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THE SIKKIM INDUSTRIAL PROMOTION & INCENTIVE ACT, 2000
THE SIKKIM INDUSTRIAL PROMOTION & 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 Sikkm.
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 maybe called the Sikkim Industrial 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 maybe 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 subsides etc. for a period of five years under any Notification 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 Units 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 tabgible assets like building, etc, and intangible asets like good will:
(c) “Company” means a unit registered under the provisions of the law relating to registration of Companies for the time being inforce 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, buildings plants 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 inland 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;
(i) “Working Capital” means that component of fund loan which is required for meting up the expenditure onday–today operation current asets for meting day to Day requirements so f an industrial over draft facilities and any other short term loan required by the industrial unit;
(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 another short term loan required by the industrial unit;
(k) “year “ means the financial year commencing on the first day of April and ending on the 31st day of March next following.
Disqualification
4. Where an industrial units 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 bonafied 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 or 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 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 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 Scale units |
Small Scale Units |
Medium /Large Scale unit |
|
Rs. 10,000.00 (Rupees Ten thousand ) or actual Difference in interest Whichever is less. |
Rs. 50,000.00 (Rupees fifty thousand) or actual difference interest Whichever is less |
Rs. 1,00,000,00 (Rupees one lakh) or actual, difference in interest, whichever is less. |
Price preferenct.
7. Industrials 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 form outside the state.
Subsidy on power
8. An industrial unit consuming power upto 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 from payment of security deposit and or 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 reimburse 100% of the expenditure incurred on the registration fees, testing fees, annual licence fees, purchase of testing equipment provided the maximum amount payable by way of reimbursement shall not exceed Rs. 25,000,.00
Subsidy on Registration Fees of Promotion Council, Indian Standard Institution, Commodity Board, Chamber of Commerce,
11. The amount spend 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 the 16th February, 1974 will continue.
Periods of Exemptin
13. (1) The benefits , concessions or exemptions as 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 units as maybe considered desirable.
Power to Remove Difficulties.
14. If any difficulty arises in giving effect to the provisions of this Act , the Government ay by 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 it industry both tiny, small scale or medium /large scale industry are hereby repealed.
