How to Obtain a Microbrewery License in Hyderabad, Telangana (2026 Guide)

How to Obtain a Microbrewery License in Hyderabad, Telangana (2026 Guide)

Introduction

Hyderabad has rapidly emerged as one of India’s growing craft beer and hospitality brewery markets. The city’s expanding food culture, premium dining sector, and increasing consumer demand for fresh draught beer have created strong opportunities for:

• Brewpubs
• Hospitality breweries
• Restaurant breweries
• Standalone microbreweries

To regulate this sector, the Government of Telangana introduced the Telangana Microbrewery Rules, 2015 under the Andhra Pradesh Excise Act, 1968.

In 2025, Telangana also introduced important amendments to the microbrewery rules related to:

• Eligible license categories
• Telangana Core Urban Region (TCUR)
• Excise duty calculations
• Parking requirements
• Annual production capacity calculations

through G.O.Ms.No.96 dated 18 August 2025.

This guide explains:

• How to obtain a microbrewery license in Hyderabad
• Telangana brewery eligibility requirements
• Excise rules and fees
• Technical brewery requirements
• Important operational conditions
• New Telangana amendments for microbreweries

What Is a Microbrewery Under Telangana Rules?

According to the Telangana Microbrewery Rules, 2015, a microbrewery is defined as:

“a small brewery with an installed capacity of not more than one thousand liters per day in a place having built-up area with spacious dining hall and parking facility, where Draught Beer is manufactured and the same is served to their customers for consumption within the premises.”

The Telangana policy primarily focuses on:

• On-premise draught beer consumption
• Hospitality-integrated brewing
• Brewpub operations
• Premium dining brewery concepts

The rules also recognize:

• Standalone Microbreweries

which manufacture and serve draught beer exclusively.

Where Can Microbreweries Operate in Telangana?

Under the amended 2025 rules, microbrewery licenses may be granted within:

• Telangana Core Urban Region (TCUR)
• GHMC municipal areas
• Municipal corporations
• Tourism centers notified by the government

The amended rules define:

Telangana Core Urban Region (TCUR)

as areas covering:

• GHMC
• Urban local bodies
• Rural local bodies of:
  • Rangareddy
  • Medchal-Malkajgiri
  • Sangareddy districts up to Outer Ring Road (ORR)

This amendment significantly expands brewery opportunities around Hyderabad.

Who Can Apply for a Telangana Microbrewery License?

A license in Form-MB-2B may be granted to establishments licensed to serve food such as:

• Hotels
• Restaurants
• 2B Bars
• Elite Bars
• CI-Clubs
• TD1 and TD2 license holders

for on-premise liquor service.

This makes Telangana one of the more hospitality-oriented brewery licensing structures in India.

Telangana Microbrewery Application Process

Step 1: Apply for Prior Clearance

Applicants must submit:

• Form MB-1A
• ₹5,000 challan
• No Objection Certificate from local authority

to the Commissioner of Prohibition & Excise.

The Commissioner may then issue:

Prior Clearance in Form MB-2A

after reviewing the proposal.

Step 2: Install Brewery Equipment

After receiving prior clearance, the applicant must:

• Install brewery equipment
• Prepare the premises
• Complete utility setup

within:

• 180 days

as per the 2025 amendment.

Previously, the timeline was only 120 days.

Step 3: Apply for Final Brewery License

Once installation is complete, the applicant must:

• Submit Form-1MB
• Pay license fee
• Execute counterpart agreement (Form-6MB)

before obtaining final microbrewery approval.

Minimum Infrastructure Requirements

Minimum Space Requirements

The Telangana rules require:

• Minimum plinth area: 1000 sq. meters
• Minimum serving area: 100 sq. meters
• Minimum restaurant area: 100 sq. meters
• Minimum plant area: 300 sq. meters

Parking Requirements

Under the amended 2025 rules:

• Minimum parking requirement: 250 sq. meters

Additional Mandatory Requirements

The premises must also include:

• Separate restaurant
• Wash basin and sanitary facilities
• Cooking facilities
• Air conditioning or air cooling systems
• Proper dining infrastructure

Location Restrictions for Telangana Microbreweries

Licenses cannot generally be granted:

• Near educational institutions
• Near places of worship
• Near hospitals
• Near highways
• Inside predominantly residential areas

The rules specify:

• 100 meter distance restrictions
• 50 meter restrictions within municipal corporation limits

However, some restrictions are relaxed for:

• 3-star and above hotels certified by tourism authorities.

Telangana Microbrewery License Fees

Annual License Fee

The Telangana rules specify:

• Annual license fee: ₹3,00,000

Security Deposit

Applicants must also furnish:

• ₹1,00,000 security deposit

through:

• Bank Guarantee
• Fixed Deposit Receipt
• Cash deposit

Telangana Excise Duty Structure (2025 Amendment)

One of the most important amendments introduced in 2025 relates to:

Excise Duty Calculation

The amended rules specify that excise duty and VAT shall now be calculated based on:

• Annual production capacity of installed fermentation tanks

using the formula:

Annual production capacity = Total volume of fermentation tanks × 365 ÷ 14

This is an extremely important operational and financial consideration because excise calculations now directly depend on:

• Fermentation tank volume
• Installed capacity
• Brewery engineering decisions

Excise Duty Rate

The amended rules specify:

• ₹28 per litre of annual production capacity

The rules also state:

• Excise duty applies whether beer is produced or not
• Duty and VAT must be paid annually
• Payments must be made in installments

This makes proper brewery sizing extremely important in Telangana.

Telangana Brewery Capacity Limit

The rules specify:

• Maximum installed capacity: 1000 litres per day

This directly affects:

• Utility design
• Fermentation scheduling
• Tank sizing
• Brewery economics

Oversized fermentation systems may increase:

• Excise liability
• Utility costs
• Capital investment

without improving profitability.

Operational Conditions for Telangana Breweries

Draught Beer Restrictions

The Telangana rules clearly specify:

• Draught beer cannot be bottled
• Beer cannot be sold outside premises
• Beer must be served in glasses or pitchers only

Shelf Life Restriction

The rules specify:

• Shelf life of beer manufactured in microbrewery: 36 hours

This highlights Telangana’s focus on:

• Fresh draught beer
• On-site consumption
• Hospitality brewery operations

Alcohol Content Restriction

The beer alcohol content:

• Cannot exceed 8% ABV

Technical Requirements for Telangana Breweries

Telangana’s rules are among the most technically detailed brewery policies in India.

Mandatory Full-Time Brewer Requirement

The rules require breweries to:

• Hire a full-time head brewer
• Minimum 7 years industrial experience
• Brewing certification from reputed institutions

Foreign educational qualifications and international brewing experience are accepted.

Mandatory Chemist Requirement

Breweries must employ a chemist with qualifications in:

• Chemistry
• Organic chemistry
• Bio-chemistry
• Alcohol technology

Mandatory Electronic Flow Meter

The rules require:

• Electronic flow meter installation
• Between fermentation tanks and storage tanks

under excise supervision.

This creates stronger production monitoring and excise accountability.

Why Brewery Engineering Matters in Telangana

Because Telangana calculates excise based on fermentation capacity, brewery engineering becomes extremely important.

Improper brewery planning can create:

• Higher excise liability
• Excess utility costs
• Cooling inefficiencies
• Poor fermentation stability
• Higher electricity consumption

Breweries should carefully evaluate:

• Fermentation tank sizing
• Glycol load calculations
• Utility reserve capacity
• VFD-controlled glycol pumps
• FILO glycol piping design
• Drainage planning
• Draft beer system design

before finalizing layouts.

Common Mistakes in Hyderabad Brewery Projects

Oversized Fermentation Capacity

Larger tanks may increase excise burden unnecessarily.

Poor Utility Planning

Weak glycol systems create inconsistent fermentation.

Improper Workflow Design

Hospitality and brewing operations must integrate properly.

Ignoring Future Expansion

Many projects fail to leave utility reserve capacity.

Weak Draft Beer Design

Poor python routing and balancing affect beer quality.

Final Thoughts

Hyderabad continues to emerge as one of India’s strongest hospitality brewery markets.

The combination of:

• Expanding premium dining culture
• Large urban market
• Tourism growth
• Structured microbrewery policy

creates strong opportunities for professionally planned brewery projects.

However, success depends on much more than obtaining excise permissions.

Long-term brewery success requires:

• Proper brewery engineering
• Utility planning
• Fermentation stability
• Operational discipline
• Quality control
• Hospitality integration

The Telangana amendments also show the state’s increasing focus on:

• Structured excise monitoring
• Capacity-linked taxation
• Technical compliance
• Professional brewery operations

Need Help Planning a Microbrewery in Hyderabad?

Six Row Brewing provides consulting support for:

• Brewery planning
• Utility engineering
• Glycol system design
• Capacity planning
• Brewery workflow optimization
• Draft beer system design
• Fermentation engineering
• Hospitality brewery operations

Whether you're planning a brewpub, hotel brewery, or standalone microbrewery in Hyderabad, our team can help support technically informed brewery decisions.