| SIKKIM
INDUSTRIAL DEVELOPMENT & INVESTMENT CORPORATION LTD (SIDCO) |
Introduction
:
Sikkim Industrial
Development & Investment Corporation Ltd. (SIDICO) was set up in
the year 1977 as a company under the Registration of Companies Act,
Sikkim, 1961 for the development of small and medium scale industries
in the State and to perform the twin role of State Industrial Development
Corporation and State Financial Corporation. Financial assistance is
made available by the Corporation for fixed assets such as land, building,
plant and machinery etc. with an ultimate objective of setting up of
industries in the States. The upper limit for grant of loan is Rs.90
lacs for individual units. Term loans are extended to new industrial
units as also to existing units for supporting their expansion, diversification,
modernisation and rehabilitation programmes.
Functions
and Objectives :
-
Promotion, Financing
and Development of tiny, cottage, small and medium sector in the State
of Sikkim.
-
Providing soft
loan/seed capital assistance.
-
Participating
in the equity capital in selective venture projects.
-
Procuring and
distributing raw-materials for selective industries/activities.
Type of industries
eligible for assistance :
Loans are admissible
for undermentioned activities :-
-
Any industrial
activity either manufacture, processing or preservation of goods.
-
Hotels and restaurants.
-
Tourism development
and related activities.
-
Transportation
of passengers and goods.
-
Service sector
units like Computer & Software Development.
-
Diagnostic Centre,
Nursing Home, Medical Equipment.
-
Diagnostic Centre,
Nursing Home, Medical Equipments, Pathological, Clinical Labs, Health Care
Centres etc.
-
Assembling repairing
or packing any articles with the aid of machinery or power.
-
Such other activities
which may be made eligible by IDBI/SIDBI from time to time.
Authorised
and Paid-up Capital :
The authorised
capital of the Corporation is Rs.20 crores. The subscribed and paid-up
capital is Rs.14.74 crores as on March 31, 1999. The Government of Sikkim
is holding equity of Rs.8.37 crores and IDBI Rs.6.37 crores.
Performance
as on March 1999 :
The equity
participation of the Corporation as on March 1999 is as follows :-
No. of Units
: 15
Amount invested
: Rs. 2.42 crores.
The Scheme-wise
classification of loans sanctioned upto 31.03.1999 is reproduced below:-
(Rs. in crores)
| S.NO. |
DESCRIPTION |
NO. |
AMOUNT |
| 1. |
Composite
Loans |
806 |
2.04 |
| 2. |
Small
Scale Industries |
248 |
17.54 |
| 3. |
Hotel
Industry |
430 |
10.11 |
| 4. |
Single
Vehicle Operator |
344 |
3.78 |
| 5. |
Others |
1483 |
5.20 |
|
TOTAL |
3311 |
38.67 |
During the
last few years, the tourism related activities occupy a major place in
sanction and disbursement. The performance of the Corporation for the last
four years is as follows :-
(Rs. in crores)
| S.NO. |
YEAR |
SANCTION |
DISBURSEMENT |
RECOVERY |
| 1. |
1995-96 |
3.26 |
1.80 |
2.05 |
| 2. |
1996-97 |
2.33 |
1.91 |
2.98 |
| 3. |
1997-98 |
1.47 |
1.20 |
2.87 |
| 4. |
1998-99 |
2.13 |
2.09 |
2.41 |
Recoveries
:
The recovery of dues from the assisted units continue to occupy the
prime source of funds for the institution. Better recovery would help the
Corporation reduce its non-performing assets as well as facilitate recycling
of funds which are at present locked up in unproductive assets.
One Time Settlement
(OTS) was pursued as a serious recovery strategy wherever it was found
to be the best available exit route for the Corporation. The Corporation
put special efforts for OTS in respect of old and sticky accounts in order
to facilitate better recycling of funds at current lending rates, although
prima-facie such OTS entailed some sacrifice in respect of accrued interest
etc.
Thrust Areas
:
The State
Government has identified certain thrust areas for concentrated industrial
development which will enjoy additional incentives as under : -
-
Agro-based industries.
-
Floriculture.
-
Animal Husbandry
and Dairy Products.
-
Minor Forest based
produce.
-
Handloom, handicrafts
and village industries.
-
Tourism.
-
Precision oriented,
High Value, Low Volume products.
-
Electronic and
Software.
-
Hydel Power and
-
Tea
State Capital
Investment Subsidy :
An investment
subsidy on the total investment shall be provided on a graded level to
the industry.
It will be
available to both new units as well as those carrying out expansion, diversification
or modernisation activities.
| Artisan
and Tiny Scale Units Units |
Small
Scale Units |
Medium
/ Large Scale |
| 15 percent
of total capital investment in plant and machinery. |
10 percent
of total capital investment in plant and machinery, subject to a maximum
of Rs.5 lakhs. |
5 percent
of total capital investment in plant and machinery, subject to a maximum
of Rs.10 lakhs. |
For units
set up in the thrust areas, a larger subsidy will be provided as follows
:
| Artisan
and Tiny Scale Units Units |
Small Scale
Units |
Medium
/ Large Scale |
| 10
percent of total capital investment in plant and machinery. |
15 percent
of total capital investment in plant and machinery, subject to a maximum
of Rs.7 lakhs. |
10 percent
of total capital investment in plant and machinery, subject to a maximum
of Rs.15 lakhs. |
Subsidy
on Interest on Working Capital :
This subsidy
will be provided for interest in excess of 14 percent of the interest payable
by industrial units on the working capital loan obtained from banks. It
will be provided for a period of 5 years as follows : -
| Artisan
and Tiny Scale Units Units |
Small Scale
Units |
Medium
/ Large Scale |
| Rs.10,000/-
or actual difference in interest, whichever is less. |
Rs.50,000
or actual difference in interest, whichever is less. |
Rs.1,00,000/-
or actual, difference in interest, whichever is less. |
For units
set up in the thrust area, a larger subsidy will be provided as follows
:
| Artisan
and Tiny Scale Units Units |
Small Scale
Units |
Medium
/ Large Scale |
| Rs. 15,000/-
or actual difference in interest, whichever is less. |
Rs. 60,000
or actual difference in interest, whichever is less. |
Rs. 1,10,000/-
or actual, difference in interest, whichever is less. |
Concession
on State and Central Sales Tax :
Central and
State Sales Tax shall be exempted for a period of 7 years, from the date
of commencement of actual commercial production.
Price Preference
:
A price preference
shall be admissible to industrial undertakings established in Sikkim, on
the purchases made by various State Government Departments and Organisations,
over the rates quoted for similar products brought in from outside the
State. The preference will however, be admissible provided the goods are
of equivalent quality to those brought in from outside the state. The preference
will be 15 per cent in case of small scale and tiny undertakings and 10
per cent for all other units.
Subsidy
on captive Power Generating Sets :
In order to
encourage and assist industrial units to be self-sufficient in their requirements
of power
the State
Government shall subsidise upto 25 percent of the cost for purchase of
captive power generating sets, subject to a maximum of Rs.One Lakh. Industries
set up in the thrust area shall get a 30 per cent subsidy, subject to a
maximum of Rs.1.25 Lakhs.
Subsidy
on Power Consumption :
An industrial
unit consuming power upto Rs.50,000/- per annum shall be eligible for 100
per cent reimbursement. For units consuming power above Rs.50,000/- per
annum, the reimbursement will be to the extent of Rs.50,000/- plus 25 percent
of the balance actual payment subject to a maximum of Rs.2 lakhs per annum,
in total.
The State Government
shall grant a subsidy of 30 per cent in power tariff to industrial units
coming up at approved locations or in thrust areas.
Subsidy
on Consultancy Service
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
upto Rs.10 Lakhs : 3 percent subject to a maximum of
Rs. 20,000/-
For Project
above Rs.10 Lakhs : 3 percent subject to a maximum of Rs. 1,00,000/
Subsidy
on Study Tours and Inplant Training
Entrepreneurs
sent outside Sikkim with the approval of the Director of Industries for
study tours and/or inplant training shall be eligible for reimbursement
of the return journey expenses of second class by train and an allowance
of Rs.1,000/- per mensem per entrepreneur.
Provided that
the period of such a study tour/inplant training does not exceed three
months and the entrepreneur shall give an undertaking in writing to the
Department of Industries that he shall start an industrial unit after obtaining
the necessary technical know-how of the industry concerned. The study tour
and inplant 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 obtain an undertaking from them
that they shall work in unit atleast for a period of three years from the
date they complete training. Reimbursement of expenditure on return journey
of second class by train and allowance of Rs.500 per workers shall be eligible
to the industrial unit concerned in such cases.
Exemption
of Security Deposit and/or Earnest Money
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
Departments.
International
Standard Organisation/Indian Standard Institute Certification
The State
Governement shall encourage the small scale industries to obtain Indian
Standard Institute/International Standard Organisation Certification for
their products to enable them to compete at the State and National level.
For this purpose the State Government shall reimburse 100 percent of the
expenditure incurred on registration fee, testing fee, annual licence fee
and purchase of testing equipment, subject to actuals upto a maximum limit
of Rs.25,000/-.This limit shall be Rs.30,000/- for units set up in thrust
areas.
Subsidy
of 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 Standards Institution, Commodity Board, Chamber of Commerce,
etc. shall be reimbursed to the unit, subject to a maximum of Rs.10,000/-
or the actual registration fee whichever is less.
Deferment
of Excise Duty
An industrial
unit shall be allowed to defer State Excise Duty accumulated during the
first three years which shall be recovered in suitable instalments within
the next five years. There shall be no interest on account of the excise
duty so deferred.
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