Telangana to set up Industrial Health Clinic with Rs 100 cr corpus to rejuvenate MSME
Updated: Dec 30, 2016 09:48:24am
Telangana to set up Industrial Health Clinic with Rs 100 cr corpus to rejuvenate MSME
Hyderabad, Dec 30 (KNN) The Telanagana State Industries Minister K T Rama Rao said on Friday that state government will soon set up an Industrial Health Clinic to revive sick units in the Micro, Small and Medium Enterprises (MSME) sector with a corpus of rupees 100 crore.
KT Rao said, government proposes to set up the Industrial Health Clinic as a Non-Banking Financial Institution (NBFC) with a CEO in place.
He also said that there is a need to protect units in the sector as 70-75 per cent jobs are provided by the MSME sector.
According to the statements, state government sought the financial help of the Centre in setting up the institution and the idea was also appreciated by the Union Minister for MSME Kalraj Mishra.
He added such practice is not good as banks have not been too supportive of MSMEs in recovering loans. Banks often declare MSMEs as sick without conducting the required techno-economic viability study, he said.
He revealed that the state government had even taken up the issue with former RBI Governor Raghuram Rajan. The state government would like to support MSMEs in the form of offering marketing and "co-branding", he said, as per the reports.
To another matter raised by the members, the minister said the government would take back land allotted to firms if they have not started operations as per rules. (PTI inputs)