Meghalaya assembly panel finds gaps in industrial loan repayments

A legislative committee's surprise visit to Byrnihat Industrial Area has revealed concerning gaps in loan repayments from companies funded by the state's industrial development corporation, raising questions about the oversight of public money invested in private ventures.

The Committee on Public Undertakings of the Meghalaya Legislative Assembly inspected several industrial units on Friday, focusing on businesses that received financial assistance from Meghalaya Industrial Development Corporation Ltd. The six-member team, led by Brening A. Sangma, discovered a troubling pattern of incomplete repayments that could impact the corporation's ability to fund future industrial projects.

Among the companies visited, only CMJ Breweries Pvt. Ltd. maintained consistent repayment schedules, while other firms showed varying degrees of financial compliance. Greystone Strips Pvt. Ltd. and Greystone Smetters Pvt. Ltd., both previously classified as defaulters, have made only partial payments despite receiving public funding. The committee noted that the managing director of these companies requires direct engagement to address outstanding dues.

The inspection uncovered a critical infrastructure failure affecting Byrnihat Hotel Cum Shopping Complex, where the absence of electricity supply has prevented project completion. This power shortage has created a cascade effect, hampering the complex's ability to generate revenue and meet loan obligations to the state corporation.

The electricity crisis highlights broader infrastructure challenges that could undermine industrial development efforts across the region. Committee members indicated they would escalate the power supply issue to relevant government departments, recognising that such basic utilities are essential for business operations and loan recovery.

The legislative panel included Marthon Sangma, Heavingstone Kharpran, Celestine Lyngdoh, Banteidor Lyngdoh, and Pius Marwein, all of whom emphasised the need for stricter monitoring of public fund utilisation.

Officials stressed that regular loan repayments are crucial for maintaining MIDC Ltd.'s financial health and its capacity to support new industrial ventures. The corporation serves as a key vehicle for the state's economic development strategy, making loan recovery essential for sustaining industrial growth.

The committee's findings suggest that while some businesses successfully utilize public funding, others face operational challenges that prevent them from meeting financial obligations. This mixed performance raises questions about project evaluation procedures and ongoing support mechanisms for funded enterprises.

Moving forward, the committee committed to enhanced oversight and regular monitoring to ensure responsible use of public resources. The inspection represents part of broader efforts to strengthen accountability in state-funded industrial development programs and protect taxpayer investments in private sector growth.