Highlighting the challenges faced by the Micro Small and Medium Enterprises (MSME) sector in Telangana, Cabinet Minister for Information Technology, Electronics & Communication Department K T Rama Rao met Reserve Bank of India’s (RBI) governor Urjit Patel in Mumbai.
A memorandum was submitted by KTR to the RBI governor pertaining to the hardships of the MSME sector in the State.
In a meeting that lasted nearly for an hour, the minister discussed various measures to toughen the MSMEs in Telangana. MSMEs constitute a pivotal part of the economy and they also assist in generating employment on a large scale.
The minister described that MSMEs in the State are not getting required attention from the banks and financial entities despite their crucial contribution to the economy.
Explaining the negligence towards the sector KTR said that the State has 69,120 MSMEs out of which 8,618 have been declared sick.
Highlighting a very important aspect, the minister pointed out that the banks usually declare MSMEs sick even without assessing the required RBI’s viability study fund.
The minister also requested the RBI governor to acknowledge the Telangana Industries Health Clinic (TIHC), which has a corpus of Rs 100 crore, as an NBFC (non-banking financial company).
During his visit, the minister also other top industrialists and enlivened them to initiate some investments in the State.
Rao also met Chanda Kochhar, Managing Director and CEO of ICICI Bank and discussed with her about the bank’s participation in the proposed T-Fund, meant to help startups. He further discussed the various initiatives proceeded up by the state government in its efforts for boosting women entrepreneurship in the state.