Sikkim to shut down its three sick industrial units

FROM HAALKHABAR.IN

Gangtok, March 10: The state government has decided to shut down its three sick industrial units namely The Sikkim Time Corporation (SITCO), Sikkim Jewels Limited and Sikkim Precision Industries Limited (SPIL) which had become non profitable due to marketing problem since a year. While employees working for these companies will be provided Golden handshake or Volunteer Retirement Scheme in where they would avail a reasonable retirement benefits.

Secretary of Commerce and Industry, MG Kiran today informed of a cabinet committee meeting on March 2 which has resolved to shut down these industries on the recommendation of the government committee on grounds of heavy losses and marketing crisis.

“The market demands of the products manufactured from these companies were very low thus resulting in heavy loss”, he added.

Kiran further informed that inspite of the notification of Finance Commission which is being implemented by the central government mentioning that all governmental companies that are undergoing loss had to be shut down, state department of Commerce and Industries had decided to privatize these companies thereby sending a notification for tender at the national level.

“Five private companies had shown interest in bidding for these three companies but owing to the non fulfillment of the laid criteria mentioned in the tender, the bidders could not qualify to run these companies”, he underlined.

The SITCO was established in 1976 and deals in assembling of Mechanical watches for HMT. The company then expanded their business into manufacturing of mechanical watch crown, semiconductors and manufacture of digital & analog watches in its own brand name.

However, the Sikkim Fruit Preservation Factory at Singtam would now be undertaken by the state government itself. The factory will now be upgraded as the department has decided to not to shut down this factory owing to chances that it may fall onto daily commodities.

Sikkim Jewels Limited was established in 1972. It manufactures the watch Jewels and Cup Jewels. Similarly, the Sikkim Precision Industries Ltd. (SPIL) at Boomtar – Namchi, was first concieved on 1998 for the industrial development and generating employment for the South & West districts. Later on, a high tech project for state was identified and it was decided to establish the new public sector company as to undertake the project. Thus the Sikkim Precision Industries Ltd. (SPIL) was set up.