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Microbrewery biz losing fizz
Only two out of 20 microbreweries for which the State Excise and Prohibition Department has given approval have so far come up. To increase revenues substantially from liquor trade, the government had invited investors in November last year to set up microbreweries and sell beer exclusively by opening the beer
​Hyderabad: State government’s plans to mop up Rs 100 crore by way of excise revenue through setting up microbreweries has hit the buffers. The absence of suitable location and high input cost has led to delay in establishing much-touted microbreweries in the city.
Only two out of 20 microbreweries for which the State Excise and Prohibition Department has given approval have so far come up. To increase revenues substantially from liquor trade, the government had invited investors in November last year to set up microbreweries and sell beer exclusively by opening the beer parlours.’ Out of 60 applications received, the Excise Department had sanctioned permission to 20 licensees to open beer sale centres.
State Excise Department officials said though the investors had shown interest, they faced many hurdles in establishing the breweries. The mandated requirement of at least 1,000 square metre plinth area to open a microbrewery remained a major stumbling block for the investors.
The abnormal increase in the price of commercial space at main centres in the city forced the licensees to defer the establishment of the beer parlours. Liquor traders also brought to the notice of the government the condition that they should not sell more than 1,000 litres of draught beer a day was not financially viable as the input cost for production was also very high. Their contention was that there was scarcity in the availability of raw material like malt and yeast.
Telangana Wine Dealers Association leader D Venkateswara Rao said the licensees had sought some relaxations in the conditions to run the beer parlours. “The investors are waiting for positive response from the government as the license given to set up the breweries would be valid till September 30 this year,” a dealer said.
