By Aditya Kalra

NEW DELHI, Nov 19 (Reuters) - Alcohol industry groups

representing Heineken, Diageo ( DEO ) and Pernod Ricard

have urged the southern Indian state of Telangana to

settle $337 million in overdue payments, saying further delay

risks supply shortages and threatens business continuity, a

letter seen by Reuters shows.

Telangana is one of the largest alcohol-consuming regions in the

country but has had a tense relationship with beer and liquor

makers over payments for supplies to government depots. In

January, Heineken's United Breweries - which

makes the popular Kingfisher beer brand - briefly halted

supplies to the state in protest.

The pending dues, dating back to May 2024, add financial

strain on the industry ahead of the festive season when demand

typically rises by 75%, according to the letter sent to the

state's government on November 12.

Signed by the Brewers Association of India, Confederation of

Indian Alcoholic Beverage Companies and International Spirits

and Wines Association of India, the letter urged the state to

release the 29.85 billion rupees ($337 million).

"Non-clearance of old payments and delay in current payments

have created a situation which is not sustainable for the

industry," the private letter said.

"Many companies will not be able to continue operations as

they do not have the financial resources to do so," the letter

added, without specifying any company by name.

The Telangana government did not respond to repeated

requests for comment from Reuters.

Heineken, Diageo ( DEO ) and Pernod also did not respond to

queries.

Many regions like Telangana require liquor companies to

supply only to state-run depots, which then sell to retailers,

forcing the companies to rely on state governments for payment.

The alcohol sector in India, a key growth market for global beer

and liquor producers, is already contending with increasingly

stringent regulations, including planned tougher advertising

restrictions and antitrust investigations.