independent body and its money is not supposed to be diverted by the government.