The Government wants to protect the micro, small and medium scale industries through the Non-Banking Financial Institution (NBFIs) it has set up as this sector provides 75 per cent of employment.
The NBFI will help these industries to go for the Techno-Economic-Viability study done before being declared as Non-Performing Asset (NPA) by the banks and this will provide some space for revival, IT and MA & UD Minister K.T. Rama Rao said during the Question Hour in the Assembly.
He said that the NBFI is set up with ₹100 crore and with ₹50 crore contribution expected from the Central Government.
ADVERTISEMENT
Each industry reported sick will get a financial assistance of ₹50,000 for revival and efforts are on to offer them loans at three per cent interest rate for less than ₹5 lakh amount.
The Minister said that banks don’t give enough time for the small industries during recovery of loans but the Telangana Government wants these industries to survive and explore all possibilities to flourish given their huge contribution to employment generation.