The Hindu Business Line : 28 cos keen on setting up industrial units in Sikkim

Gangtok May 22 The Sikkim Government's efforts to encourage investments in the State with its attractive package of incentives and facilities are bearing fruit.

The Chief Minister, Mr Pawan Chamling, has indicated that about 28 companies have shown interest in setting up industrial units in the State. "Only recently, Nestle has shown interest in investing in Sikkim. They have agreed in principle to set up some units here," he revealed.

Industrial policy

Speaking at the third Government Formation Day here, Mr Chamling said that the State Government's thrust area has been industrial development of this tiny Himalayan State.

"We have a comprehensive industrial policy in place which is in accordance with the economic needs of the State and which ensures sustainable development of the State.

"We have identified certain thrust areas for concentrated industrial development, which will enjoy additional incentives from our government," he said.

The thrust areas include agro-based industries, animal husbandry and dairy products, minor forest-based products, handloom, handicrafts and village industries, tourism, precision oriented, high value, low volume products, electronics and software, hydel power and tea.

Packaging unit

He also said the State Government was planning to invest in a tetra pack unit.

This has been prompted by the lack of packaging units in the region and the growing number of food processing units coming up in the State. A ready-to-drink passion fruit in tetra pack, a product of the Sikkim State Co-operative Supply and Marketing Federation Ltd (SIMFED), is being presently packaged in Bhutan.

Mr Chamling, who also holds the Finance and Economic Reforms portfolios, indicated that, as part of its policy of encouragement, the State Government would provide 99 years' lease to industrial units in the State.

Sikkim provides transport subsidy for all new industrial units for five years, and exemption from power tariff for units with consumption of up to Rs 25,000 per annum.

Sales tax exemption is also provided for five years to new industrial units, as part of its industrial policy.

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