The Telangana government proposed setting up of an industrial health clinic to address the issue of industrial sickness in the MSME sector of the state and sought central government's help for the purpose, an official statement said on Tuesday.

In a letter to Union Minister for Micro Small and Medium Enterprises Kalraj Mishra, Telangana's Industry Minister K T Rama Rao urged the central government to contribute Rs 50 crore as one time grant for Rs 100 crore corpus fund proposed the initiative, it said.

The industrial health clinic will diagnose, aid, facilitate and support the incipient sick enterprises and supplement the efforts of the banks/financial institutions through a dedicated corpus fund with active stakeholder participation, he said.

He also added that the state will contribute Rs 10 crore to the corpus while Rs 40 crore will be raised from industrial associations and stake holders.

Rama Rao sought help for establishing industrial health clinic to resolve the sickness and incipient sickness of MSMEs, pointing out that there is large scale sickness in the MSME sector in the state coupled with lack of interest in revival and rehabilitation of MSEs in particular from the commercial banks.

Principal Secretary Industries and Commerce Arvind Kumar met the Union minister and handed over the minister's letter. He also briefed Mishra about the Telangana government's initiative.

According to an official statement, Mishra assured all possible help from the Centre.