Telangana Mulls To Set Up Industrial Health Clinics To Revive MSMEs  

Hyderabad: The Telangana government would soon set up an 'Industrial Health Clinic' to revive sick units in the MSME sector with a corpus of Rs 100 crore, State Industries Minister K T Rama Rao said in the Legislative Assembly here.

Noting that 70-75 percent jobs are provided by the MSME sector, he said there is a need to protect units in the sector.

The government proposes to set up the 'Industrial Health Clinic' as a Non Banking Financial Institution (NBFC) with a CEO in place, he said in reply to a query in the Question Hour.

The state government sought the financial help of the Centre in setting up the institution and Union Minister for MSME Kalraj Mishra has appreciated the idea, KTR said.

The government proposes to set up the ‘Industrial Health Clinic’ as a Non Banking Financial Institution (NBFC) with a CEO in place, he said in reply to a query in the Question Hour

Observing that banks have not been too supportive of MSMEs in recovering loans, he said such a practice is not good.

Banks often declare MSMEs as sick without conducting the required 'techno-economic viability study, he said. The state government would like to support MSMEs in the form of offering marketing and "co-branding", he added.

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.