Investment sought for setting up distilleries

Hyderabad: Telangana state witnessed major spurt in IMFL (Indian Made Foreign Liquor) demand. Growing influx from other States to Hyderabad and strong vigilance against the flow of spurious liquor curbing consumption of ID liquor increased IMFL consumption. To meet the demand government invited investments for setting up distilleries.

The officials of State Excise and Prohibition department said that the demand for IMFL has been increased by 30 percent in the last four months. The IMFL sale has gone up to 22 lakh cases from October. Earlier, it was only 16 lakh cases. The reason for increasing IMFL demand was migration of people from other States for employment in the MNCs and IT and other sectors in Hyderabad in the last six months.

Visiting investors under the new industrial policy from across globe to explore business opportunities gave a big boost to IMFL sale and the consumption increased phenomenally. The other main reason for growing IMFL demand is the Enforcement wing of the Excise department succeeded in containing free flow of ID ( Illicitly Distilled) liquor and the consumption of gudumba in the villages.

With no availability of ID liquor, people opted IMFL as an alternative for liquor consumption. At present, the production capacity of 18 distilleries is 2,000 Lakh Proof Litres (LPLs). To meet the demand government permitted to private companies to set two distilleries in Medak and Mahbubnagar districts and also gave consent to expand the capacities of some existing distilleries .

Government prepared plans to add 1,200 LPLs to the existing capacity, officials said. The Excise officials said with the rising demand for IMFL, revenues from liquor sales also gone up. As against the target of Rs 12,000 crore in 2015-16, the department already realised 80 percent of the revenue. The department is confident that revenues will exceed the target in the next three months.