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THE SIKKIM INDUSTRIAL PROMOTION AND
INCENTIVE( AMENDMENT) ACT, 2003
A bill to amend
the Sikkim Industrial Promotion and Incentive Act, 2000.
Be it enacted by the Legislature of Sikkim in the Fifty-fourth year of
the Republic of India as follows:-
Short title
1.
(1) This Act may be called the Sikkim Industrial Promotion
and
and Incentive (Amendment) Act, 2003.
commencement
(2)
It shall come into force at once.
Amendment of
2. In the
Sikkim Industrial Promotion and Incentive Act, 2000,
section 2
(hereinafter referred to as the said Act), section 2 shall be
renumbered as sub-section (1) of that section and in sub-section
(1) as so
renumbered, for the word “five” the word “ten” shall be
substituted and after sub-section (1) as so renumbered, the
following sub-sections shall be inserted, namely:-
“ (2) The Scheme will also be applicable to existing units in case of
diversification, modernization and expansion.”
“(3)” Diversification,
modernization and expansion should entail enhancement in the existing
capacity by at least 25% and the package of incentive admissible to the unit
shall relate to the expanded portion only. For the purpose of this calculation
undepreciated value of the capital investment made on land, building, plant and
machinery of the unit will be taken into consideration.”
Amendment of
3. In the
said Act, in section 3,-
section 3
i) after clause (d) following clauses shall be inserted, namely:-
" (dd) Diversification” means separately identifiable investment
made by an
existing industrial unit in the fixed capital assets to set up a project
for
manufacturing of new products(s) provided that the additional investment in
the
fixed assets is not less than 25% of the gross fixed capital and increase
of
additional employment is at least by 10%.”
(ddd) “Expansion”
of an industrial units means additional fixed unit. For the purpose of
calculation, Gross value of all the capital investment made on land, building
and plant machinery of the existing unit will be taken into consideration.
Expansion shall also imply an increase of at least 25% in the existing installed
capacity as well as increase of additional employment of at least by 10%. Prior
to going for expansion, the units should be operating atleast at a minimum of
80% capacity during the three previous years.”
(ii)after
clause (e), the following clause shall be inserted, namely:-
“ (ee)
“Modernization” means separately identifiable investment made by an
existing industrial unit in the fixed capital technology having a definite
advantage in reduction of cost of production provided that the additional
investment in the fixed assets should not be less than 25% of the gross fixed
capital.
The incentive
available to the unit undergoing expansion/diversification/modernization shall
be for the additional investment made and/or the increase in production over the
average of three previous years prior to the year when the unit goes for
expansion/diversification as applicable. The year for this purpose shall mean a
financial year. The units which have taken up
expansion/diversification/modernization plan prior to coming into force of this
policy should intimate the concerned agency within three months from the date of
implementation of the policy”.
Amendment of 4.
In the said Act, for the existing section
5, the following section
shall be substituted, namely:-
section 5
“Sanctioning
Authority 5
For the benefits/incentives under this Act, the following authorities shall have
the power of sanctioning namely :-
(1)
General Manager of District Industries Centres - up to Rs.10,000/-
(Rupees ten thousand).
(2)
Director of Industries upto Rs. 1,00,000/- (Rupees one lakh)
(3)
Secretary Industries-upto Rs.1,50,000/- (Rupees one lakh and fifty
thousand).
(4)
Minister-In charge, Industries - all cases above Rs.1.5 lakhs to Rs.5
lakhs (Rupees five lakhs)
(5)
There shall be a Committee constituted under the Scheme consisting of the
Minister Industries with Secretary Industries, Secretary Finance and Director
Industries as members who shall sanction subsidies incentive between Rs.5 to Rs.
8 lakhs (Rupees five to eight lakhs).
(6)
All cases above Rs.8 lakhs (Rupees eight lakhs) will be placed in the
Cabinet.”
Insertion of
5.
In the said Act, after section 6, the following sections shall be
new sections.
inserted, namely:-
“Subsidy
on 6A.
An investment subsidy on the total investment shall be
provided on
State Capital
a graded level to the industry. It will be available to
both new as
well as those carrying out expansion, diversification or
modernization activities.
investment
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Artisan and Tiny Scale
Units
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Small Scale Units
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Medium/Large
Scale Units
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a)
15 percent of total capital investment in plant and machinery
subject to a maximum of Rs.30,000/-( Rupees thirty thousand ).
b)
30 percent of total capital investment in plant and machinery
subject to a maximum of Rs.60,000/-( Rupees sixty thousand ) for units set
up by local entrepreneurs.
c)
For units set up in the thrust areas 20 percent of total capital
investment in plant and machinery subject to a maximum of Rs.40,000/- (
Rupees forty thousand).
d)
For units set up in the thrust areas by local entrepreneurs 20
percent of total capital investment in plant and machinery subject to a
maximum of Rs.80,000/-( Rupees eighty thousand )
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a)
10 percent of total capital investment in plant and machinery,
subject to a maximum of Rs. 5 lacs. ( Rupees five lakhs).
b)
For units set up by local entrepreneurs 10 percent of total capital
investment in plant and machinery, subject to a maximum of Rs. 10 lacs. (
Rupees ten lakhs).
c)
For units set up in the thrust areas 15 percent of total
capital investment in plant and machinery, subject to a maximum of
Rs.7 lakhs (Rupees Seven lakhs)
d)
For units set up in the thrust areas by local entrepreneurs15
percent of total capital
investment in plant and machinery, subject to a maximum of Rs.14 lakhs
(Rupees fourteen lakhs)
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a)
5 percent of total
capital investment in plant and machinery, Subject to a maximum
of Rs.10 lacs (Rupees ten lakhs).
b)
For units set up by local entrepreneurs 10 percent of total capital
investment in plant and machinery, Subject to a maximum
of Rs.20 lacs (Rupees twenty lakhs).
c)
For units set up in the thrust areas 10 percent of total
capital investment in plant and machinery, subject to a maximum of
Rs.15lakhs (Rupees fifteen lakhs)
d)
For units set up in the thrust areas by local entrepreneurs 20
percent of total capital
investment in plant and machinery, subject to a maximum of Rs.30 lakhs
(Rupees thirty lakhs)
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Subsidy on
6 B.
(1) In order to encourage and assist industrial units to be self
Captive power
sufficient in their requirements of power, the State generating sets.
Government shall subsidise upto 25 percent of the cost forpurchase
of
captive power generating sets, subject to a
maximum of Rs. 1 lakh (
Rupees one lakh).And incase of units set up by local
entrepreneurs
subsidy will be 50 percent subject to a maximum of Rs.2 lakhs.
(2) Industries
set up in the thrust area shall get a 30 percent
subsidy, subject to a maximum of Rs.1.25 lakhs (Rupees one lakhs and
twenty five thousand). And incase of units set up by local entrepreneurs in the
thrust area subsidy will be 60 percent subject to a maximum of Rs.2.50 lakhs.
Special incentive
6C.
A new unit with fixed capital investment exceeding Rs.3
to the Pioneer
crores set up in a district where there are no medium or large
Unit.
Scale Industries will be given pioneer status. Such unit will be
eligible for additional State Capital Investment Subsidy of 5% of fixed capital
investment subject to a ceiling of Rs.10 lakhs. Such units will also be given
Power Subsidy for an additional period of 2 years.
Special incentives 6D.
Special incentives as detailed below shall be granted to
for women entre-
Women entrepreneurs, namely: -
neurs.
(1)
Additional State Capital Investment Subsidy of 5% subject to a
ceiling
of Rs.5 lakhs which constitute more than 50% of the workforce in
the
industry.
(2)
Additional Interest Subsidy on working capital of 2% subject to a ceiling
of Rs 1 lakh for a period of three years from the date of commencement of
commercial production.
(3)
Built up factory sheds shall be allotted to the women entrepreneur on
priority basis and the rent will be subsidized @ 75% of the economic rent for a
period of five years from the date of commencement of commercial production.
Stipendary
6E. Stipend at the
rate of Rs.500/- (Rupees five hundred) per
support for EDP.
month per trainee shall be provided for training of 100 youth
annually
for special Entrepreneurship Development Programme (EDP) to
be
conducted by Government approved/recognized Institutions subject
to
the condition that the training period shall not be less than 3
(three)
months duration.
Reimbursement of
6F. Small
Scale, Village and Cottage Industrial Units will be reimbursed in
Stamp Duty and
full for the amount paid towards Stamp Duty and Registration Fee for
Registration Fee.
securing loans and other incentives from Financial Institutions
including
mortgage of fixed assets. The reimbursement will be admissible
after
disbursement of loan by Financial Institutions/Banks and will be
subject
to the condition that the assets mortgaged would not be transferred
for
a period of 5 (five) years.
Local employ-
6G. (1)The State
Government will reimburse annually up to 30% (thirty
ment promotion
percent) of the realistic wage bill for local
employees.This would be for grant.
for three years from the date of entertainment.The maximum limit of
such subsidy is Rs.1 lakh (Rupees one lakh).
(2) Fifty
percent of the cost incurred on the training of local employees will be
reimbursed subject to the following conditions, namely:-
(a) Such
trained person being absorbed in the unit, failing which the unit will refund
the subsidy amount paid for the same.
(b)Training
shall be conducted in an Institute
approved by the State Government.
Subsidy on
cost
6H. (1)Cost of Laboratory Equipment for
the purpose of quality control and
incurred on
quality
ISI certification subject to a maximum of Rs. 10,000 (Rupees ten
control
measures.
thousand) per unit will be reimbursed in cases where is does not form
part of the project cost. For local entrepreneurs Rs. 20,000 (Rupees
twenty thousand) per unit will be reimbursed.
(2)
Export oriented units committing to export at least 50% (fifty percent)
of the value of the turnover will be eligible for an additional reimbursement of
Rs.1, 00,000/- (Rupees one lakh) against such quality control measures. For
local entrepreneurs Rs.2,00,000(Rupees two lakhs) will be reimbursed.
Subsidy on
6
I. An industrial unit shall receive a
one-time subsidy on consultancy charge
consultancy
paid to an approved consultant as per the scale note below :
service.
(1)For project upto Rs. 10 lakhs (Rupees ten lakhs) 3% subject to a
maximum of Rs. 20,000/-(Rupees twenty thousand). For local
entrepreneurs 6% subject to maximum of Rs. 40,000(Rupees fourty
thousand).
(2)For project above Rs.10 lakhs (Rupees ten lakhs) 3% subject to a
maximum of Rs. 1,00,000/-(Rupees one lakh). For local entrepreneurs
6% subject to maximum of Rs. 2,00,000/-(Rupees two lakhs).
Subsidy on
6J.
Entrepreneurs sent outside Sikkim with the approval of the Director
study tours
of
Industries for study tours and inplant training shall be
and inplant
eligible for reimbursement of the return journey expenses of
subject training.
class train fare and an allowance of Rs.1000/- (Rupees one thousand)
per mensem per entrepreneur.
Provided that the period of such a study tour/inplant
training should
not exceed
three months and the entrepreneur shall give an undertaking
in writing to
the Department of Industries that he/she shall start an
industrial
unit after obtaining the necessary technical know how of the
industry
concerned.
The study tour and in plant training for a period
not exceeding three months may also be made available for workers who are
sent outside the State:
Provided that the industrial unit sending such workers shall obtain an
undertaking from them that they shall work in unit at least for a period of
three years from the date they complete training. The reimbursement on expenditure on return journey of second
class by train and allowance of Rs.500/- (Rupees five hundred) per workers shall
be eligible to the industrial unit concerned in such cases.
Allotment
6K.
The State Government shall endeavour to provide a developed
of land.
land with all infrastructural facilities at Growth Centres to all new
units except
those in the “Services” and “Village Industries Sector” in the
following
manner, namely :
1)
The developed land will be allotted on lease basis for a period of 30
(thirty) years.
2)
The State Government will subsidise the cost of land development at the
rates given below:
a) Small Scale Industries
________________20%.
b) Export Oriented Unit and Units owned and managed
by local entrepreneurs_30%
c)
Large and Medium Units (as per definition)
- 15%.
3)
The cost of land development will be recovered from the allottee or
Industrial units after framing allotment rules, which shall be notified.
Subsidy on
6L
The State Government shall provide transport subsidy of 50 % for
State Transport.
transportation of Plant and Machineries from any part of India to the
location
of unit in Sikkim maximum of Rs.1 lakh (Rupees one lakh). For
local
entrepreneurs the maximum limit will be Rs.2 lakhs (Rupees two lakhs).
Subsidy for 6M
A subsidy of 50% shall be admissible to meet the cost of technical know -
how
technical know-
obtained by
Small Scale Industrial
Units from organizations
approved in
how.
advance by Government of Sikkim on a case to case basis. The subsidy will
be
released only on commencement of commercial production. The subsidy will
be
60% for Small Scale Industrial Units set up in thrust areas and Export
Oriented
Unit.
Special Incen -
6N Special incentives shall
be granted to the Agro and Food Processing
tives for Agro Industries
as detailed below:
and Food Proce-
ssing Industries.
1.
Additional State Capital Investment Subsidy of 5% subject to a ceiling of
Rs.5 lakhs for agro & food processing industries.
2.
50% of the cost payable for getting Food Product Order (FPO) license/AGMARK/Trade
Mark for the products for food processing industries subject to a maximum
ceiling of Rs.1 lakh.(Rupees One Lakh).”
Amendment of
6. In
the said Act, for the existing section 8, the following section
section 8.
shall be substituted, namely:-
“Power Subsidy
8 1) There shall
be 100% reimbursement of power bill for an industrial unit
consuming up to Rs.50,000/-(Rupees fifty thousand) per annum.
The
reimbursement above Rs.50,000/- (Rupees fifty thousand) shall be to the
extent
of Rs. Rs.50,000/- (Rupees fifty thousand) plus 25 percent of the balance
of
actual payment subject to a maximum of Rs.2 lakhs (Rupees two lakhs).
2)
The State Government shall grant a subsidy of 30 percent power tariff to industrial units coming up in Growth Centre
or Thrust Areas.
3)
50% of the cost incurred on linking of power from the main line to the
factory shed subject to a maximum ceiling of Rs. 50,000/-(Rupees fifty
thousand).
4)
Power tariff to the Industries shall be levied at the cost of production
as and when available.
Insertion of
7.
In the said Act, after section 12, the following section shall be
new section
inserted, namely:-
“Concession on
12A.1) The State Sales Taxes shall be exempted for a period of 10
State and Central
(ten) years from the
date of
commencement of actual
Sales Tax.
Commercial Production. However, for the units set up in the thrust
area, the exemption period
will be 12 (twelve) years.
2) The levy of
state excise duty and sales tax on units manufacturing alcoholic products will
continue as per notification 6/CGO/90/DI/95-96/784 dated 03.10.2000.
3) Exemption
of Central Sales Taxes and Central Excise Duties will be governed by various
Notifications/Orders issued by Government of India in this regard.”
( P.S.Golay )
Minister-in Charge.
Commerce and Industries Department
Government of Sikkim
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