Telangana Govt to set up Industrial Health Clinic to sick MSMEs

Hyderabad, Dec 28 (KNN) The Telangana Government has plans to set up an 'Industrial Health Clinic' to support sick Micro Small Medium Enterprises (MSME) sector in the state  with a fund of rupees 100 crore.

In this context, the State Industries Minister KT Rama Rao has written a letter to Union Minister for MSME Kalraj Mishra seeking Centre's support for the initiative.

The letter was handed over to Mishra by Telangana Principal Secretary for Industry in Delhi.

Anil Reddy Vennam, President, the Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) told KNN that such attempts will certainly be beneficial for the MSME sector as government support is always considered crucial.

“When a layman wants to start an industry, he is blank how to start. He is more comfortable with the support of government,” said Anil R. Vennam.

The state government is planning to set up Industrial Health Clinic for MSMEs under the Telangana Industrial Development Corporation to diagnose, aid, facilitate and support the incipient sick and sick enterprises and to supplement the efforts of the Banks/Financial Institutions through a dedicated corpus fund with active stakeholder participation.

The 'clinic' is proposed to be set up with a corpus fund of rupee 100 crore in which the state's participation would be to the tune of rupees 10 crore. The contribution of industrial associations and other stakeholders would be rupees 50 crore.

The state government urged the Centre to provide rupees 50 crore as its contribution as a "one time grant", according to a release. (KNN/RAS)