SIKKIM EARTHQUAKE MANAGEMENT AND REHABILITATION FUND & SIKKIM LAND POLICY FOR PRIVATE SECTOR DEVELOPMENT

GANGTOK, 09 Dec: With the State government having recognized and accepted the fact that Sikkim lies in a highly vulnerable and active seismic zone, certain policy measures have been adopted by the state which includes, importantly, a new model of acquisition of land for industries and other ventures in the private sector.
The state had issued the ‘Sikkim Earthquake Management and Rehabilitation Fund & Sikkim Land Policy for Private Sector Development, earlier this year by which various private sectors including hydel projects and pharmaceutical companies, hotels and other private industries are required to deposit a fixed amount in the Fund before allotment of land and other licenses from the state. This fixed amount has again recently been revised and starts with a minimum of Rs.2.50 crore with local exemption as well. The earlier minimum was at Rs. 5 crore. As stated, the state has felt the need of financial resources for its decision to implement a comprehensive programme for risk mitigation and follow the Bureau of Indian Standards for construction.
As per the new policy, all investors, developers and industries are now required to approach the state through the Land Revenue department or the concerned District Magistrate and they will be allotted land from a Pool of industrial Land Bank which the state will create. The land allotment under the Pool is based on certain conditions which includes that the land will be charged the same rate at which acquired, additional 12.5% supervision /establishment charges per annum and development charges to be incurred by the investor. Interestingly another condition imposed by the state is that the private investor will have to adopt one village for development under Corporate Social Responsibility; this village will be decided by the state.
The depositing of a fixed amount will also be mandatory where the land is acquired directly by the private investor. The amount so collected by the state will go to the Revenue Head and be ploughed back to the state budget head. There may be project specific decisions by the state including exemptions for local applicants.
All individuals, groups, farmers and others wanting to sell their lands will have to submit the details to the Land Revenue Department which will then verify and then initiate the process of acquisition.
The state has also, as part of the new policy, recognized that land acquisition for industrial and infrastructure development also touches on issues intrinsic to development and that additional support and technologies needs to be provided beyond monetary compensation. In this regard the state has resolved for holistic efforts at improving standards of infrastructure all over Sikkim.

Sectors/	Capacity/Earthquake Fund
Hydel/Power Projects	>=25MW & <= 50 MW	>50 MW &    <= 100 MW	>100 MW & <= 200 MW	>200 MW &   < =300 MW	> 300 MW
Amount	2.50 Crores	7.50  Crores	12.50 Crores	17.50 Crores	25.00 Crores
Pharmaceutical Units	Investment 25 to 50 Crores	Investment >50 to 100 Crores	Investment >100 to 200 Crores	Investment >200 to 300 Crores	Investment more than 300 Crores
Amount	2.50 Crores	5.00 Crores	10.00 crores	15.00Crores	20.00Crores
Hotels	Three stars & less	Four Stars	Five Stars	Five Stars Deluxe	With Casino
Amount	Nil	2.50 Crores	7.50 Crores	10.00 Crores	+2.50 Crores
		Local exemption	Local 50% exemption	Local 50% exemption
Other Industries	Investment 25 to 50 Crores	Investment >50 to 100 Crores	Investment >100 to 200 Crores	Investment >200 to 300 Crores	Investment more than 300 Crores
Amount	2.50 Crores	5.00 crores	10.00 crores	15.00 Crores	20.00 Crores
	Local exemption	Local exemption	Local 50% exemption	Local 50% exemption	Local 50% exemption