Definitions

In this Act unless the context otherwise requires :-(a) 'Artisan and tiny units, Small scale Units and Medium/Large scale Units' mean an Industrial Unit 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 tangible assets like building, etc. and intangible assets like good will; (c) 'Company' means a unit registered under the provision of the law relating to registration of Companies for the time being in force in the State; (d) 'Co-operative Society' means any Co-operative industrial unit registered under the Sikkim Co-operative Society Act, 1978; (dd) 'Diversification' means separately identifiable investment made by an existing unit; (e) 'Fixed investment' means investment made in land, building, plant 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 in plant 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 meeting up the expenditure on day-to-day operation of a unit including cost of inventories, raw materials, component works in progress and operative expenses like wages, salaries, power charges and other recurring expenses; (j) 'Working Capital Loan' means a loan required for acquisition of current assets for meeting day to day requirements of an industrial unit for completing the operation cycle and include cash credit and over draft facilities and any other 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. In the said Act, in section 3.- (i) after clause (d) following clauses shall be inserted, namely:- "(dd) \"Diversification\" means separately identifiable investment made by an existing industrial unit in the fixed capital assets to set up a project for manufacturing of new products (s) provided that the additional investment in the fixed assets is not less than 25% of the gross fixed capital and increase of additional employment is at least by 10%. (ddd) \"Expansion\" of an industrial units means additional fixed unit. For the purpose of calculation, Gross value of all the capital investment made on land, building and plant machinery of the existing unit will be taken into consideration. Expansion shall also imply an increase of at least 25% in the existing installed capacity as well as increase of addition employment of at least by 10%. Prior to going for expansion, the units should be operating at least at a minimum of 80% capacity during the three previous years." (ii) after clause (e), the following clause shall be inserted, namely:- "(ee) \'Modernisation\' means separately identifiable investment made by an existing industrial unit in the fixed capital technology having a definite advantage in reduction of cost of production provided that the additional investment in the fixed assets should not be less than 25% of the gross fixed capital. The incentive available to the unit undergoing expansion/diversification/modernization shall be for the additional investment made and/ or the increase in production over the average of three previous years prior to the year when the unit goes for expansion/diversification as applicable. The year for this purpose shall mean a financial year. The units which have taken up expansion/diversification/modernization plan prior to coming into force of this policy should intimate the concerned agency within three months from the date of implementation of the policy". In the said Act, in sub-section (2) of Section 8, after the words "thrust area units" the words "and to the subject to maximum of Rs. 2 lakhs (Rupees two lakhs)" shall be inserted.