Bengal govt eyes liquor supply biz

IMFL distributors ask for a full financial year prior to takeover so that loans can be repaid

The cash-strapped West Bengal government is making every effort possible to pull up its revenue in order to finance expenses, the latest being the move to take over the liquor distribution business from private players. This move could result in Rs 1,200 crore bank loans turning into non-performing assets (NPAs).

The 109-odd Indian made foreign liquor (IMFL) distributors in the state say that Rs 700 crore is already in circulation in the market as credit to retailers which was sourced from bank credit. Another Rs 500 crore has been invested to set up distribution infrastructure, again financed througth bank loans.