hometravel Newsfood and drinks NewsMaharashtra revives wine scheme for industry boost; Sula Vineyards set for big gains
Maharashtra revives wine scheme for industry boost; Sula Vineyards set for big gains
In an interview with CNBC-TV18, Jagdish Holkar, President of the All India Wine Producers Association, explained that the Wine Industrial Promotion Scheme, which had been ongoing since 2009, was recently dissolved by the cabinet.
The Maharashtra government is set to revive the Wine Industrial Promotion Scheme (WIPS) for the next five years after the state cabinet approves the proposal. Introduced in 2009 to promote Maharashtra's wine industry, the WIPS was paused during the COVID-19 pandemic but is now set to continue.
In an interview with CNBC-TV18, Jagdish Holkar, President of the All India Wine Producers Association, explained that the scheme, which had been ongoing since 2009, was recently dissolved by the cabinet.
Holkar highlighted that wineries annually contribute approximately ₹70-80 crore as value-added tax (VAT), with 80% of this amount eligible for a refund.
The VAT for wineries is set at 20%, with 16% refunded as a rebate under the WIPS.
The State Cabinet, on January 4, not only greenlit the revival of the scheme but also approved the rebate refund for wineries that have been paying 20% VAT for the past four years: 2020–21, 2021–22, 2022–23, and 2023–24.
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Addressing the impact on Sula Vineyards, a listed entity, Holkar mentioned that Sula is likely to receive more than 50% of the total VAT refund in Maharashtra.
Given Sula's significant sales within the state, the company is expected to benefit substantially from the VAT scheme.
Holkar estimated that Sula might receive around ₹40 crore from the total ₹80 crore refund.
Looking ahead, Holkar expressed optimism about the industry's growth, foreseeing a multi-fold increase within the next five years. He shared the association's mission of achieving a ₹5,000 crore industry by the year 2026.
Also Watch: To support Maharashtra's wine industry, the state government has given the green light to extend the wine industrial promotion scheme for another 8 years. Rajeev Samant, the Managing Director and CEO of Sula Vineyards, elaborated on this during an interview with CNBC-TV18.
For the entire interview, watch the accompanying video
First Published: Jan 5, 2024 2:51 PM IST
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