(MENAFN- KNN India) TIHCL takes measures to rescue declining MSMEs
New Delhi, Apr 3 (KNN) The newly launched Telangana Industrial Health Clinic Limited (TIHCL) discovered that around 60% of the Medium, Small and Micro Enterprises (MSMEs) in Telangana are sick due to financial problems, management issues, levy of commercial taxes, demonetization, high power costs while 30% are suffering due to marketing, technology and other issues.
In the last six months TIHCL diagnosed the causes of the declining MSME units and now has started interacting with MSME to help the ailing MSME units.
Talking to KNN, TIHCL advisor B. Yerram Raju said that MSMEs that are suffering from non-financial issues will receive experts guidance, counseling and mentoring session and this will be done under expert consulting team.
He said that more than 40 units have benefitted through mentoring, counseling and consulting.
This had helped TIHCL bag the ‘Skoch Platinum Award - 2017' for ‘innovation in governance', he added.
Further, he added that to address the financial issues faced by MSME's, we make request to government for policy changes that will work in favor of MSME's.
While inaugurating the unique industrial clinic which is expected to come to the rescue of the ‘sick' MSMEs through restructuring, margin financing, equity support and in decision making, CEO Sanjaya Maruvada said that due to high power cost steel and ferro-alloys units have lost the competitive edge.
In this regard, TIHCL will come to the help ailing small units who are 'not willful defaulters, but at the same time is not going to be a financing enterprise.
Services will be totally online in four months and a pact was signed on the occasion with ‘Cyscon' for providing enterprise resource planning (ERP) solutions.
IT and Industries Secretary Jayesh Ranjan, who launched an e-book, said the government has been providing round-the-clock free power supply to agriculture, hence, it has to be cross-subsidized by the industry.
Further he added that adoption of high-technology units make them competitive.
TIHCL can help banks do their job more diligently and help in 'early diagnosis for taking prompt steps for units to revive and flourish, Raju told the media.
He added, it will act as a facilitator between MSMEs and banks with a support of qualified consultants.
Soon, a knowledge portal with blogs by accredited consultants and staff, along with e-books would be available with case studies, he informed.
On observing that banks have uniformly failed to provide timely support to the MSME sector, forcing companies into the red, he said that the IT Minister had even written to the Reserve Bank of India (RBI) to categorize MSMEs into priority lending.
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