Cyclodextrin glycosyl transferase (CGTase; EC 2.4.1.19) is the enzyme that converts starch into cyclodextrins (CD’s) which are closed-ring structures having six or more glucose units joined by means of α-1, 4 glucosidic bonds. CGTases are classified in the α-amylase family and are known to catalyze four different transferase reactions: cyclisation, coupling, disproportionation, and hydrolysis .Three major types of Cyclodextrins are produced by CGTases depending on number of glucose units, α – CD, β- CD and γ- CD. CGTase is used for industrial production of cyclodextrin and for biotransformation. Cyclodextrins have a variety of applications in food, pharmaceutical and cosmetic industry. Cyclodextrins are used as drug carriers and tabletting vehicles. It is evident from the above mentioned applications that CGTase enzyme is industrially a very important enzyme because of its application in production of CD’s. However, its application is still significantly limited because of its low yield and extravagant price. CGTase from alkaliphilic Bacillus sp. overcame all these problems and lead to mass production of α – CD, β- CD and γ- CD .Since then it is known that alkaliphiles are candidate organisms for CGTase production. In India, Lonar Lake (Buldhana Dist., Maharashtra State) is a well known alkaline lake formed by meteorite impact in basalt. The cultivable bacterial diversity of Lonar lake and screening of organisms for industrially important compounds with biotechnological applications (PHA, EPS, proteases) has been studied previously but there is no report on the occurrence of CGTase in organisms isolated from Lonar Lake. Thus studies on alkaliphilic bacteria from Lonar Lake for production of CGTase may pave way for discovery of this extremozyme with huge biotechnological potential and application for production of CD’s.