Telangana Industrial Health Clinic–Helping MSEs treat financial sickness

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Dr B Yerram Raju
Dr B Yerram Raju, Adviser, Telangana Industrial Health Clinic Limited, Government of Telangana,

Telangana Industrial Health Clinic Limited is a pioneering concept design, aimed to facilitate the needs, challenges and efforts of the manufacturing Micro and Small Enterprises (MSEs) within the gamut of industry ecosystem comprising entrepreneurs, industries department, ministry/ government, banks, financial institutions and other stakeholders, says Dr B Yerram Raju, Adviser, Telangana Industrial Health Clinic Limited, Government of Telangana, in conversation with Sudheer Goutham of Elets News Network (ENN).

How did you get the idea of starting Telangana Industrial Health Clinic Limited (TIHL)?

I started my career as a probationary officer in the State Bank of India (SBI) and then moved on to various institutions studying several enterprises and their financial stress management system. I wrote nearly 2000 research-based articles and several books. After years of research and observation, I came up with the idea that the enterprises need some level of external institutional effort to help the MSEs in coping up with bad loans. With this, I approached the government and they decided to appoint me as an advisor of Telangana Industrial Health Clinic Limited.

On realising that the existing institutional mechanisms proved to be inadequate both in spirit and activity to deal with the challenges of the manufacturing MSEs, lead us to fill the gaps with an innovative institution, interventions and instruments through Telangana Industrial Health Clinic (TIHCL), to resolve and prevent the sick and incipient sickness challenges of the enterprises in Telangana.

Tell us about TIHL and its services.

“Telangana Industrial Health Clinic Limited (TIHCL)”, a Fintech driven Non-Banking Finance Company (NBFC), is a ‘diagnositic’ and ‘curative’ industry initiative for manufacturing MSEs, promoted by the State Government of Telangana and anchored by Telangana Industrial Development Corporation (TSIDC).

TIHCL is a pioneering concept design, aimed to facilitate the needs, challenges and efforts of the manufacturing MSEs within the gamut of industry ecosystem comprising entrepreneurs, industries department/dics, ministry/government, banks, financial institutions and other stakeholders.

TIHCL has a corpus of Rs 100 crores fund, with an initial contribution of Rs 10 crores from Government of Telangana, a Rs 50 crores from Government of India and the rest through Equity holding from MSEs, banks and Financial Institutions etc.

TIHCL sets a benchmark in the chapter of ‘inclusive-financing’ by creating a paradigm shift of focus in engaging, rejuvenating and advocating the state of affairs and synergies in manufacturing MSEs.

TIHCL spearheads a key role in the programme of ‘Make in Telangana’

Our services:

Proposing a due diligence of micro and small enterprises through structured formats and effective measures helps DIC’s in capacity building, would pave the way for setting up manufacturing enterprises in clusters

Willing to facilitate and recommend financing requirements for clusters with the banks, Financial Institutions and others

Devising a mechanism for sponsoring and handholding MSE applicants with a due diligence report with connectivity through ‘TS-iPASS’ and ‘Udyami Aadhar’ would merit immediate sanctions

Facilitating MSEs with a true opportunity to establish in clusters propelling employment and entrepreneurship across the projects like Textile Park, Leather Park, Food Park, Pharmaceuticals Industrial City etc.

What are your plans for the next five years?

In the next five years, we would like to go for IPO. We offer 7 percent in the capital invested with us with a locking period of two years. We are now looking for better funds. The Reserve Bank of India (RBI) has directed the banks not to fund non-core areas. We, therefore, have requested RBI to classify the categories into priority and non-priority sections in terms of non-core segments as we cater to the needs of MSEs which falls under a priority area. This would be of great help to us and simultaneously the capital would get greater leverage. We are also requesting investors to come and invest with us as it is a completely new venture.

Do you levy any interest on the SMEs investing with you?

Yes, we charge 5 percent rate of interest, which is much lower than what the bank charge. Banks pay 3 percent handholding charges to us because we are working on their behalf. We are helping the banking in lowering Non-Performing Assets (NPAs) and preserving their capital. Our aim is to bail out 500 enterprises in a year. With this annual target, we are likely to secure the employment of 22,500 employees on an average. We are acting as insurance for the MSMEs.

What are your views on the NBFC100 Tech series of conferences organised by Elets Technomedia?

I believe that these summits are very important in terms of exchange of ideas on various types of technologies that are available. These summits are significant as they help in passing some important recommendations to government pertaining to how technology and human interface are important in services the demands of the customers.

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