STATUS REPORT ON ZIDCO

(as on 01.10.2018)

 

                        Zoram Industrial Development Corporation Limited was set up in 1978 under the Companies Act, 1956. It was set up as a twin function Corporation. It is a Private Company owned jointly by Government of Mizoram and Industrial Development Bank of India (IDBI). The percentage of share capital contribution by the Government of Mizoram is 73% which is higher than 51% and the Company comes under the term ‘Government Company’

 

                  The activities of ZIDCO are to assist, finance, protect and promote the interests of Industries in Mizoram and to undertake procurement and distribution of raw materials, to facilitate licenses, establish export and marketing facilities, to acquire and develop plans, power supply and water supply, to co-ordinate between industries, to promote and operate schemes in collaboration with the Govt. of Mizoram, to enter into arrangement with the Govt. of India and Govt. of Mizoram for contracts and licenses.  It is to enter into partnership, business and joint ventures with any other Company, Firm or persons, carrying on manufacturing or other business in sharing of profits within the objects of the Company.  It is to establish any company or syndicate for the purpose of setting up industries. The two outstanding financial liabilities are (i) Repayment of refinance with interest to HUDCO / NMDFC and (ii) Dividend, if any, to be declared to the share holders (IDBI and Government of Mizoram). Efforts are being made to diversity its activities towards mobilization of sources of funds, Industrial Developments and other activities. Registered office of ZIDCO is located at Aizawl, State Capital of Mizoram. Till date ZIDCO is having one Branch office at Lunglei. The Branch Office covers three districts viz- Lunglei, Lawngtlai and Saiha.

                           

                          ZIDCO is governed by Board of Directors appointed by Governor of Mizoram. The Governor also appointed one of the Directors as a Chairman of the Board, Managing Director who is also chief executive of the corporation is appointed as member – Secretary to the Board. The present Chairman of ZIDCO is Pu Lalthlengliana and Managing Director is Pu Lalramsanga Sailo, IRS

1.      Authorized Share Capital    -           20,00,000 Equity Shares of Rs.100/- each

Rs. 20,00,00,000.00

 

2.      Paid up capital                       -           a) Govt. of Mizoram    =          Rs. 1150,10,000/-

                                                                                    11,50,100 shares of Rs. 100/- each

                                                            b) IDBI                        =          Rs. 428,00,000/-

                                                                                    4,28,000 shares of Rs. 100/- each      

                                                            c) TOTAL                   =          Rs. 1578,10,000/-

                                                                                    15,78,100 shares of Rs. 100/- each    

 

3.      No. of employees as on 01.10.2018

Group A                      -           9

Group B                      -           12

Group C and Driver    -           8

Group D                      -           9

Total                           -           38

Contract                      -           2

Grand Total               -           40

 

4.      Govt. Guarantee       -           a) HUDCO                 -           3500.00 lakhs

b) NMDFC                 -           1422.25 lakhs

c) SIDBI                     -           1045.14 lakhs (cleared)

Total                         -           5967.39 lakhs

 

 

5.      Refinance availed from

Financial Institution       -           SIDBI                        -           1045.14 lakhs

NMDFC                     -           1422.25 lakhs

HUDCO                     -           1277.00 lakhs

Total                          -           3744.39 lakhs

 

6.      Overdues/outstanding to

Financial Institution

As on 01.10.2018                   -         i) NMDFC                  -             968.29 lakhs

                                                            ii) HUDCO                 -           1550.00 lakhs

                                                                 Total                    -           2518.29lakhs

 

7.      Loan outstanding  from Loanees

As on 01.10.2018                   -                    NMDFC          -           402.64 lakhs

                                                                        HUDCO         -           706.00 lakhs

                                                                        Total             -           1108.64 lakhs

 

8.      Grant received from Govt. of  Mizoram

for Salary & wages during Financial Year 2018-19   -        Rs. 283.05 lakhs

ZIDCO is now formulating/proposing new projects like (i) Creation of backward and forward market linkage (ii) Transportation of goods inside and outside Mizoram (iii) Project of waste treatment plant thus Hydro-carbon fuel (iv) Project of Training and Skill development of Entrepreneurs (v) ZIDCO is planning to initiate several projects like Infrastructure, Marketing and Location of Industrial Unit in collaboration with reliable Firms or Company.

 

1.      RECOVERY OF LOAN : Recovery of Loan is the main activity of ZIDCO. The officer and staff of ZIDCO are actively performing recovery drive of all loans throughout Mizoram like house to house visit, issue of demand notices and appropriate legal actions to defaulters are taken up from time to time. Since April 2018, Rs 1.7 crore (including Principal and interest) has been recovered from various loanees till date. ZIDCO has approached the State legal services Authority (MSLSA) for settlement of long pending cases through LOK ADALAT. Till date, 142 defaulter cases in total have been sent for settlement and award given in 92 cases. Loanees are being vigorously pursued to abide by the settlement terms and conditions. 

ZIDCO has approached the Government of Mizoram to provide financial support in NMDFC case. Considering that NMDFC is ready to waive interest overdues including penal interest, we would be able to clear our long pending dues with the help of state financial support and our recovery drive. Once the balance is cleared, NMDFC is eager to utilize ZIDCO as the state channelizing agency for attractive fresh loans (Student loans, Agricultural loans) which would be beneficial for the general public.   

 

2.      MULTI-STORIED CAR PARKING CUM SHOPPING COMPLEX


The Govt. of Mizoram has formulated a scheme to reduce traffic jamming in the state capital of Mizoram. For this purpose, Govt. of Mizoram decided to construct Multi-storied Car Parking-cum-Shopping Complex to be funded by HUDCO. The Government has therefore, constituted a committee under the chairmanship of Hon’ble Chief Minister. The state Government then appointed this Corporation (ZIDCO) as an Implementing Agency.

 

The said committee in consultation with HUDCO has decided to start construction in three locations with a total cost of Rs. 3.25 crores. Construction was started and completed in 2010 and already functioned usefully. Loan repayment is going on.

 

3.      CONSTRUCTION OF JNV, SAIHA (MIZORAM) - PHASE-A

 

Navodaya Vidalaya Samiti (An Autonomous Organization of Ministry of HRD) has appointed ZIDCO as a Construction Agency for taking up the Construction of JNV, Saiha (Mizoram) - Phase-A on April 2008.

 

The Project cost is Rs. 1420.43 lakhs. Due to the late arrival of the Architectural & Structural Drawings the construction works started in the month of October 2010. The work is in progress and at present 60% of the construction is completed and the Running Bill upto 10th Running Bill is sanctioned and received which amounts to Rs. 1572.96 lakhs. The Project cost is then revised to Rs. 2774.17 lakhs on 27.3.2017. The construction amounts remaining to be executed will be Rs. 1201.21 lakhs.

 

 

4.      LIQUOR SHOP

The Government of Mizoram, Commissionerate of Excise & Narcotics, Aizawl, Mizoram in exercise of powers conferred by Rule 18 of the Mizoram Liqour (Prohibition & Control) Rules, 2014 has allotted Retail Vending of Liquor Licenses to ZIDCO in 2015.

 

Accordingly, ZIDCO has started Liquor vending business at Millenium Centre on 27th March 2015 for Aizawl District and at Lunglei Venglai on 16th June 2015 for Lunglei District. The approximate financial transactions to this business survey in 2015 and 2016 come to Rs. 6 Lacs per day for Aizawl and Rs. 2.8 Lacs for Lunglei,  now it has come down to approximately Rs. 1.00 lakh per day. The total profit from the two retail vendor is around Rs. 281.00 lakhs (upto 31st March 2018) Also, we expect the income generated tfrom this two Liqour Shop will hopefully finance the salary of the ZIDCO employees.

 

5.      APPAREL AND GARMENTS MAKING CENTRE AT INDUSTRIAL GROWTH CENTRE LUANGMUAL, AIZAWL

 

a)      Ministry of Textile Government of India set up the Centre to 8 (eight) States of North East Region NER under the North East Region Textile Promotion Scheme (NERTPS)

b)      Each Centre consisting of 3 units of 100 machines with 100% Govt. of India funding and the facilities shall be made available to entrepreneurs having background in textile/fashion for starting their Industrial unit with “Plug and Play mode”.

c)      The State Government i/c Industries Department allotted 20,000 Sqm. for this unit at I.G.C. Luangmual, Aizawl (Sakawrtuichhun).

d)      Building of three units was constructed by NBCC with an estimated amount of Rs. 813.00 lakhs and Plant and Machineries also supplied and erected by NBCC with a capital cost of Rs. 612.55 lakhs. (Total amount is Rs. 1425.55 lakhs) The Ministry of Textiles has reserved Rs. 392.00 lakhs for Skill development and Training.

e)      The State Government appointed ZIDCO as project Implementing Agency for the operation of one Skill development and two Productions of the units at the centre.

f)       The unit was inaugurated by Shri Santosh Kumar Gangwar, Hon’ble Union Minister of State for Textiles on 4.6.2016.

g)      For construction of Approach road and internal road of I.G.C., N.E.C. vide order even no. dt. 29.9.2016 approved and estimated cost of Rs. 923.00 lakhs and it is executed by UD & PA Deptt., Govt. of Mizoram.

h)      For electrification and water supply for the unit the project by N.E.C. with a estimated cost of Rs. 43.67 lakhs and Rs. 35.00 lakhs was released to the concerned Department as deposit works and Departments also completed all the required items of work.

i)        Operating Agencies have been selected namely:-

Unit I         :           Vakiria

Unit II        :           Computerized Embroidery

Unit III      :           Vocational School of Education.

Commercial operation has already been started with an employment generation of about 150 persons.

 

The three (3) Operating Agencies have been operating/ conducting Skill development training and promotion since 2017. Apparel & Garment Making Centre at Aizawl is one of the successful units implementing the scheme for promotion of Textiles among the North-East States. The success and implementation of the unit was recognized by the Ministry highlighted in the meeting held by Special Secretary (Textiles) Govt.of India on 17th April 2018, at Udyog Bhawan. Besides the Skill Development being conducted by Operating Agencies, all the three units are having commercial production in a large scale by fully utilizing  available resources, skilled manpower and facilities available at the centre. Moreover, to build up self efficiency in skilling, these units are conducting training of their own and those trained skilled personnel were fully engaged in the Unit with cheaper salary.

 

6.      ENTREPRENEURSHIP DEVELOPMENT SCHEME UNDER NEDP-MEDMOC

In pursuance of the MEDMOC’S decision during the meeting held on 25.4.2017. Action  Plan for the following schemes was submitted on 2.5.2017:-

 

a)      Conducting ESDP on Construction Supervisor Course.

b)      Setting up of Entrepreneurship Knowledge Centre (EKC) at ZIDCO Building.

c)      Organizing MEDMOC Mizoram Outstanding Entrepreneurs’ Award 2017.

 

Accordingly, Principal Adviser Planning and Programme Complementation Department, Government of Mizoram released fund for implementation of the above proposals as under vide No. G. 28011/11/2017/PLG (RDB) / EDS- Dt 25.5.2017.

 

a)      Conducting ESDP on Construction Supervisor Course.   -           Rs 5.50 lakhs

b)      Setting up of Entrepreneurship Knowledge Centre (EKC) -         Rs 12.00 lakhs

c)      MEDMOC Mizoram Outstanding Entrepreneurs’ Award 2017 - Rs 6.00 lakhs

 

a)      Conducting ESDP on Construction Supervisor Course : ZIDCO has conducted ESDP on Construction Supervisor Course during September 2017 and 18(Eighteen) Entrepreneurs have completed the course under the guidance of Course Director, Co-ordinator and  Qualified trainers from various schemes  successfully.

b)      Setting up of Entrepreneurship Knowledge Centre (EKC) at ZIDCO Building : ZIDCO has taken severe action to implement its proposal and as such, the Entrepreneurship Knowledge Centre (EKC) has been established and inaugurated by Hon’ble Minister of Commerce & Industries, Government of Mizoram on 4.9,2017 at the 3rd Basement of ZIDCO Building. The Centre will provide Guidelines and Industrial Data to new Entrepreneurs.

c)      Organizing MEDMOC Mizoram Outstanding Entrepreneurs’ Award 2017 : The  winners of Award (Awardees) has already been selected by a committee under the Chairmanship of Secretary, Planning & Implementation Department for the following categories :-

a)      Entrepreneur of the year 2017-Manufacturing Sector (Man and Woman)

b)      Entrepreneur of the year 2017 - Service Sector (Man and Woman)

c)      Entrepreneur of the year 2017- Innovation Sector                              

d)      Entrepreneur of the year 2017-Social Entrepreneurship Sector

e)      Entrepreneur of the year 2017- Franchise Sector.

 

Each and every sectors shall carry a cash prize of 40,000/- and certificates with mementoes. Distribution and Facilitation of Awards with a Chief Guest of Hon’ble Chief Minister, Mizoram was held successfully on 15.11.2017.

Apart from the above, proposals for Action Plan have been submitted to MEDMOC to be implemented during financial year 2017-2018 at the Entrepreneurship Knowledge Centre (E.K.C.), ZIDCO.

 

Training Component:

a)      ESDP on Construction Supervisor Course

b)      ESDP on Electrical House-wiring

c)      ESDP on Embroidery Course

d)      ESDP on Digital Photography

e)      ESDP on Business Accountancy

f)       ESDP on Event-Managements

g)      ESDP on e-commerce and internet marketing

h)      Entrepreneurship Awareness Programme for Government officers

 

Other Component:

a)      Conducting Industrial Survey in Mizoram

b)      Conducting Skill-Gap Survey in Mizoram

c)      Translation and Publication on entrepreneurship development

 

7.      M/S SENLAR – AN AGENCY FOR MARKETING OF LOCAL PRODUCTS OF HANDLOOM AND HANDICRAFT

ZIDCO received a proposal for financial aid to the tune of Rs. 3.00 lakhs for a trial period of 3 years for consolidation local products of Handloom and Handicraft from Miss Laldampuii co-founder of M/s SENLAR.

The Board of ZIDCO in 175th meeting on 3.11.2016 considered the proposal that having hope of exploring marketing for Small Industries of Handloom and Handicrafts which may generate substantial revenue in the long run. Thus, the Board agrees that ZIDCO will act as the funding agent for all products and sanctioned Rs. 3.00 lakhs taking consideration of terms and condition being executed by the party and ZIDCO.


8.      HPCL PARTNERSHIP WITH ZIDCO

HPCL is a Navratna Status, and a Forbes 2000 and Global Fortune 500 company. It had originally been incorporated as a company under the Indian Companies Act 1913. It’s CIN No. L23201MH1952GOI008858.It is listed on the Bombay Stock exchange (BSE) and National Stock Exchange (NSE), India. HPCL owns & operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai (West Coast) of 7.5 Million Metric Tonnes Per Annum (MMTPA) capacity and the other in Visakhapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards, with a capacity of 428 TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. HPCL in collaboration with M/s Mittal Energy Investments Pvt. Ltd. is operating a 9 MMTPA capacity Refinery at Bathinda with 49% equity and also holds an equity of about 16.95% in the 15 MMTPA Mangalore Refinery and Petrochemicals Ltd. (MRPL).

Hindustan Petroleum Corporation Ltd, Purbanchal Bhavan, Kolkata submitted a proposal to enter into a partnership with ZIDCO for setting up Hindustan Petroleum Outlets in the State of Mizoram. They have expressed their readiness to sign MOU with ZIDCO. The management is considering establishing several outlets in Aizawl and Lunglei. We are actively looking for possible sites in Aizawl and its surrounding areas and Lunglei District.

 

9.      TRAINING AND CONFERENCE CENTRE AT ZIDCO PREMISES

A training and conference centre is proposed to be set up at the vacant plot adjacent to ZIDCO. A concept note for setting up of the centre amounting to Rs 15 Cr has been prepared and sent to the Ministry of Minority and Tribal Affairs, Govt. of India. 100% central assistance is being sought for the same. The management is of the belief that if the project is successful, it would be a very beneficial revenue earning venture for ZIDCO.