In an attempt to channelize the required finance to the Micro, Small and Medium Enterprises (MSMEs) in the state, Industries Minister K.T Rama Rao reached out to RBI Governor and called on exploring ways to strengthen the sector.
Rao requested the Reserve Bank of India to consider the Industrial Health Clinics in the state and allot them special status along the lines of Non-Banking Financial Corporation.
The Minister also highlighted the problem of lack of credit to the MSME sector because of which a lot of the units end up becoming sick.
Rao asserted that despite the sector having huge potential, there exist a lot of gap in utilizing the potential due to the lack of appropriate support from the banks.
Citing statistics, Rao informed the RBI governor that of the total 69,999 MSME units in his state, over 8000 have turned sick, hindering the sector’s contribution to the economy. Rao said that these sick units are being provided financial assistance via industrial health clinics that were set up by the government earlier, therefore it is important for the Reserve Bank to recognize the clinics.
The Minister said that the state is focussing on increasing the industrial output and the MSME sector plays an instrumental role, therefore proper credit and support from the apex bank is must in this regard.