State Profile of Sikkim

Sikkim Industrial Promotion and Incentive Act, 2000 (last updated on 18th February 2020)

Department of Agriculture Marketing and Agri Business

Single Window clearance(https://environmentclearance.nic.in/Staterecord.aspx?)

100% reimbursement of power bill for consuming up to INR 50,000 per annum. For above INR 50,000 the reimbursement will be to the extent of INR 50,000 plus 25% of the balance of actual payment subject to a maximum of INR 2 lakhs.

The State Government shall grant a subsidy of 30% to power tariff to industrial units coming up Growth Centre or Thrust Areas.

50% of the cost incurred on linking of power from the main line to the factory shed subject to a maximum ceiling of INR 50,000.

25% subsidy will be admissible for purchase of Diesel generating sets subject to maximum ceiling of INR 30,000

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.

The insurance premium to the extent of 100% 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.

Cost of laboratory Equipment for the purpose of quality control and ISI certification subject to a maximum of Rs.10,000 (Rupees ten thousand) per unit will be reimbursed incases where it does not form part of the project cost.

An industrial unit shall receive a one-time subsidy on consultancy charge paid to an approved consultant as per the scale noted below:

• For project up to INR 10 lakhs, 3% subsidy subject to maximum of INR 20,000

• For project above INR 10 lakhs, 3% subsidy subject to maximum of INR 100,000

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.

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% income tax and excise duty exemption for a period of 10 years from the date of commencement of commercial production. Thrust Sector Industries are entitled to similar concessions in the entire State of Sikkim without area restrictions

Industrial units shall be exempted from the payment of security deposits and/ or earnest money in respect of tenders or quotations for purchase of stores by Government Department

Government will reimburse annually up to 30% of the realistic wage bill for local tribal employees. This would be for three years from the date of entertainment. The maximum limit of such subsidy is INR 1 lakh.

The State Government shall provide transport subsidy of 50% for transportation of Plant and machineries from any part of India to the location of unit in Sikkim at maximum limit of Rs. 1 lakh (Rupees one lakh). For local entrepreneurs the maximum limit will be Rs. 2 lakhs (Rupees two lakhs).

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)

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 license fees, purchase of testing equipment provided the maximum amount payable by way or reimbursement shall not exceed Rs 25,000.00

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.

A subsidy of 50% shall be admissible to meet the cost of technical know-how obtained from organizations approved in 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.

Export oriented units committing to export at least 50% of the value of the turn-over will be eligible for an additional reimbursement of Rs. 1,00,000/- against such quality control measures.

The State Government will subsidize the cost of land development at the rates given below:

• Small Scale Industries - 25%

• Export Oriented Unit and Units owned and managed by local Entrepreneurs - 30%

• Large and medium Units (as per definition) - 15%