TIHCL, saviour of ailing firms
Last financial year, TRICOR approached TIHCL for viability assessment of 26 distressed enterprises, which suffered financial and other constraints, especially in the wake of pandemic
Hyderabad: After helping several Micro and Small Entrepreneurs in reviving their units and improving efficiency, the Telangana Industrial Health Clinic (TIHCL) is now helping Telangana Scheduled Tribes Cooperative Finance Corporation Limited (TRICOR) with the viability assessment of distressed enterprises under its jurisdiction.
This is the first time that TIHCL, which essentially focuses on the revival of MSEs and MSMEs, has now turned attention to helping TRICOR with an assessment of sick units and chalking out revival plans.
Last financial year, TRICOR approached TIHCL for viability assessment of 26 distressed enterprises, which suffered financial and other constraints, especially in the wake of pandemic. It had also sought TIHCLs cooperation in exploring the revival possibilities and unit-wise revival plan, a TIHCL official told Telangana Today.
Despite the moratorium extended by banks on account of the pandemic, many entrepreneurs approached the Tribal Welfare Department seeking additional subsidies and assistance.
In 2018, the Chief Minister’s Schedule Tribe Entrepreneurship and Innovation Scheme was launched by the Tribal Welfare Department to promote entrepreneurship among STs. As part of the scheme, over 60 units were provided financial assistance of up to Rs 50 lakh in the form of government subsidy and bank loans. The entrepreneurs were given business management training by ISB-Hyderabad in collaboration with the State government under the CMSTEI.
Most of the ST entrepreneurs launched their units with an investment of over Rs one crore and a majority of them ventured into the food and beverages business. “In 2019, majority of the units commenced their operations in different parts of the city and districts including Warangal and Khammam.
However, following the Covid impact, most units could not sustain their operations. Apart from the pandemic, many units suffered due to poor financial and operations discipline,” he official said.
During the course of corrective measures, TIHCL interacted with all 26 entrepreneurs and assessed their business models, financial obligations, issues being faced, particularly due to Covid. Based on its assessment, TIHCL recommended a unit-wise action plan for revival. A detailed report of all 26 enterprises was submitted to TRICOR for further monitoring and follow-up.
TRICOR has again sought TIHCL’s assistance this year for the revival of 25 more ST units that are not in the best of health. TIHCL is now replicating last year’s assessment model to come up with solutions for these units, the official said.
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