Allied Domecq's chief executive officer Srikant Iluri said: "We were expecting the government to take some protectionist steps, hence this does not come as a surprise. The CVD would mean that more or less nothing has changed. Imported brands will be available but at a high price."

He added: "The only change that lifting of Quantitative Restrictions (QRs) will bring is availability of a larger number of brands. But the international range of spirits will have a premium price"Mr Iluri said: "This decision by the finance minister will not have any impact on our plans, we will go as per schedule. We were not looking at importing low-end products. Allied Domecq had lined up premium brands for importing into India and these brands have a customer base who will pay the price even if it is on the higher end."

" We are optimistic that the CVD factor will not effect the sales of premium brands." he added.

Ballantine's scotch, Beefeater gin, Kahlua liquer and Sauza tequila are the brands Allied Domecq has lined for the Indian market post Qrs.He said, the company was not expecting huge volumes for its imported products. According to Mr Iluri, it will be sometime before the market picks up for imported liquor.

He said: "I understand the proposed CVD will mean no entry of cheap liquor. It will also mean protecting local brands. We were expecting something on this line but the price of the imported products will depend on the quantum of the CVD." Mr Illuri added: "The level of CVD has still not been decided. It could be minimal or as high as 200 per cent. I also understand the import duty remains the same but these factors will not block the entry of international range of products into the country."

Normally CVDs are levied on the highest level of excise duty paid by the local industry and if this is the case then CVDs at 200 per cent as charged by Maharashtra would come into force. However, the quantum of CVD is still not known.

Any company importing liquor into the country will have the proposed CVD and customs duty at the current level of 223 per cent for spirits, 119 per cent for wines and beer.