A health clinic in Telangana that revives sick industrial units

KV Kurmanath Hyderabad | Updated on October 06, 2020

Telangana promoted clinic revived 67 micro, small units; 1,800 livelihoods restored

A health clinic in the city is resuscitating life back into the sick micro and small industrial units. Using a technology solution, the health clinic assesses the health of the unit in question and takes a quick call whether it is ready for a revival prescription.

The Telangana Industrial Health Clinic Limited (TIHCL), a venture promoted by the Telangana Government, has so far vetted 220 cases and revived the livelihoods of over 1,800 people.

“Of these, 12 applications were rejected as they were found to be wilful defaulters. As many as 67 units have been aided with revival,” B Yerram Raju, Director of TIHCL, told BusinessLine. While 30 of the 67 units received financial support, the remaining units received strategic consulting and mentoring support.

The industrial health clinic has, so far, disbursed ₹2.83 crore (by end of March 2020).

Raju said, “We handhold all the units for one year or till such time we feel that they are following regulations well and are fully recovered. Several micro and small units hit a roadblock at some point of their journey, forcing them to close the shop. Reasons could range from working capital shortages to bumpy economic conditions.”

The Telangana government set up the health clinic two years ago to revive at least some of the sick units by offering financial support and mentoring.

Tech help

Yerram Raju said the health clinic partnered with Microsoft for technology assistance. Its i-Health application facilitates entrepreneurs to access the product. “What they need to do is answering the in-built checklist. The replies help us to take a call on pick a unit for revival package. If fit for revival, the enterprise will be asked to register on website by paying a nominal fee. Due diligence will be completed within five working days,” he said.

“If need be, the TIHCL would co-finance the margin amount required for release of revival and restructuring funds. It also facilitates the release of pending incentives, if any, from the State Government,” he said.

The TIHCL is in talks with the Nabard and SIDBI to expand its reach. “We hope we will be able to access higher capital by the end of the year,” he said.

Published on October 06, 2020

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