GOVERNMENT OF SIKKIM

LAW DEPARTMENT

GANGTOK

NO. 18/LD/2000                                                                                 DATED 6.7.2000

NOTIFICATION

The following act of the Sikkim legislative Assembly having received the assent of the Governor on 3^rd day of July, 2000 is hereby published for general information :-

THE SIKKIM INDUSTRIAL PROMOTION AND INCENTIVE

ACT,2000

(ACT NO. 18 OF 2000)

AN ACT

            To make provisions for incentives for tiny, small scale, medium scale and large scale industries set up within the state of  Sikkim.

            Whereas it is expedient to make provisions for incentives for tiny, small scale, medium scale industries set up within the state of Sikkim.

            Be it enacted by the legislature of Sikkim in the Fifty-first year of the Republic of India as follows :-

Short title and commencement.

 1.        (1)        This act may be called the Sikkim Industrial      

                        and Promotion and Incentive Act. 2000

(2)               It shall come into force at once

Application.

2.         This Act shall be applicable to all industrial units existing on the date of commencement of this act and also the industrial unit as may be set up after the commencement of this Act. Notwithstanding anything contained herein the Industries set up prior to commencement of this Act and enjoyed benefits, consessions, incentives or some other package of subsidies etc. for a period of five years under any Noticfication or rules or orders or schemes etc. shall not be eligible for any benefits under this act.

Definitions.                              

3.                  In this act unless the context otherwise requires :-

(a)          “Artisan and tiny units, Small Scale Units and Medium/Large scale units” mean an Industrial Unit as defined by the Government of India from time to time and includes co-operative industrial units.

(b)         “capital” means the total investment of money on tangible assets like building etc. and intangible assets like good will.

(c)          “company” means a unit registered under the provision of the law relating to registration of companies for the time being in force in the state.

(d)         “Co-operative Society” means any co-operative industrial unit registered under the Sikkim Co-operative Society Act, 1978

(e)          “Fixed Investment” means investment made in land, building, plant and machineries and other capital goods.

(f)           “partnership firm” means a unit formed by two or more persons.

(g)          “proprietorship” means a unit owned by a single person.

(h)          “small scale industry” means where the investment in fixed assets in plant and machineries, (i.e. excluding the cost of land, building, etc.) whether held on ownership terms or  on lease hire purchase, not exceeding 100 lakhs.

(i)            “working capital” means that components of fund loan which is required for meeting up the expenditure on day to day operation of a unit including cost of inventories, raw materials, component works in progress and operative expenses like wages, salaries, power charges and other recurring expenses.

(j)           “working capital loan” means a loan required for acquisition current assets for meeting day to day requirements of an industrial unit for completing the operation cycle and includes cash credit and over draft facilities and any other short term loan required by the industrial unit.

(k)         “year” means the financial year commencing of the first day of April and ending on the 31^st day of March next following.

Disqualification.           

4.         Where an industrial unit fails to furnish any information or material particulars or record or document or having received the benefits available under the act is found to have resorted to malpractice or misused benefits of concessions or suppresses or furnishes wrong information or is otherwise found to have not acted bonafide shall be disqualified from availing any benefits or concession or incentive under the Act.

Sanctioning, recovery,reimbursement etc.

5.         Sanctioning authority for benefits/incentives under this Act.shall be such as would be notified by the State Government from time to time who shall also be the authority to receive all applications for such incentives for benefits and also shall deal with any issue of recovery, reimbursement or adjustment.

Subsidy of interest on Working capital.

6         Where an industry has received ar is eligible to receive subsubsidy will be for interest in excess of 14% of the interest payable by the industrial unit on the working capital loan and will be available for a period of five years in the following manner to different categories of industries from the date of obtaining the loan.

Price preference.

7.         Industrial units either small or large set up within the territory of State of Sikkim shall enjoy a price preference to the extent of 15% over the rates of price quoted for the same product having same or equivalent quality brought from outside the state.

Subsidy on power

8.         An industrial unit consuming power up to Rs.50,000.00 per annum shall be eligible for 50% reimbursement.

Exemption on security deposit and/or Earnest money.

9.        Industrial unit shall be exempted form payment of security deposit and earnest money in respect of tenders or quotations for purchase of stores by Government Department.

International standard    Organization/Indian Standard Institute Certification.

10.          The industrial unit shall obtain Indian standard Institute/International standard organization certificate in respect of their products to compete at the state and national level and to ensure product quality and for such the state government shall reimburce 100% of the expenditure incurred on the registration fees, testing fees, annual license fees, purchase of testing equipment provided the maximum amount payable by way of reimbursement shall not exceed Rs. 25,000.00

Subsidy on registration fee on promotion council, Indian Standard Institution, Commodity board, Chamber of commerce.

11.       The amount spent by an industrial unit in obtaining a registration with promotion council. Indian Standard institution. Commodity Board, Chamber of commerce etc. shall be reimbursed to the unit, subject to a maximum of Rs.10,000.00 (Rupees ten thousand ) or the actual registration fee, whichever is less.

Taxation matter.

12.       Exemption under Notification No. 2/TIC dated 16^th February, 1974 will continue.

Period of exemption.

13.                (1)           The benefits, concessions or exemptions are conferred under this act shall be for such period as may be notified by the sanctioning authority.

                     (2)           The sanctioning authority may with the approval of the Government from time to time, notify such additional benefits, concessions or exemptions applicable to industrial unit as may be considered desirable.

Power to remove Difficulties.

14.        If any difficulty arises in giving effect to the  provisions  of this Act, the Government may by the order not in consistent  with the provisions of this Act, remove such difficulties.

Repeal

15.              All the notifications, orders, instructions, circulars, schemes etc. issued from time to time for the purpose of extending benefit/incentives/concessions to industry both tiny, small scale or medium/large  scale industry are  hereby  repealed.

                                                By order of the Governor,

                                                                                                T.D.Rinzing,

                                                                        Secretary to the Government of Sikkim

                                                                                          Law Department.

                                                                                    F. No. 16(82) LD/2000