Hyderabad liquor label contract stays with same consortium
HYDERABAD: A consortium of three companies has continued to hold the contract for supplying holographic labels for liquor bottles in Telangana for 13 years, with the arrangement being extended eight times through the nomination route after the initial tender period, according to allegations surrounding the contract.
The contract dates back to undivided Andhra Pradesh. Though Telangana was formed as a separate state and governments have changed since then, the consortium supplying the labels has remained unchanged.
Contract continues through nominations after initial five-year tender
The consortium initially secured the contract through a tender for five years. Since then, the contract has been extended annually through nominations, with eight such extensions so far.
Attempts were made in the past to award the supply contract to a new company. Similar efforts have also been initiated under the present Congress government, but allegations have surfaced that these exercises exist only on paper and that “adjustments” behind the scenes have ensured continuation of the existing arrangement.
The fact that the relevant file has moved several times without resulting in a new contract has added to these allegations. An expression of interest notification was issued in 2024, but the process has yet to be finalised and the old supplier continues to hold the contract.
A media owner also tried to secure the label contract with the support of a key political leader, but the efforts failed, according to the report.
The existing company is now seeking the contract to supply labels for beer bottles as well. Allegations have surfaced that the same “adjustment” is behind this proposal and that moves to replace the existing supplier have remained confined to paperwork.
Label price rises from 22 paise to 33 paise
The company currently supplies 15 crore labels every month to the Beverages Corporation.
When it secured the tender, it had agreed to supply each label for 22 paise. The rate subsequently increased and has now reached 33 paise per label.
At that rate, the government pays up to ₹ 5 crore a month for 15 crore labels, taking the annual value of the supplies to around ₹ 60 crore.
Questions are being raised over the actual production cost of the labels and allegations of payments to key people in the government and officials. Questions have also surfaced over how many more years the contract will continue to be extended through the nomination route.
