The government is denying media reports that say that permission was given to start or expand distilleries.
A press release from the Chief Minister's office said that the granting of permission to produce additional liqour after the licensed capacity is exhausted, is not a new practice.
Manufacturers are allowed to produce only the amount their license states. In order to exceed the amount dictated by the license, special permission is required, the release said.
The production limit, in 2002-03, was at 68 lakhs PL - and then, in 2004-05, it went up to 82.8 lakhs PL.
The release also stated that the purpose of giving permission, to exceed licensed production levels, is to avoid the creation of a black market, which can occur when there is a discrepancy between the supply and demand (INN).
filed in:Alcohol/Liquor, N Kiran Kumar Reddy, Journalists