Innovation is the hallmark of growth and the progressive industry policy of our Government has plenty of it. Just about an year ago, when I and the then Commissioner of Industries Mr. Manickaraj, now collector of Sangareddy district presented a case for such innovation, our Hon’ble Minister quickly endorsed it and added his own input to make the investment in the clinic wide based with the MSME participation. He is the first ever State Minister to visit the RBI with the then Principal Secretary and Commissioner of Industries in October 2016 to espouse the cause of aggrieved sector over the failure of the banks and inadequate response from the regulator.
This first state-promoted NBFC incorporated on the 7th of this month headed by a very experienced CEO Mr. M. Sanjaya, former General Manager, Rural Planning and Credit Dept of the RBI, stratgised its one hundred crore rupee corpus fund with 10% seeding from the State Government through TSIDC into three principal arms: Make in Telangana; Grow in Telangana; and Turn Around Management with the support of research base, case studies, and strong advisory and consulting support. A few of the banks have already shown interest in contributing to the Corpus fund that promises 7% yield after a couple of years of lock-in period.
Micro and small manufacturing enterprises in the state have little start-up funding and no more than 2% of turn-around management.
This diagnostic and curative clinic provides responsible and responsive consultancy and hand-holding support to ward off the compliance risks of banks in start-ups and revival. The incipient sick will be provided bridge finance to prevent sickness as decided by the Board.
The TIHCL targets on average five to ten enterprises per month per district during the coming year providing employment to around 5000 persons.
Just one service sector Small enterprise from our state is listed on the SME Exchange for the last six years of its existence. In order to encourage the manufacturing Small enterprises running on profits with good product range for the last 3 years to move to the equity markets our Clinic in coordination with NSE-EDGE and BSE and after proper due diligence will participate to an extent of 10% of the issue up to a maximum of Rs.50 lakhs. During the first year ten enterprises are targeted.
Employment, growth and zero-NPA MSEs in manufacturing are our targets. An independent Board with professionals will drive these initiatives. The country has no parallel elsewhere. At a time when NPAs and distressed assets are bugging the banking industry and Government of India our Government with this initiative will be the torch bearer for the MSE sector.