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DEPARTMENT OF COMMERCE
AND INDUSTRIES
GOVERNMENT OF SIKKIM
No.G.O./2/DI/2002-2003/901
Dated:17/02/03
N
O T I F I C A T I O N
The
Notification/Memorandum issued by Ministry of Commerce and Industry, Department
of Industrial Policy and Promotion, Govt. of India vide No.14(2)/2002-SPS,
dated 23rd December 2002 approving a special package of incentives for development
of Industries in the State of Sikkim, is hereby reproduced for general
information of the public and the entrepreneurs as under:
No.
14(2)/2002-SPS
Government
of India,
Ministry
of Commerce and Industry,
(Department
of Industrial Policy and Promotion)
New
Delhi. Dated 23rd Dec. 2002.
OFFICE MEMORANDUM
Subject:
New Industrial Policy and
other concessions for the state of
Sikkim.
The Government of Sikkim has requested for a special package for
development of industries in the state on the lines for the North East
Industrial Policy notified by the Central Government vide Ministry of
Industry’s OM No.EA/1/2/96-IPD dated 24th December 1997. Discussions on Strategy and Action Plan for
Development of Industries and generation of employment in the State of Sikkim
were held with the various related Ministries on the issues inter alia,
infrastructure development, financial concessions and easy market access.
2. Keeping in view the fact that the State
of Sikkim lags behind in industrial development, a need has been felt for
structured interventionist strategies to accelerate industrial development of
the State and boost investor confidence.
The new initiatives would provide the required incentives as well as an
enabling environment for industrial development, improve availability of
capital and increase market access to provide a fillip to the private
investment in the State.
3. The matter has been carefully
considered by the Government and it has been decided to provide the following
package of incentives for the State of Sikkim.
3.1 Fiscal Incentives to
new Industrial Units and substantial
expansion of existing units:
i)
New industrial units and existing
industrial units on their substantial expansion as defined, set up in Growth
Center, Industrial Infrastructure Development Centers (IIDCs)
and other locations like Industrial Estates, Export Processing Zones, Food
Parks, IT Parks, etc., as notified by the Central Government are entitled to
100% (hundred percent) income tax and excise duty exemption for a period of 10
years from the date of commencement of commercial production. Thrust Sector Industries as mentioned in Annexure-II are entitled to similar
concessions in the entire State of Sikkim without area restrictions.
ii)
All New industries in the notified
location would be eligible for capital investment subsidy @ 15% of their
investment in plant & machinery, subject to a ceiling of Rs.30 lakh. The existing
units will be entitled to this subsidy on substantial expansion, as
defined.
iii)
An interest subsidy of 3% on the
working capital loan would be provided to all new industrial units in notified
locations for a period of 10 years after the commencement of commercial production. This benefit would also be extended to
existing units in notified locations on expansion, as defined, as well as to
Thrust Industries shown in Annexure-II.
iv) The
insurance premium to the extent of hundred percent on capital investment for a
period of 10 years would be extended by the Central Government to all new units
and to existing units on their substantial expansion, as defined.
3.2 Development of Industrial Infrastructure:
(i) The
funding pattern under the Growth Centre Scheme currently envisaging a Central assistance of Rs.10 crore for each centre is raised to Rs.15 crore per centre.
(ii) The
financing pattern of Integrated Infrastructure Development Centers (IIDC)
between Government of India and SIDBI will change from 2:3 to 4:1, and the GOI
funds would be in the nature of a grant, so as to provide the required
infrastructural support.
3.3 The
above concessions/subsidies shall be available to all new units and to the
existing industrial units on their substantial expansion as defined, in the
industrial areas notified by the Central Government ( Annexure-I) and Thrust Industries (Annexure-II) irrespective of
location.
3.4 Ineligible Industries under the
policy:
Tobacco
and tobacco products including cigarettes/cigars/gutka,
etc., Aerated branded beverages, and Pollution causing paper and paper
products
3.5 Nodal Agency
North
Eastern Development Finance Corporation Limited (NEDFI) would be designated as the Nodal Agency for routing the
subsidies/incentives under various schemes notified under this Policy.
Explanation:
(i) The
eligible areas for above concessions and thrust industries are as identified in
Annex-I & Annex- II respectively.
(ii) The
notification regarding definition of substantial expansion of the existing
units shall be issued separately.
4.
Government reserves the right to modify any part of the policy in
public interest.
5.
The Ministry of Finance, Department of Revenue, Department
of Development of North Eastern Region, etc. are requested to amend
Act/rules/notifications, etc. and issue necessary instructions for giving
effect to these decisions.
( K.B.CHETTRI )
Secretary
Commerce and Industries
Govt. of Sikkim
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