Principal Secretary Arvind Kumar met Union Minister Kalraj Mishra at the National Institute of Micro Small and Medium Enterprises office today and briefed him about the Telangana government's initiative to set up an Industrial Health Clinic to support the sick enterprises in the State.
He also handed over a letter written by the Minister for Industries & Commerce K T Rama Rao, towards the establishment of the Telangana Industrial Health Clinic. The Union Minister responded positively to the State government's request and assured all possible help from the Central government.
KTR, in his letter, mentioned that having launched a strong industrial policy, the Telangana State would also like to build an industrial ecosystem akin to developed nations.
He said that the State had to contend with certain legacy issues after the formation of the State, one of them being large scale sickness in the MSME sector coupled with lack of interest in revival and rehabilitation of MSEs in particular from the commercial banks.
The Minister stated that the Telangana government believed that prevention was better than cure, and hence would like to set up the Health Clinic for MSEs under the State Industrial Development Corporation to diagnose, aid, facilitate and support the incipient and sick enterprises, and supplement the efforts of the banks/financial institutions through a dedicated corpus fund with active stakeholder participation.
Explaining the salient features of the proposed Industrial Health Clinic, the Minister said that it was proposed to set up a corpus fund with Rs. 100 crores, with the State's participation being Rs. 40 crores from industrial associations and stake holders, and the rest Rs. 50 crores from the Government of India.