Telangana Industrial Health Clinic to collaborate with BSE, NSE to help MSMEs tap equity market

Hyderabad, July 31 (KNN) In order to help the sick MSMEs in Telangana tap equity market, the state government is planning to have a pact between Telangana Industrial Health Clinic Ltd (TIHC) and the National Stock Exchange (NSE) & Bombay Stock Exchange (BSE).

TIHC was formed by the Government to revive and revitalise the micro, small and medium enterprises.

TIHC is yet to get RBI’s nod to transform into a non-banking financial company.

According to a media report quoting B. Yerram Raju, Economist and advisor to the TS Government, the state government has started talks with them and in principle the bourses have agreed to help the units on the stock market so that they can raise up to 35-40 lakh.

So far, only a single unit from here has been listed, he said.

The Clinic functions under four major windows. First window offers preliminary diagnosis; this service is free for all the associated MSMEs as they too are investing in the formation of the clinic. In this TIHC diagnoses the situation of the unit, also wilful defaulters are filtered and kept aside. Through this window the TIHC extends financial support to the manufacturing start-ups who otherwise find it very difficult to avail loans.

Under the second window, TIHC facilitates the SMEs in going to the equity market. For this purpose the TIHC is collaborating with the NSE and BSE.

The third window is to provide rehabilitation and revival support to the MSMEs who are not functioning well. Under this window in collaboration with many of the government’s program on rehabilitation TIHC will facilitate waivers, subsidies and amnesty periods to help the units come back on their feet. This will be followed by proper monitoring of these units along the line.

The fourth window provides room for TIHC to collaborate with other national and international organizations for knowledge sharing, collaborative researches to help build sustainability in the long run.

Of the total 33,000 MSME units in Telangana, 7,842 units are currently ailing due to various reasons. (KNN Bureau)