24th December, 2002
Ministry of Commerce & Industry  


GOVERNMENT APPROVES NEW INDUSTRIAL POLICY FOR SIKKIM


The Cabinet has approved the new Industrial Policy and other concessions for the State of Sikkim, on the lines of the existing North East Industrial Policy in its meeting held recently. Accordingly, the policy for Sikkim has been issued on 23/12/2002. The salient features of the Policy include: Excise & Income Tax exemptions to all new industries as well as expansion of existing units, for a period of 10 years from the date of commencement of commercial production in notified locations. Capital Investment Subsidy Scheme, Central Interest Subsidy Scheme and Comprehensive Insurance Scheme have been extended to the State of Sikkim. NEDFI (North- Eastern Development Finance Corporation Limited) has been designated as the Nodal agency for routing the subsidies/incentives under various schemes notified under this Policy.

Financial concessions under this policy would be extended to identified thrust sector industries in the entire State of Sikkim without any area restrictions. Transport subsidy has already been extended for the industrial units in Sikkim upto 31st March, 2007. However, cigarettes/cigars of tobacco, manufactured tobacco and substitutes, distillation/brewing of alcoholic drinks and manufacture of branded soft drinks and its concentrates have been excluded from availing the financial concessions in the Policy.

Keeping in view the lack of industrial development of the State, there is strong justification in the structured interventionist strategies to accelerate industrial development of the state and boost investor confidence. This Policy would provide the required incentive and enabling environment for industrial development and give a fillip to private investment in the State.