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Telangana Industrial Health Clinic Ltd (TIHCL), a State government initiative, has got RBI clearance to register and function as a non-banking finance company (NBFC).
It will be the first State promoted and co-financing NBFC, according to B Yerram Raju, TIHCL’s advisor and director. TIHCL was floated in 2017 with a corpus of ₹100 crore, which included contributions from the State and Central governments, financial institutions, industrial units and high networth individuals.
Lenders such as Karur Vysya Bank, Vijaya Bank, Canara Bank, Union Bank, SBI and SIDBI have evinced interest in partnering with TIHCL.
TIHCL’s innovative institutional intervention to resolve the stressed assets in micro and small manufacturing enterprises attracted the attention of policymakers at the national level, said Yerram Raju.
It had won the SKOCH Platinum Award in September 2017 under the smart governance category in the MSME segment, he added.
In the past couple of months, its proof of concept resulted in 23 micro and small enterprises contributing to the share share capital to an extent of ₹2.30 lakh.
TIHCL advised these enterprises in the resolution of the stress they faced from banks — the SARFAESI Act 2000 notice was vacated for a few while for others it helped get over stress from improper management decisions, he told BusinessLine .
The Telangana government sponsored it as an SPV of the State Industrial Development Corporation initially and registered it as a public company under the Companies Act of 2013 with an investment of ₹10 crore from the State budget.
TIHCL expects to pursue a multipronged strategy of filling in the credit gap that exists for micro manufacturing enterprises, help small enterprises access equity markets as well as revive and restructure viable manufacturing MSEs.
On the revival front, Yerram Raju said, TIHCL will provide bridge finance, but not to those entrepreneurs who are wilful defaulters.
Monthly targetThe target is to assist 5-10 enterprises a month in every district. In worst cases it will handhold the enterprise for the first year of revival to ensure that the projected cash flows are realised and the financial discipline is adhered to by the viable unit.
TIHCL is emerging as a support entity to help industrial units sustain in the newly formed State, Yerram Raju added.
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