Public Sector Undertakings (PSUs) in Mizoram have long been a subject of discussion in the state’s financial and administrative circles. For decades, most of these government-owned companies struggled with losses, accumulated debts, and operational inefficiencies, placing a continuous burden on the state exchequer.
In August 2026, Chief Minister Lalduhoma publicly acknowledged this reality while inaugurating the MadebyMizo Kiosk in New Delhi. He stated that PSUs in Mizoram had traditionally been a financial burden on the state government. However, he also highlighted that since his government assumed office, significant efforts have been made to reform and strengthen these undertakings. The recent progress shown by ZOHANDCO, he said, is a clear reflection of these reform efforts.
Major PSUs in Mizoram
Mizoram has had a relatively small number of PSUs compared to larger states. The main ones include:
- Zoram Industrial Development Corporation Limited (ZIDCO) – Focused on industrial and infrastructure development.
- Mizoram Handloom & Handicrafts Development Corporation Limited (ZOHANDCO) – Promotes handloom and handicraft products of Mizoram.
- Mizoram Food and Allied Industries Corporation Limited (MIFCO) – Involved in food processing and allied industries.
- Mizoram Agricultural Marketing Corporation Limited (MAMCO) – Originally meant for agricultural marketing.
- Zoram Electronics Development Corporation Limited (ZENICS) – Earlier focused on electronics; later closed.
- Aizawl Smart City Limited – Relatively newer entity linked to urban development.
CAG reports over the years repeatedly pointed out that most of these companies suffered from accumulated losses that had eroded their paid-up capital. Many struggled with delayed finalisation of accounts, weak professional management, and over-dependence on government grants for salary and operational expenses.
Why PSUs Became a Burden
Several structural issues contributed to the poor performance of Mizoram’s PSUs:
- Frequent changes in leadership (Chairmen and Managing Directors).
- Lack of professional and technical expertise in key positions.
- Overstaffing in some cases and shortage of specialised staff in others.
- Limited commercial orientation and market focus.
- Heavy reliance on state budgetary support instead of generating their own revenue.
Reports from the Comptroller and Auditor General (CAG) and the state Assembly’s Committee on Public Undertakings (CoPU) consistently flagged these problems. In 2025, the CoPU even recommended the merger of MAMCO and ZIDCO to reduce losses and improve efficiency.
Reform Efforts Under the Current Government
After the formation of the new government led by Chief Minister Lalduhoma, the administration began focusing on reforming loss-making public enterprises. The approach includes:
- Strengthening professional management.
- Improving marketing and commercial activities.
- Reducing unnecessary financial dependence on the state government.
- Exploring better utilisation of existing assets and manpower.
- Aligning PSUs with central schemes such as the Raising and Accelerating MSME Performance (RAMP) scheme.
One of the more visible examples of this shift is the performance of ZOHANDCO.
ZOHANDCO: A Case of Positive Change
ZOHANDCO (Mizoram Handloom & Handicrafts Development Corporation Limited) was established in 1988 to promote the state’s rich tradition of handloom and handicrafts. For many years, it also faced the same challenges as other PSUs.
In recent years, however, the corporation has taken several forward-looking steps:
- Launched the MadebyMizo.com e-commerce platform to sell products of Mizo artisans and entrepreneurs online.
- Established a physical MadebyMizo Kiosk in Safdarjung Enclave, New Delhi (inaugurated by CM Lalduhoma on 7 August 2026).
- Plans to open similar kiosks in Bengaluru and Kolkata.
- Functions as the State Nodal Agency for the RAMP scheme of the Ministry of MSME.
These initiatives aim to give Mizo products better market access while also turning the corporation into a more commercially viable entity.
The Road Ahead
The reform of PSUs in Mizoram is still a work in progress. Challenges such as accumulated losses, delayed accounts, and the need for professional leadership continue to exist. At the same time, the current government’s emphasis on efficiency, marketing, and reduced fiscal burden marks a clear change in approach.
If the momentum seen in ZOHANDCO can be extended to other undertakings, Mizoram’s PSUs may gradually move from being a financial liability to becoming meaningful contributors to the state’s economy and employment generation.
The story of Public Sector Undertakings in Mizoram is no longer just about losses — it is increasingly becoming a story of attempted turnaround and reform.
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