Delanee D. Nongmalieh

Shillong, April 24: A year ago, the Meghalaya Industrial Development Corporation (MIDC) — a Government of Meghalaya undertaking — was struggling to maintain financial stability as well as handle operations efficiently. Following old practices and standards, the lack of a renewed outlook for the team, inefficient quality control measures in place, as well as bleak industrial networking became an annual story for the corporation, which even reflected poorly in the balance sheets.

A year later, with a new Chairman James P.K. Sangma, new officers at the helm, a new team and with multiple fresh measures in place, on April 22, 2024, MIDC became the first and only state Public Sector Undertaking (PSU) of Meghalaya to receive two of the most prestigious International certifications for quality management and environmental sustainability, the ISO 9001:2015 and ISO 14001:2015.

The transition from a struggling entity to a thriving organisation has not come easy for the
corporation.

Through a series of strategic initiatives, an involved and engaged Chairman, prudent financial management and allowing employees ownership of their work, the turnaround story of MIDC has involved long days of collective brainstorming, identifying strengths and weaknesses of the team and laying down streamlining measures for operations to flow smoothly.

While the turnaround is fresh and hopefully long-term, in this article, some of the key steps
taken by the MIDC will be touched upon to highlight the story of struggles to successes.

Financial Management

The first idea which significantly improved the finances of the corporation was streamlining the balance sheet by understanding which are the key draining factors for the corporation.

One of the strategies involved keeping a tight lid and conducting due diligence for meting out new loans as an NBFC. In fact, the strategy also shifted the outlook of the organisation from a loan-interest earning corporation to an investment-based corporation.

MIDC further enhanced its financial health by securing pending mortgage deeds and collateral, disposing of securities of non-performing assets like Meghalaya Gases, and ensuring timely repayments from major debtors such as Aura Hotels. These efforts were further complemented by MIDC’s proactive recent registration with major credit bureaus like TransUnion, CIBIL and Experian, strengthening its commitment to financial transparency.

Furthermore, the implementation of a selective one-time-settlement (OTS) policy allowed for the strategic writing off of uncollectible debts, some of which have been nearly two decades old.

Such measures have allowed the MIDC to now see a positive balance sheet for financial year 2023-24.

Operational Efficiency

In yesteryears, the corporation was run more like a 9-5 office, with employees concerned about clocking their hours. However, this did not build a strong portfolio for the employees as well as for the corporation. The idea therefore was to identify leaders in teams and give them more responsibility to lead and then credit them for it.

But first, there was a need to identify best practices and for this, the Chairman of MIDC pushed for the formation of an Industry Advisory Council — a body of experts which provided valuable industrial knowledge and network connections.

The combination of the two, helped MIDC take significant strides. For instance, a dedicated
projects team made detailed pitches and presentations for various government schemes at the centre and at the state, targeting core areas of expertise of the corporation.

This led to the approval of three MSME projects from the Centre as well as the approval of other projects from the State, further contributing to operational efficiency and building a pathway towards profitability.

The additional advantage that MIDC hosted was having a Chairman who understood the
functioning of the governance system as well as its pitfalls. Given MIDC had a style of
functioning which did not allow it to move beyond traditional standards, an Enterprise Resource Planning (ERP) system was also commenced to modernise the corporation’s operations, improve data management as well as quicken decision-making processes.
Networking and Strengthening Capacity.

Another vertical which the MIDC strengthened was leveraging the power of networking. With the Chairman of the corporation being a seasoned statesman, this contributed to the pathway of building valuable networks, through strategic collaborations and partnerships.
MIDC’s collaborations with organisations like RITES, WAPCOS and CMPDI have played a
crucial role in borrowing best practices and expertise, more importantly because these
corporations in their own right are some of the biggest organisations of India and have
consistently demonstrated a history of efficiency. These collaborations enabled MIDC to access a wealth of knowledge and resources.

Using such resources, a key aspect of MIDC’s capacity-building strategy has been the
strengthening of its engineering wing. This was achieved through the empanelment of technical advisors, IT experts, architects, and UAV experts as well as the recruitment in important positions in key offices such as Tura and Shillong.

These additions bolstered the corporation’s technical expertise and project execution
capabilities, allowing the leverage of cutting-edge technologies and digital tools to enhance
project monitoring and evaluation mechanisms, making the MIDC an attractive partner for
large-scale industrial projects.

All of these initiatives, along with the state’s latest industrial policy, enabled MIDC to secure
substantial investments, such as the nearly 100 crore investment by Varun Beverages, one of Pepsico’s largest bottling partners, in the Mega Food Park at Mendipathar.

In conclusion, the MIDC turnaround story is a testament to the corporation’s tuning to the fast and changing industrial landscape of the country, along with continuous improvement and innovation, which is still ongoing. While there is still a long way to go and more achievements to be made, as of now MIDC has positioned itself as a key player not only in the state but in the region’s industrial development landscape, adding and contributing to the growth and development of Meghalaya.

(The author is the Managing Director of MIDC)

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