NOTIFICATION
The following Act of the Sikkim Legislative Assembly having received the assent of the Governor of 3rd 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 and large 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)This Act may be called The Sikkim Industrial Promotion and Incentive Act,2000
(2)It shall come into force at once.
Application
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, concessions, incentives or some other package of subsidies etc. for a period of five years under any Notification or Rules or Orders of Schemes etc. shall not be eligible for any benefits under this act.
Definitions
(1) In this Act unless the context otherwise required:-
- "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.
- "Capital" means the total investment of money on tangible assets like building, etc. and intangible assets like good will,
- "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;
- "Co-operative Society" means any co-operative industrial unit registered under the Sikkim Co-operative Society Act, 1978;
- "Fixed Investment" means investment made in land building, plant and machineries and other capital goods;
- "Partnership Firm" means a unit formed by two or more persons;
- "Proprietorship" means a unit owned by a single person’
- "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 or on hire purchase, not exceeding 100 lakhs;
- "Working Capital" means that component 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;
- "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 include cash credit and over draft facilities and any other short term loan required by the industrial unit;
- "Year" means the financial year commencing on the first day of April and ending on the 31st day of March next following.
Disqualification
Where an industrial unit falls 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.
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 or benefits and also shall deal with any issue of recovery, reimbursement or adjustment.
Subsidy of Interest on Working Capital
Where an industry has received or is eligible to receive subsidy on interest, such subsidy 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.
|
Artisan and Tiny Small Scale Units |
Small Scale Units |
Medium/Large Scale Units |
|
Rs.10,000.00 (Rupees |
Rs. 50,000.00 |
Rs. 1,00,000.00 |
|
Ten thousand) or actual |
(Rupees fifty thousand) |
(Rupees one lakh) |
|
Difference in interest |
or actual difference |
or actual, difference |
|
Whichever is less, |
interest, whichever is less |
in interest whichever |
|
|
|
Is less. |
Price Preference
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 same product having same or equivalent quality brought from outside the state.
Subsidy on power
An industrial unit consuming power unto Rs.50,000.00 per annum shall be eligible for 50% reimbursement.
Exemption on security deposit and/or earnest money.
Industrial unit shall be exempted from payment of security deposit and or earnest money in respect of lenders or quotations for purchase of stores by Government Department.
International Standard Organisation/Indian Standard Institute Certification.
The industrial unit shall obtain IndianStandard Institute/International Standard Organisation 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 reimburse 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 of Promotion council, Indian Standard Institution, Commodity Board, Chamber of Commerce.
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
Exemption under Notification No.2/TIC dated the 16th February,1974 will continue.
Periods of exemption
The benefits, concessions or exemptions as conferred under this Act shall be for such period as may be notified by the sanctioning authority. The sanctioning authority may with the approval of the Government from time to time, notify such additional benefits, concessions or exemptions applicable to industrial units as may be considered desirable.
Power to Remove Difficulties
If any difficulty arises in given effect to the provisions of this Act, the Government may be order not in consistent with the provisions of this Act, remove such difficulties.
Repeal
All the notifications, orders, instructions, circulars, schemes etc. issued from time to time for the purpose of extending benefits/incentives/concessions to industry both tiny, small scale or medium/large scale industry are hereby repeated.
By Order of the Governor.
T.D. Rinzing
Secretary to the Govt. of Sikkim,
Law Department
F.No.16(82)LD/2000
