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 on December 30, 2016.

Noting that 70-75 per cent 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, Rao said.

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 had even taken up the issue with former RBI Governor Raghuram Rajan, he said.

The state government would like to support MSMEs in the form of offering marketing and “co-branding”, he said.

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.

Source: The Economic Times