PAKYONG AIRPORT APPROVED BY CENTRE

Construction of a Greenfield Airport at Pakyong, Sikkim
--------------------------------------------------------------------------------

The Cabinet Committee on Economic Affairs today gave its approval for construction of a Greenfield Airport at Pakyong, about 35 kms from the State capital (Gangtok). The new Greenfield airport at Pakyong with 1700 mtrs. long runway and with two parking bays will be operational for ATR 72 type of Aircraft operation in fair weather condition. The Terminal building would be able to handle 100 passengers (50 arriving and 50 departing) at a time.

Sikkim is a land locked State with connectivity only by road. It is also one of the two States in the country which has no civil airport. The nearest airport is at Bagdogra (Defence airport with Civil Enclave). Due to hilly terrain and weather related problems, the road connectivity to Sikkim is frequently interrupted. The State also shares long international borders with Nepal, Bhutan, and China. Further, Sikkim has substantial tourism potential due to its scenic and natural beauty. As such, direct air connectivity to Sikkim is essential from socio-economic and strategic considerations. Besides, direct air connectivity would also promote tourism and other economic activities in the State.

sOURCE:pib)

LAST DATE OF FILING OF INCOME TAX RETURN EXTENDED

Last Date of filing of Income Tax Returns extended in Sikkim
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The Central Board of Direct Taxes have extended the last date of filing of income tax returns, due by 31st July 2008, to 31st October 2008 in the state of Sikkim in view of the delay in issuing of Instruction No.8/2008 in respect of filing of income-tax return by non-Sikkimese residing in that state.

(Source: PIB)BSC/SS/GN/242-08

NINE FM LAUNCHECD IN SIKKIM

Nine FM launches in Sikkim


Kolkata headquartered Chinar Circuits has launched its FM station Nine FM in Gangtok on 24 September, making it the first FM radio station in Sikkim.

Nine FM CEO Bobby Gupta announced the launch of the states's first FM station at a press conference in Gangtok on Thursday. The station will be broadcast on 91.9 FM MHz.

Addressing the press, Gupta said, "True to our motto “Your Song, Your Voice", all programmes of Nine FM will be highly interactive. Listeners will be encouraged to call in live or write in through e-mail and SMS to share their views on different topics. Nine FM will also provide the opportunity to the common people of Sikkim to place their requests to listen to their favorite songs, which they want to listen or dedicate to their loved ones."

"Nine has put together the largest ever collection of Nepali music. We also have compiled a large gallery of English and Hindi music," he added.

The broadcast and production facilities at Nine FM have been designed and installed by Clyde Broadcast, Glasgow, UK and the transmission equipment has been procured from Harris Corporation, Quincy, USA. The station has installed dedicated software for scheduling of music, sequencing and playing out.

Chinar circuit started its ground activity for Nine FM a month ago to build awareness around the brnad. It had recently started ‘The Nine Freedom Rock tour 08' in collaboration with the Sikkim State Aids Control Society on 17 August in the Sikkim capital in the presence of known personalities of Sikkim.

The station launched teasers in the Sikkim Manipal University, to reach out to the target audience.

Among the other stations poised for a Gangtok launch are SFM and Radio Misty.

CHAMBER THANKS BUSINESS COMMUNITY FOR SUCCESSFUL BLACK BAND PROTEST ON INCOME TAX IN SIKKIM

Chamber of Commerce thanks members for supporting ‘black band protest’

Sikkim Express Report

GANGTOK, September 25: The executive committee of Sikkim Chamber of Commerce (SCS) has thanked all the business establishments and individuals from all over Sikkim for having made the phase II of the protest on Direct Taxes, a grand success.

The Protest was observed all over the State on September 14 and 25 by the entire business communities by wearing ‘black bands on arms and display of protest and demand posters’ in their business premises.

SCS general secretary Suresh Agarwal in a press release said that the protest was orderly, smooth and peaceful.

PROTEST INCOME TAX BEGINS IN SIKKIM

Trading community begins phase II

Staff Reporter ( Sikkim Express)
GANGTOK, September 24: Sporting black bands, the business community here led by Sikkim Chamber of Commerce (SCC) today submitted a reminder plea to the Governor appealing for resolve the issues that had arisen after the implementation of Income Tax Act, 1961 in Sikkim.

The black bands and memorandum submission marks the beginning of a two day protest activities by the business community as part of its phase two programmes to highlight its concerns over the Income Tax issue.

As announced earlier, around 35000 business community members residing in Sikkim today carried out their normal works branding two symbols of its phase two protest – black bands in their arms and protest poster stuck inside their business outlets.

Most of the business community members here seen around with blank bands and posters stuck inside commercial outlets. Reports from the other urban areas of Sikkim were also similar.

“We had an overwhelming response in the first day, the protest was carried out smoothly without any disturbances in all the four districts of the State”, said the SCC president SK Sarda.

Some local business people also supported the SCC protest by wearing black bands.

In its representation to the Governor, the business community expressed its anguish over the action of the Centre to define old settlers of Sikkim as ‘non Sikkimese’. The old settlers prefer to be denoted as ‘left out Sikkimese’ and their reference as ‘non Sikkimese’ may please be discontinued, the body pleaded to the Governor.
The SCC also reminded the Governor of its earlier representation of August 20.

The Governor was appealed to recommend the concerns of the business community to the Union Finance Ministry for resolving the issue at the earliest.

Similar representations were submitted to the Chief Minister, Gangtok Income Tax Officer, Chief Secretary and the Additional Chief Secretary.

Reiterating their demands, the SCC president said that the Union government must exempt to 400 families of old settlers residing in Sikkim before merger took place on April 26, 1975. These families had been inadvertently left out, he said.

The other demand of the business community was the Income Tax 1961 should be implemented in Sikkim on a prospective date as assured by the Union Finance Minister and not from this financial year.

Mr. Sarda expressed the hopes of the business community is ‘very hopeful’ that an appropriate solution will soon come from Centre.

( sOURCE: sIKKIM eXPRESS)

MEMORANDUM ON INCOME TAX ISSUE SUBMITTED TO GOVERNOR,CM

SIKKIM CHAMBER OF COMMERCE
M.G.MARG, GANGTOK,SIKKIM

DT 24 September 2008

PRESS RELEASE


A delegation of Sikkim Chamber of Commerce submitted a memorandum addressed to His Excellency, The Governor of Sikkim in the office of Rajbhawan, Gangtok this afternoon.

The memorandum drew the attention of His Excellency in respect of difficulties in compliance of Direct Tax laws in Sikkim.

“ May we take the liberty of reiterating here that review of the matter is of utmost importance in view of need to include prospective taxpayers of Sikkim in the National mainstream and this task can only be accomplished by a progressive, systematic and logical approach that may be acceptable to the first timer prospective assesses.”

The memorandum further says:

“It is once again most fervently submitted that in the interest of natural justice, the Act be made applicable from accounting year 2009-2010, uniformly on “non-Sikkimese” individuals and “other persons” as defined in Indian Income tax Act “

Attention of His Excellency has been drawn in respect to the pending demand to exempt from Indian Income Tax the 400 families of old settlers residing in Sikkim before the merger date i.e., 26th April 1975 who have been inadvertently left out.

The Old Settlers conveyed to the Government of India through His Excellency, The Governor of Sikkim its heartfelt grief for having been referred as “NON SIKKIMESE INDIVIDUALS” and the OLD SETTLERS would prefer to be denoted as “LEFT OUT SIKKIMESE” and their reference as “NON-SIKKIMESE INDIVIDUALS” may please be discontinued , as they have an inseparable bond and sense of belonging with the soil of Sikkim, with highest regard for its Monarchs who always held them in high esteem and most of us know of no other home.

The delegation also submitted similar memorandum to the office of Hon’ble Chief Minister of Sikkim and to Income tax Office.


( Suresh Agarwal)
General Secretary
Sikkim Chamber of Commerce
Gangtok

SCC SUPPORTS SIKKIM BANDH ON 29TH SEPTEMBER 2008

SIKKIM CHAMBER OF COMMERCE
M.G.MARG, GANGTOK,SIKKIM

DT 24 September 2008

PRESS RELEASE


The Business Community of Sikkim in its executive meeting held on 23rd Sept 2008 strongly condemned the incident of burning of an effigy of our Hon’ble Chief Minister Dr Pawan Chamling at Siliguri last fortnight.

Sikkim Chamber of Commerce has decided to support the proposed Sikkim Bandh on 29 September 2008 being held to register protest on this account.

All shops and commercial establishments save and except emergency services shall keep their shutters down.


( Suresh Agarwal)
General Secretary
Sikkim Chamber of Commerce
Gangtok

10 things god won't ask for

10 THINGS GOD WON'T ASK

1.God won't ask what kind of car you drove; He'll ask
how many people you drove who didn't have
transportation.

2.God won't ask the square footage of your house,
He'll ask how many people you welcomed into your home.

3.God won't ask about the clothes you had in your
closet, He'll ask how many you helped to clothe.

4.God won't ask what your highest salary was, He'll
ask if you compromised your character to obtain it.

5.God won't ask what your job title was, He'll ask if
you performed your job to the best of your ability.

6. God won't ask how many friends you had, He'll ask
how many people to whom you were a friend.

7. God won't ask in what neighborhood you lived, He'll
ask how you treated your neighbors.

8. God won't ask about the color of your skin, He'll
ask about the content of your character.

9. God won't ask why it took you so long to seek
Salvation, He'll lovingly take you to your mansion in
heaven, and not to the gates of Hell.

10.God won't ask how many people you forwarded this
to, He'll ask if you were ashamed to pass it on to
your friends.

Happy moments, praise God.
Difficult moments, seek God.
Quiet moments, worship God.
Painful moments, trust God.
Every moment... thank God.

PHASE II PROTEST ON INCOME TAX TO START IN SIKKIM

Lineage record for cut off year safeguard

Staff Reporter
(SIKKIM EXPRESS)

GANGTOK, September 22: Spiking up their level of protests, every member of the 35000 odd business community living in Sikkim will wear black bands and stick protest posters inside their business premises on September 24 and 25 to protest against the ‘discrimination’ meted out to the community by the Union government while implementing Income Tax Act 1961 in this Himalayan state.

Every business community member in Sikkim will wear black bands and display protest posters in their premises on September 24 and 25 to highlight our two main demands, said Sikkim Chamber of Commerce (SCC) president SK Sarda today in an emergency meeting of the body.

A large gathering of business community members from all the four districts had gathered at a local hotel here to accord their consent to the second phase of their protests in the Income Tax issue.

Volunteers have been selected by the body to oversee the preparations for the Gandhian protest in the State. Surveillance teams will also operating to see whether the protests are being followed by the business community members spread all over the State.

“Please don’t feel shy while wearing black bands. The band must be worn by the members continuously for two days at all places. The protest posters must be placed inside the premises”, Mr. Sarda told the gathering.

The SCC president also sported a black band today to signal the second phase of the protest by the business community here for their demands.

The first demand of the business community is – exemption of Income Tax for the 400 families of old business community and old settlers living in Sikkim before April 26, 1975, the date the erstwhile kingdom merged with India.

The second demand is for implementation of Direct Tax Laws to other non-exempted people of Sikkim on a ‘prospective date’ and not on April 1, 2007 as directed by the Union Finance Ministry.

The Union Finance Minister had said on the floor of the House that the Income Tax Act 1961 will apply on prospectively, said Mr. Sarda.

The SCC president also claimed that business community of Sikkim has been bracketed into ‘Non Sikkimese’ category by the Union government in the Finance Act. “This soil is our Sikkim. We have born here and will die here”, he said.

The old business community living here for generations should not be defined as ‘Non Sikkimese’ but as ‘Left out Sikkimese’, Mr. Sarda. The ‘Non Sikkimese’ description will not be accepted at any costs, he said.

During the second protest phase, the business community will also be submitting a reminder memorandum the Governor, Chief Minister and all concerned in the Union government urging them to redress the issue to its logical conclusion.

The business community had already submitted a memorandum to the Union Finance Minister on August 27 through the Sikkim Income Tax Office during the first phase of its Gandhian protest against the discriminations meted out to them.

Even after passage of a reasonable time, nothing conclusive has emerged from the Centre and delay on this will simply add difficulties both for the prospective tax payers and the administrator, said Mr. Sarda.

It may be recalled here that earlier this year, the Centre had exempted Sikkim subject holders from paying Direct Income Tax by passing an amendment in the Finance Bill of 2008.

People of Sikkimese origin having Sikkim subjects have been exempted from Direct Taxes as per the 26AAA clause paving way for the Act to be enforced in the state.
The era of Direct Taxes began in Sikkim with the Central Income Tax office starting its operations from August 6.

Old business community numbering to 400 families and other people working in the state represents a huge chunk of those people who do not have Sikkimese subjects and thus have to cough up taxes now as per Income Tax Act 1961.

This has triggered strong resentment among the local business community who do not have the Sikkim subjects or Certificate of Identifications though they have been living in the state for generations.

“Is this (discrimination) is our reward or punishment though we are living here since generations. It is very unfortunate. We (old business community) are also sons of this soil and have some rights”, said Suresh Agarwal, SCC general secretary to the gathering.

“We have become sacrificial lambs and it is a blot to the democracy”, he added.
On the need for a cut off year to segregate old business community from the rest, the SCC general secretary proposed for a safeguard exercise to chronicle a record
base of those business community members living in Sikkim since generations.

Stressing that this particular exercise is highly sensitive, Mr. Agarwal said that it is very important the members to know their history in Sikkim. An internal preparatory survey will be done to prepare our records and we will be ready to submit the records whenever the declaration process for a cut off year begins, he said.

The proposal was unanimously passed by the gathering.

PHASE II OF INCOME TAX PROTEST LAUNCHED IN SIKKIM

SIKKIM CHAMBER OF COMMERCE
M.G.MARG, GANGTOK,SIKKIM

Dated:22nd SEPT.08

PRESS RELEASE



ANNOUNCING PHASE II OF PROTEST ON INCOME TAX ISSUE


Under the aegis of Sikkim Chamber of Commerce a packed gathering of about 300 delegates of business enterprises and old settlers assembled at Gangtok on 22 Sept 2008 and approved going in for Phase II of the Protest on Central Income Tax Issue.

It is important to recall here that on 27th August 2008, more than 800 delegates of business enterprises, small and big and old settlers from all over Sikkim had assembled at the Newly Opened Income Tax Office at Gangtok and submitted a copy of memorandum addressed to Hon’ble Finance Minister Shri P Chidambaram seeking implementation of Income Tax Act from a future date and consideration of exemption from income tax for old settlers residing in Sikkim prior to date of merger i.e., 26th April 1975 .

The meeting noted with deep concern that even after passage of a reasonable time period from date of submission to the Ministry of Finance, nothing conclusive has emerged from Government of India and delay on this account would simply add difficulties both for the prospective tax payers and the administrator.

SCC in its memorandum had drawn attention of the Hon’ble Finance Minister to the difficulties that would be faced in compliance of Direct taxes in the State of Sikkim, if made applicable retrospectively from 1.4.2007.

The Chamber drew the attention of the Hon’ble Finance Minister to his speech made in Lok Sabha on 29th April 2008 wherein he had promised that:

“This( Income Tax Act 1961) will apply only prospectively”

The Sikkim Income Tax Manual 1948 ceased to operate only on 16th June 2008 and also in light of assurance of the Finance Minister in the Parliament for prospective implementation, the order for assessing the non- Sikkimese individuals from the accounting year 2007-08 is not just and has created much anguish and confusion leading to a state of helplessness to co-operate in such unpractical situation

Quoting the White Paper on Implementation of Direct Taxes in Sikkim, the SCC had submitted that in the course of discussions with Government of India on the implementation of direct tax laws in Sikkim, the State Government had rightfully requested as under:

“ The State Government would however like to reiterate its request that sufficient time should be given, before the direct tax laws are implemented, to create an awareness in the State on implementation of the direct tax laws and to educate and mentally prepare the people of the State of the new system of taxation and at the same time allow the State Government to sort out the transitional issues.”

It is regretful that quite inadvertently such an important issue raised and request made thereupon by Government of Sikkim, in larger public interest, was ignored and Instruction No 8/2008 dt 29th July 2008 was issued by CBDT unilaterally.

The general body drawn from all over Sikkim, therefore, resolved to continue with the Gandhian way of movement and unanimously agreed to launch the Second Phase of Protest on 24th and 25th September 2008 by wearing black band on arms and displaying Protest Posters in their premises, demanding from Government of India:

1. Exemption from Income Tax- also for old settlers, government officers and old businessmen of Sikkim.

2. Implementation of direct tax laws on other categories from accounting year 2009-2010.

In the reminder addressed to the Finance Minister the Chamber has held that review of the matter is of utmost importance in view of need to include prospective taxpayers of Sikkim in the National mainstream and this task can only be accomplished by a progressive, systematic and logical approach that may be acceptable to the first timer prospective assesses.

The Chamber has sought to further remind the Hon’ble Finance Minister that the issue of exemption from Indian Income Tax to 400 families of old settlers residing in Sikkim before the merger date i.e., 26th April 1975 who have been inadvertently left out is pending settlement and is under active consideration of both the Union and the State Governments.

The general body also decided to submit memorandums to His Excellency the Governor of Sikkim as well as to Hon’ble Chief Minister and all concerned in Union Government urging them to redress the issue to its logical conclusion.

The meeting thanked Hon’ble Chief Minister Dr Pawan Chamling and Government of Sikkim for their positive approach in the matter which shall go a long way to solve the issue.

(Suresh Agarwal)
General Secretary
Sikkim Chamber of Commerce

4TH NORTH EAST BUSINESS SUMMIT AT GUWAHAT

4th North East Bussiness Summit to begin in Guwahati on Monday, the 15th of September
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The 4th North East Business Summit is to be held in Guwahati on 15-16th September 2008. The fourth North East Summit is to be organized by the Department of North East Region, DoNER in collaboration with the Indian Chamber of Commerce, ICC, Kolkata.

The main objective of the summit is to showcase the potential of the NE States and to promote private sector investments. The fourth summit will primarily focus on sectors such as tourism, food processing, power, infrastructure, information technology, handloom and cottage industries especially in the context of the Look East Policy on trade and investment linkages with ASEAN and SAARC countries. A special session on "North East on Fast Track - Building International Partnership" with special reference to Bangladesh, Myanmar, Nepal, Bhutan, Thailand, Cambodia, Laos, Vietnam, Malaysia, Singapore, Brunei, Indonesia and Philippines to discuss mutual cooperation will be the main attraction of the Summit. Governors and Chief Ministers of all NE States are likely to attend. Eight foreign Ambassadors and about 50 foreign delegates would be attending the event. More than 200 private participants from North East region and near about 175 outside the North East region will also participate in the event. The highlights of the summit include Chief Minister’s Conclave, International Session with Minister of Commerce of Cambodia, Ambassadors from Thailand, Brunei, Singapore, Malaysia, Laos, Indonesia, Myanmar, Vietnam, Czech Republic, Arab League and Bhutan, Special Thai Investment Session, Specific sessions on Infrastructure, Agro & Food Processing, Tourism, IT & Skill Development, One-to-One discussions among prospective investors (both from Northeast & Foreign), banks, government officials, and corporate representatives, State Government Investment Hubs and an Exhibition-showcasing Northeast. Cultural evening will be based on the rich art, culture and heritage of the people of the North Eastern States – and to bring about a cultural integration with the rest of the country. “Thai Night” reception and cultural show is being organized by the Royal Thai Embassy, New Delhi.

The 4th. Business Summit has been brought closer to the people and the Governments in the North East. It is expected that the Summit would focus the problems of the region with greater emphasis and try to find an integrated development programme in line with the “VISION 2020” document released by the Prime Minister recently.

This year, emphasis has been given on the trade and economic relations of the North East with the neighbours with a focus on the ASEAN countries. The North East is considered a gateway to the East for the Indian sub-continent and hold a brighter future.

The new Industrial policy of the Government for the North East is exclusive for the 8 states and offers a host of attractive incentives for the investors to tap the vast natural resources of the region.

The NER is not only suitable for large investments in manufacturing in the traditional areas where it has enjoyed competitive advantages but also in the sectors of agriculture, education, health and tourism, where private investment has immense opportunity. Agro processing, post harvest technology and transportation, super-specialty health care, higher education, and tourism are amongst the most promising sectors for investment. As 80% of the population of the region is engaged in agriculture, investment in infrastructure, manufacturing and services will provide alternative off-farm sources of employment and create a tertiary and service sector that is so essential for development. Investors and governments must participate in the development of infrastructure through the Public Private Partnership model, particularly in the construction and communication sectors.

Source: PIB, New Delhi)

Sikkim Cabinet Meeting held on 30th August 2008

Proceedings of the Cabinet Meeting held on 30th August, 2008, at 3.00 PM in the Cabinet Hall, Tashiling Secretariat, Gangtok, Sikkim.

The following Cabinet Members were present.

1. Dr. Pawan Chamling, Chief Minister of Sikkim, Department - Home, Finance, Revenue and Expenditure, Development Planning, Economic Reforms & North East Council Affairs etc.

2. Shri Dorjee Dazom Bhutia,Minister (Department-Land Revenue& Disaster Management; Urban Development & Housing Irrigation and flood Control)

3. Shri Garjaman Gurung, Minister, (Department Human Resource Development Cultural Affairs & Heritage)

4. Shri Hishey Lachungpa, Minister, (Department-Health Care, Human Services and Family Welfare; Social Justice, Empowerment and Welfare)

5. Shri Prem Singh Tamang, Minister, (Department - Building and Housing; Sports and Youth Affairs)

6. Shri Ram Bahadur Subba,Minister (Department -Law, Parliamentary Affairs

Commerce and Industries Department)

7. Smt. Kalawati Subba, Minister, (Department-Animal Husbandry, Live Stock, fisheries & Veterinary Services; Food, Civil Supplies and Consumer Affairs).

8. Shri Menlom Lepcha, Minister, (Department-Water Security & Public Health Engineering; Transport).

9. Shri Somnath Poudyal, Minister, (Department-Food Security & Agriculture Development ; Horticulture an~ Cash Crops Development).

10. Shri Karna Bahadur Chamling, Chief Whip

SOCIAL JUSTICE, EMPOWERMENT & WELFARE DEPARTMEN

Proposal seeking sanction and approval to release Rs.1 00.00 lakh (Rupees one hundred lakhs) only for construction of twenty five Bhutia and Lepcha houses. The unit cost of each house as approved by the Cabinet on 17.05.08 is Rs. 3, 97,000/- (Rupees three lakhs ninety seven thousand) only, The cabinet approved and sanctioned the above proposal.

Proposal seeking approval and sanction Rs.3, 09, 78,188.00 lakhs (Rupees three crores nine lakhs seventy eight thousand one hundred and eighty eight) only to implement sixty schemes covering 5585 Scheduled Tribes beneficiaries of 30 Constituencies of the State. Due emphasis has been given to the development of diary, horticulture and agriculture sectors in line with the policy of State Government. The cabinet approved the above proposal and sanctioned the said amount.

Proposal seeking approval and sanction of the following ;

1. Approval and sanction of Rs.24.00 lakhs (Rupees twenty four lakhs) only for construction of eight Model Houses for eight Lepcha families of Yuksom Constituency in West Sikkim under Tribal Sub-Plan. The cabinet approved the above proposal and sanctioned the said amount.

2. Approval and sanction of Rs. l, 55, 20,125/- (Rupees one crore fifty five lakhs twenty thousand one hundred and twenty five) only for implementation of “Total Sanitation Campaign “in East and West District of Sikkim under Tribal Sub-Plan, has been approved and sanctioned by the cabinet.

3. Approval and sanction of Rs.204.10 lakhs (Rupees Two hundred four lakhs and ten thousand only for implementation of “Special Programmes for Rural Development under Tribal Sub -Plan (TSP) and Scheduled Caste Sub-Plan (SCSP)”.The cabinet approved the above proposal and sanctioned the said amount.

4. Approval and sanction of Rs.88.69 lakhs (Rupees eighty eight lakhs sixty nine thousand) only for construction of motorable approach road from Tashiding- Labdang SPWD road to Residential Tribal School at Gangyab in West Sikkim at an estimated cost ofRs.43.69Iakhs (Rupees forty three lakhs sixty nine thousand) only and Extension and augmentation of RWSS at Yangthang at an estimated cost of Rs.45.00 lakhs (Rupees forty five lakhs) only under Tribal Sub-plan.The cabinet approved the above proposal and sanctioned the said amount.

5. Proposal seeking approval and sanction of Rs.857.78 lakhs (Rupees eight hundred fifty seven lakhs and seventy eight thousand) only and 80% advance to STCS in respect of purchase of GCI sheets, under Tribal·-Sub Plan and Scheduled Caste Sub-Plan. The cabinet approved the above proposal and sanctioned the said amount.

6.Proposal soliciting sanction and approval to transfer Rs.130.00 lakhs (Rupees one hundred thirty lakhs) only to Water Security & Public Health Engineering Department for implementation of schemes under Scheduled Caste Sub -Plan Schemes under two chargeable head:

1. 2215-01.789- 00.00.51 Urban Water Supply: Four schemes (4) Total Rs. 113.25 lakhs (Rupees one hundred thirteen lakhs and twenty five thousand) only

2. 2215-02.789-61.00.53 PHE Urban Sanitation.: Three schemes (3) Total Rs. 16.75 lakhs (Rupees sixteen lakhs and seventy five thousand) only. The cabinet approved the above proposal and sanctioned the said amount.

7.Proposal soliciting approval and sanction of Rs.190.00 lakhs (Rupees one crores ninety lakhs) under TSP and Rs.63.50 lakhs (Rupees sixty three lakhs and fifty thousand) only under SCSP, to conduct demonstration on balanced and integrated use of Bio- fertilizers and Organic Manures in the private agricultural holdings of ST and SC farmers. The demonstration will cover 6333 hectares of ST land in the State.15832 Scheduled Tribes farmer are proposed to be benefited. Similarly, the department proposes to cover 2117 hectares of Scheduled Caste land directly benefiting 5292 SC farmers. The cabinet approved the above proposal and sanctioned the said amount.

8.Proposal seeking approval and sanction of Rs. 74, 50,000/-(Rupees seventy four lakhs fifty thousand) only for construction of Tribal Community Hall at Tathangchen, Gangtok under Tribal Sub Plan. The cabinet approved the above proposal and sanctioned the said amount.

ENERGY AND POWER DEPARTMENT

Proposal seeking administrative approval and financial sanction of Rs.36.79 lakhs (Rupees thirty six lakhs seventy nine thousand) only providing street lights along the road from Deorali Bazar to Chorten/ Tibetology compound, Deorali, Gangtok. The cabinet approved the above proposal and sanctioned the said amount.

FINANCE REVENUE AND EXPENDITURE DEPARTMENT

Proposal seeking approval of the Draft rules namely, ‘The Sikkim Ecology Fund and Environment Cess (Amendment) Rules, 2008’ to amend the Sikkim Ecology Fund and Enviroment Cess Rules, 2007. The cabinet has approved the above proposal.

ROADS AND BRIDGES DEPARTMENT

Proposal seeking revised administrative approval and financial sanction of Rs.1,63,95,214/­(Rupees one crore, sixty three lakhs, ninety five thousand, two hundred and fourteen) only with an additional financial sanction of Rs. 3,14,0.00/-(Rupees three lakhs, fourteen thousand) only for the work “Surface Strengthening and Carpeting of Ravangla -Ralang Road km1st to 13th in South Sikkim has been approved and sanctioned by the Cabinet.

Proposal seeking administrative approval and financial sanction of Rs.28, 06,000/- (Rupees twenty eight lakhs, six thousand) only, for the work “Surface improvement, widening, drainage, carpeting and protective work on Tarku Damthang road Km 13th to19th in South Sikkim has been approved and sanctioned by the cabinet

Proposal seeking approval and sanction of Rs.37,52,400/-(Rupees thirty seven lakhs, fifty two thousand, four hundred)only for carry out protective works on Approach road to JNV school at Phodong in North Sikkim has been approved and sanctioned by the cabinet.

TOURISM DEPARTMENT

Proposal seeking administrative approval and financial sanction of Rs. 85, 35, 365 (Rupees eighty five lakhs, thirty five thousand, three hundred and sixty five) only for payment of land compensation for development of tourist spot at Dalapchand in East Sikkim and Cultural Village at Tharpu in West Sikkim has been approved and sanctioned by the cabinet.

PARLIAMENTARY AFFAIRS DEPARTMENT

Proposal seeking administrative approval to revise the TA/DA admissible to the members of cabinet, Speaker, Deputy Speaker and Members of Sikkim Legislative Assembly in accordance with the recommendation of Special Review Committee and to bring necessary amendments in the Sikkim Ministers, Speaker, Deputy Speaker and members(TA) Rules, 1977 has been approved by the cabinet.

FOOD SECURITY & AGRICULTURE DEVELOPMENT DEPARTMENT

Proposal seeking administrative approval and financial sanction of Rs.24.00 lakhs(Rupees twenty four lakhs )only for the implementation of Establishment of Agency for Reporting Agriculture Statistics (EARAS) for 2008-09. The cabinet approved the above proposal and sanctioned the said amount.

HUMAN RESOURCE DEVELOPMENT DEPARTMENT

Proposal seeking administrative approval and financial sanction to create proposed 121 post of teaching and non teaching staff with the financial implication per annum to the tune of Rs. 178. 12 lakhs( Rupees one crore seventy eight lakhs and twelve thousand) only subject to allocation of fund under supplementary grant, the cabinet approved the above proposal and sanctioned the said amount.

COOPERATION DEPARTMENT

Proposal seeking confirmation of the approval to sign Memorandum of Understanding(MOU) by the State Govetnment with Government of India and ‘NABARD ‘for implementation of Vaidyanathan Committee Report for revival of Short Term Cooperative Credit Structure, has been approved by the cabinet.

URBAN DEVELOPMENT AND HOUSING DEPARTMENT

Proposal seeking administrative approval and financial sanction of Rs.743.32 lakhs (Rupees seven hundred forty three lakhs thirty two thousand) only for development of Infrastructures at Bazars and Rural Marketing Centers in the State under Rural Infrastructure Development fund-XIII which is sanctioned by NABARD has been approved and sanctioned by the cabinet.

DEPARTMENT OF HEALTH CARE, HUMAN SERVICES &FAMILY WELFARE

Proposal seeking administrative approval and financial sanction of Rs.62.56 lakhs (Rupees sixty two lakhs fifty six thousand) only for procurement of Operating Microscope of Moller- Wedet for Ophthalmic Surgery at STNM Hospital Gangtok, has been approved and sanctioned by the cabinet.

TRANSPORT DEPARTMENT

Proposal seeking administrative approval and financial sanction of Rs.2.20 crore (Rupee, two crore fifty lakhs) only for fleet replacement and augmentation under Sikkim Nationalized Transport and to release advance payment as per the terms of offer accepted by the Department has been approved and sanctioned by the cabinet.

CULTURAL AFFAIRS AND HERITAGE DEPARTMENT

The Proposal of the department to introduce a new scheme called “Samajeek. Sewa Bhatta covering an average of 30 beneficiaries from each constituencies .The. total I beneficiaries for this scheme shall be 960 in the current financial year and this will be continuing scheme for future. Each of the beneficiaries shall be given an allowance of Rs.500/-(Rupees five hundred) only per month. The scheme shall be implemented w.e.f 1 st September 2008. The total financial liability shall be Rs.28.80 lakhs (Rupees twenty eight lakhs and eighty thousand) only in the current financial year.

It is now’, submitted for according approval and sanction to implement the scheme under the name and style as “Samajeek Sewa Bhatta”, The cabinet approved the above proposal and sanctioned the said amount.

Proposal seeking approval and sanction of four traditional houses at the rate of Rs. 50.00 lakhs (Rupees fifty lakhs) only to Newar, Tamang, Scheduled Caste and Mangar and to release 50% of the grant as first installment has been approved and sanctioned by the cabinet.

HORTICULTURE AND CASH CROPS DEVELOPMENT DEPARTMENT

Proposal seeking approval and sanction of Rs. 410.00 lakhs (Rupees four hundred and ten lakhs only for the construction of low cost Bamboo Playhouses under “Plan Programme” and Technology Mission 2008-09 has been approved and sanctioned by the cabinet.

Proposal seeking approval and sanction of Rs.250.00 lakhs (Rupees two hundred and fifty lakhs) only for providing price support and subsidy to the vegetables, fruits and flower growers in the state of Sikkim, has been approved and sanctioned by the cabinet.

DEPTT. OF PERSONNEL, ADM.REFORMS, TRAINING, PUBLIC GRIEVANCES CAREER OPTIONS &EMPLOYMENT, SKILL DEVELOPMENT AND CHIEF MINISTER’S SELF EMPLOYMENT SCHEME

The proposal seeking approval to transfer the fund of Rs.12.00 crores to the following two schemes meant for the Educated Unemployed:

1. Rs.10.00 crores to the Chief Minister’s Self Employment Scheme (CMSES).

2. Rs.2.00 Crores to the Comprehensive Educational Loan Scheme. The cabinet has approved the above proposal.

The proposal relates to the list of educated unemployed youth of Sikkim, who has been given Comprehensive loan scheme in the year 2007-08 and 2007-08. The scheme was launched in 2007-08.During 2007-08, 46 students were granted loans amounting to Rs.332.80 lakhs and during 2008-09 (till January 2008) 49 students have been granted loans amounting to Rs 4,59. 84 lakhs. The loans were sanctioned from the funds transferred by the Directorate of Capacity Building. The cabinet has approved the above proposal

OTHER BUSINESS

The cabinet also observed two minutes silence in memory of those who lost their lives in the flood at Bihar. The Chief Minister expressed his deep anguish over the loss of so many lives and properties. The Cabinet on behalf of the people and the Government of Sikkim has decided to contribute an amount of Rs. One crore towards the relief and rehabilitation of those affected by this tragic catastrophe. In addition to this, Members of Council of Ministers have also volunteered to contribute their one month’s salary towards this cause.

IPR News Service

IPR No 144/IPR/08-09

INDIA NEW MANTRA-TALK MORE WORK MORE

Nearly 300 million and counting. That's the number of Indians walking around with a cell phone in their pockets. Today, one in four Indians has a mobile. It's said that by 2020, every employed adult in the country would have one.
From the villager sitting atop his half-drowned hut calling for help in flood-hit Bihar, to the kabadiwallah who hands you his number, it’s mobile networking like never before.

It virtually reverses the socialist mantra 'talk less, work more', that many Indians half-believed for years. Now, the new Indian chant may be 'talk more, work more'.

"The mobile is to India what the motor car was to America," says social scientist Shiv Viswanathan. It has opened up the world to the mohalla and vice versa. "There's a tremendous opening up of space," he says. But does more networking automatically mean more productivity?

Yes, says Aditya Dev Sood, CEO of Bangalore-based Centre for Knowledge Societies (CKS), a research and design-consulting company. He says the mobile's "greatest impact would be on those people with professions that are time, location and information sensitive. For example, the owner of a hair salon can manage with just a landline phone, but for a dealer in flowers, the prices of which can vary from morning to evening, the mobile can help keep track of the rates."

The mobile phone in India's pocket can do all this and more — fishermen wanting a weather update or the location of the best catch; hospitals contacting patients without a permanent address; matchmaking companies dispatching profiles of potential mates to subscribers; SMSes on the Sensex. Information, services, profits - you name it, you have it, in the palm of your hand.

It is true that network coverage and mobile penetration are still limited to certain areas. But, interestingly, as a two-year-old study by CKS showed in Maharashtra, UP and Karnataka, many new mobile-users belong to poorer areas with scarce infrastructure and facilities, high levels of illiteracy and low PC and internet penetration. Sood says productivity rises because mobiles help counter the biggest challenge an aspirational society can face - inaccessibility.

"Financial deals done over mobiles reduce transaction costs and enhance productivity. Mobiles are part of the organized sector already; they can also transform the informal economy substantially," says Sood.

Unsurprisingly, there are parts of India where farmers hire mobile phones in the right season, when market prices need constant monitoring and they need to negotiate deals with wholesale buyers.

Is the mobile phone a means of empowering the people, then? Not yet, says C P Chandrashekhar, professor at the Centre for Economic Studies and Planning, JNU. He says the mobile cannot minimize India's crying need for basic infrastructure.

"Why should rural children be happy with getting class lessons via mobile? Why shouldn't they aspire to classrooms, furniture etc?" asks Chandrashekhar.

Viswanathan agrees, saying "All mobiles are not equal." But he adds that the mobile phone is a minor tool of empowerment in that it helps people make their own world better. The mobile is the new equity, concludes Sood, because it facilitates greater participation in the economy.

Why ever not, when the world is in your pocket.

( sOURCE: eCONOMIC tIMES)

TIME TO ROLL BACK PETROLEUM PRICES

TIME TO ROLL BACK PETROLEUM PRICES

by:S.K.SARDA
President: Sikkim Chamber of Commerce

The sharp decline in crude oil prices is good news for India.
India’s trade deficit has grown to a worrisome level because of a rise in the oil import bill. And government finances, too, are under strain because of fuel subsidies. So, the recent drop in global crude oil prices should give the economy some breathing space on both fronts.

The underlying cause of lower oil prices is weak demand, as less fuel is burnt in a slowing global economy.

The Crude Oil prices which were hovering at $ 70 per barrel, a year back suddenly started its uptrend to $ 90 in Jan this year and then speeded up to $ 147 on 11th July 2008. Economic forecaster then put the price end December at $ 200 per barrel.

But luck has it; the inflationary pressure put by the rising crude on the prices of raw materials and then on the final consumer prices dampen the demand leading to declining crude prices. The economists now say that the price can head down to $ 90. It is currently at $ 108 per barrel on 3rd Sept 2008.

We all know that in the modern times all products that we consume have a smaller or larger impact of crude prices. Transportation which contributes more than 30% in the product prices is bound to roll up the prices of end product in the hands of consumers.

In the process all suffers- manufacturer, transporter and then finally the consumer. The man sitting at the end of the ladder suffers the worst.

It is, therefore a good news that when the festive season is about to set in soon, crude prices are going down in the international market.

But in India, where the prices are controlled, unless the Government announces the reduction of petroleum prices, the benefit cannot come down to the street.

It is surprising that when the crude prices jumps up, Union Government decides to immdly make it effective on the pockets of consumers, but on the other hand when crude prices decline, their is no rush to reduce the prices. The government thus wants to profiteer and delays the reduction. This is not at all good.

The common man is already suffering from 12.5% inflation. His hard earned money is already eaten up by the rising prices. The festive season is about to come in. It is, therefore, urgent to reduce the prices of petroleum products . Crude oil is already on the downward trend in the international market.

Let us encash it to spread joy on the faces of the unorganized Indian masses who had a difficult time this summer. The Government should not fall into the trap of oil companies, who are out to make profits.

INCOME TAX CONFUSION IN SIKKIM PERSISTS

IT confusion not only limited to non-exempted category
Assessee stares at penalties

Amalendu Kundu
GANGTOK, September 2: Although the Centre has implemented the Central Income Tax Act (1961) into Sikkim after a gap of 18 years, all the stakeholders including the state government seems to be confused over the assurances made by the Union Finance Minister for ‘prospective implementation’ of the order for assessing the non Sikkimese from the accounting year 2007-08.

The state government has already ceased its Sikkim Income Tax Manual 1948 on June 16 this year.

As per the amendments made in the Central Income Tax Act, Sikkim Subject holders have been exempted from paying Direct Taxes.

The confusion among those non-exempted people stems from the amendments made in the Central Act itself and assurances given by Union Finance Minister himself in the Parliament.

Enacted section 10 (26 AAA) is not in conformity with the Finance Minister’s statement that the Central Act would be applicable here with ‘Prospective Effect’ since the enacted section suggest that the tax is applicable from April 1, 1991.
After various representations, Central Board of Direct Tax (CBDT) issued a notification on July 29 this year in which it clarified that the Act would be applicable from April 1, 2007.

Unfortunately again one has to understand here complications which would arise by virtue of the aforesaid notification.

Problem seen here is that the financial year 2007-08 (period from which tax has been levied) has already concluded on March 31, 2008. The last date of submitting Income Tax returns for assesees not covered by statutory provisions of ‘AUDIT’ being July 31, 2008 has already lapsed and the assessees covered by Audit is fast approaching on September 30 this year.

Defaulters will have to face penalties under various provisions of Central Income Tax Act.

Secondly, as per the provisions of the Act, tax has to be deducted at source (TDS) while making payments to employee (salary), contractors, freight, commission, rents, royalty, interest and others. The said TDS has to be deposited with the Central Government within the due date, latest by the end of the financial year.

In case no TDS is made or if made but not deposited by the end of the financial year, then the entire expenditure is to be disallowed u/s 40(a) (ia) of the Central Income Tax Act and the assessee (if govt or non govt) is liable to pay tax to the same.

As Central Income Tax Act has introduced recently none of the assessee in the state of Sikkim have deducted tax under the Act and depositing the same to the credit of Central government one has to obtain a Tax Deduction Number (TAN) and a PAN, which no one has obtained.

Now the question raised is whether the entire claim of such expenditure will be disallowed and the assessee would be asked to pay tax and penalties?

If we go by the language of section 10 (26 AAA) and subsequent Notification dated September 29, 2008, the exemption granted is to ‘Sikkimese Individual’ and the ‘Non Sikkimese Individual’ (upto AY 2008-09).

The question arises to the taxation of persons ‘other than individuals’ those being HUF's, Firms, Corporates. Will such entities face taxation retrospectively?
It is opined that the spirit of the Union Finance Minister was not to exclude such ‘other persons’. A clarification in this respect should come from the CBDT to avoid litigations and future complications.

According to renowned chartered accountants from Kolkatta, all the government or non government organizations will be entitled to deduct tax on payments made to persons whether Sikkimese or a non Sikkimese. Such payments may be of various natures like salary, Contractual, Rent, Commission, Consultancy, Interest etc.

Such Individuals will have to file their Income Tax Returns under the provisions of the Income Tax Act, 1961 and can claim refund of tax if it is proved to the satisfaction of the Income Tax Department that their income is exempt by virtue of sec 10(26AAA) or otherwise.

So now it is understood that every individual will face the doors of the Income Tax Department. Needless to say that large scale confusion remains unsorted with both the salaried as well as business organization community about implementation of deduction or non deduction of tax as source, said the chartered accountants.

Similarly the amendments made for Sikkim never mention any concession for the exempted Sikkimese people as to whether Wealth Act 1957 would also be applicable.
Even non deduction of TDS during financial year 2007-08 by government organization, semi government organization and non government organization will entail disallowance of expenditure and consequent levy of taxes and penalties.

Sikkim Chamber of Commerce has already submitted a memorandum to Union Finance Minister through Gangtok Income Tax Office requesting exemption for old business community at par with Sikkim subject holders and prospective implementation of the Central Income Tax Act on a later date to prepare the people who have to pay taxes mentally.
Source: Sikkim Express)

SCC MEMORANDUM TO FINANCE MINISTER

27thAugust 2008


Hon'ble Shri P Chidambaram
Finance Minister
Government of India
North Block
New Delhi 110 001


Sub: Implementation of Direct Tax laws in the State of Sikkim.
Ref: Difficulties in compliance


Hon’ble Sir,


We beg to refer Hon’ble Finance Minister’s speech in the Lok Sabha on 29th April 2008

“This( Income Tax Act 1961) will apply only prospectively”

Sir, the Income tax department has set up office in Gangtok on 6th of August 2008. We were given to understand that incomes of non Sikkimese individuals commencing from accounting year 2008-2009, would now be assessed by this office.

Subsequently, we came to know from the press that instruction No 8/2008 dt July 29, 2008 issued by CBDT directs that all non-Sikkimese individuals shall be assessed in accordance with the provisions of the Income tax Act 1961, for the accounting year 2007-08 and subsequent years.

However, the Government of Sikkim vide circular No 2/Fin/Adm dt 16th June 2008 intimates “And therefore, consequently, the Sikkim Income Tax Manual of 1948 shall not be acted upon any further in respect of any assessee within the State, with immediate effect.”

As the Sikkim Income Tax Manual 1948 ceased to operate only on 16th June 2008 and also in light of the Hon’ble Finance Minister’s assurance in Parliament for prospective implementation, the order for assessing the non Sikkimese individuals from the accounting year 2007-08 is not just and has created much anguish and confusion leading to a state of helplessness to co-operate in such unpractical situation.

In response to the queries of the Finance Ministry, GOI, on the Income tax issue Shri T T Dorjee IAS, Additional Chief Secretary, Government of Sikkim,on 16.4.2007 had rightfully written: “ The State Government would however like to reiterate its request that sufficient time should be given, before the direct tax laws are implemented, to create an awareness in the State on implementation of the direct tax laws and to educate and mentally prepare the people of the State of the new system of taxation and at the same time allow the State Government to sort out the transitional issues.”

It is regretful that quite inadvertently such an important issue raised and request made thereupon by Government of Sikkim, in larger public interest, in course of negotiations to arrive at the referred package, was ignored and the said Instruction No 8/2008 dt 29th July 2008 was issued by CBDT unilaterally.

Sir, your goodself would appreciate that we have been accustomed to our simple 10 page Sikkim Income tax Manual 1948 and quite understandably the people of Sikkim would require at least a few years of study and education to understand and be mentally prepared to operate as per a totally new, complicated and Greek voluminous Indian Income Tax Act 1961.

Even after 46 years since the Indian Income Tax Act was enacted in 1961, people at large in most States of India are finding difficulty in compliance and are often entangled in appeals and litigations a n d expecting the simple individuals of Sikkim to comply with the Act overnight at the switch of a button is definitely not meeting ends of natural justice or befitting our democratic nature.

Under the facts and circumstances stated above, we are to humbly submit:

For smooth and meaningful implementation and also to include the prospective assesses from Sikkim in the National Mainstream, an extensive education and awareness programme comprising of workshops and seminars to cover the prospective assesses be conducted in all nooks and corners of the State over a period of atleast two years, such that we are adequately educated and mentally prepared to contribute to development of the Nation a n d the Act be made applicable prospectively from 1.4.2009 i.e, accounting year 2009-10, uniformly on “ non Sikkimese” individuals and “other persons” as defined in Income tax Act 1961

May we stress here that our Hon’ble Chief Minister Dr Pawan Chamling has been repeatedly and time and again been assuring that the old settlers residing in Sikkim before the merger date i.e.,26th April 1975 have been inadvertently left out and they too would now be given the same benefits under Ladakh Model, in consultation with Government of India. And in this respect may it please be held on record, that these old settlers are in fact “LEFT OUT SIKKIMESE” and their reference as “NON-SIKKIMESE INDIVIDUALS” be please discontinued hereinafter, as they have an inseparable bond and sense of belonging with the soil of Sikkim, with highest regard for its Monarchs who always held them in high esteem.

And as such, the matter of implementation be deferred till the matter is settled.

With warm regards,

Yours faithfully,



President,
Sikkim Chamber of Commerce

Enclosures:
1. Instruction No 8/2008 dt 29.7.2008 issued by CBDT

2 Circular No 2/Fin/Adm dt 16.June 2008 issued by Government of Sikkim

3. Extract of correspondence of Addl Chief Secretary, Government of Sikkim dated 16.4.2007 ( Page No 293 of White Paper on the Direct tax laws in Sikkim Volume III)

4. Circular No 67 dt 23.9.71 issued by CBDT on exemption of Income tax to other residents of Ladhakh vide clause 26A of Section 10 of Income tax Act 1961

5. Copy of Sikkim Reporter dt June 23, 2008.. item ‘ Kranti is reformative…” He assured… Ladhakh Model…”

6. Copy of Sikkim Express newspaper dt 30 July 2008..item ‘CM assured the business community…follow the Ladhak Model to exempt Central Direct taxes for all Old business Communities and employees residing in Sikkim for decades..’

SIKKIM BHUTAN ROUTE STUDY TRIP

Sikkim-Bhutan route study trip in Sept
90 km route to start from Rongli, route through Bhutan and end at Chalsa in WB


GANGTOK, August 28: Officials from Centre and Sikkim governments are slated to undertake a recee of a potential alternative highway for the State through its Himalayan neighbour of Bhutan this September.

Chief Minister Pawan Chamling had earlier made a proposal for the trans-nation alternative highway to Union Ministry of Transport to ease out the landlocked State from its sole dependability on the its lifeline NH 31 A.

The proposal was an alternative highway either through Nepal or Bhutan for Sikkim bypassing the politically and naturally troublesome areas of Darjeeling hills.

Out of this, the Bhutan alignment was found feasible by the Union Ministry through Eastern Sikkim.

The frequent blockades of NH 31 A had prompted Sikkim to propose to the Centre for an alternative highway route from Bhutan.

NH 31 A, a tenuous 5-meter wide highway is the only connectivity link of Sikkim with the rest of the country. The highway often remains closed to traffic either due to bandhs called by protestors of various groups or landslides. The most recent instance was the blockade imposed by the Gorkha Janmukti Morcha (GJM) in July.

With no railhead or airport, the state’s infrastructure is heavily hemmed in by the 41-km NH 31A from Siliguri to Gangtok. Sikkim shares a sensitive international border with China, making connectivity a critical concern.

Now, the Union Ministry has outlined the preliminary plans and a tour of the potential route for Sikkim via Bhutan is set on the first week of Bhutan.

According to reports, the State government has confirmed that various alternative routes were being studied and the West Bengal Government’s concurrence was also being sought to ensure that the state’s essential supplies are not affected by protests or landslides.

The proposal tentatively places the length of the new route from Gangtok to Chalsa in West Bengal, via Bhutan, is expected to be around 90 km.
Of this around 40 km will fall in Bhutan.

State Roads Secretary Govind Prasad Sharma who is presently in New Delhi has been quoted by national media as: “The idea is to create an alternative route starting from Sikkim’s eastern part near Rongli into Bhutan’s Pangola range-that separates Sikkim from Bhutan-and on to Phuentsholing before it re-enters Indian territory at Chalsa in the Dooars region. An aerial survey will be conducted for the route from the first week of September. Soon after, the route feasibility will be studied on foot which is likely to take a month”.

Mr. Sharma said the proposal was put before Union Transport Secretary Brahm Dutt when he visited the state last month.

“The Secretary appreciated our view that the only solution to Sikkim’s accessibility problems lies in an alternative route. He suggested that we go ahead with a feasibility after which the ministry would approach the Ministry of External Affairs (MEA) to further take up the issue with Bhutan,” added Sharma.

The state had been toying with Nepal and Bhutan as options for the alternative route, before finally deciding on Bhutan. The Nepal route, say officials, would be too long and complicated as western Sikkim would then have to be connected to east Nepal. Moreover, the security situation in Nepal was not found ideal for such a move.

While the Centre had recently given its go-ahead to an 80-km alternative highway parallel to NH 31A, connecting Sevoke to Ranipool along the other side of the Teesta river, the recent closure of the highway due to political disturbances in Darjeeling made the Sikkim Government and the Centre realise that this new highway alone would not help as NH31-A was held hostage in Darjeeling itself. Marathon meetings followed, with proposals ranging from prosecution of protestors to alternative routes.

According to reports, the Transport Ministry and the Home Ministry confirmed that there was a move for an alternative route to Sikkim.

“A proposal for routing this access through Bhutan or Nepal and into Bangladesh was considered at a meeting. While no final decision was taken at our end, it is understood that Sikkim does need an alternative to NH 31A,” said R R Jha, MHA’s Director Border Management to national media.

( sOURCE: sIKKIM eXPRESS)

UNION CABINET APPROVES COMPANIES BILL 2008

The Union Cabinet today gave its approval for introduction of the Companies Bill, 2008 in the Parliament to replace the Companies Act, 1956, the existing statute for regulation of companies in the country and considered to be in need of comprehensive revision in view of the changing economic and commercial environment nationally as well as internationally.


Sub: The Companies Bill, 2008

The Ministry of Corporate Affairs took up a comprehensive revision of the Companies Act, 1956 (the Act) in 2004 keeping in view that not only had the number of companies in India expanded from about 30,000 in 1956 to nearly 7 lakhs, Indian companies were also mobilizing resources at a scale unimaginable even a decade ago, continuously entering into and bringing new activities into the fold of the Indian economy. In doing so, they were emerging internationally as efficient providers of a wide range of goods and services while increasing employment opportunities at home. At the same time, the increasing number of options and avenues for international business, trade and capital flows had imposed a requirement not only for harnessing entrepreneurial and economic resources efficiently but also to be competitive in attracting investment for growth. These developments necessitated modernization of the regulatory structure for the corporate sector in a comprehensive manner.

2. Earlier, a Bill called Companies (Amendment) Bill, 2003 had been introduced by M/o Corporate Affairs (MCA) (then Department of Company Affairs) in the Rajya Sabha on 7.5.2003. Later on, a large number of changes were found to be necessary in the Bill. A decision was, therefore, taken to carry out a comprehensive review of the Companies Act, 1956 and to introduce a new Companies Bill for the consideration of the Parliament.

3. The review and redrafting of the Companies Act, 1956 was taken up by the Ministry of Corporate Affairs on the basis of a detailed consultative process. A `Concept Paper on new Company Law’ was placed on the website of the Ministry on 4th August, 2004. The inputs received were put to a detailed examination in the Ministry. The Government also constituted an Expert Committee on Company Law under the Chairmanship of Dr. J.J. Irani on 2nd December 2004 to advise on new Companies Bill. The Committee submitted its report to the Government on 31st May 2005. Detailed consultations were also taken up with various Ministries, Departments and Government Regulators. The Bill was thereafter drafted in consultation with the Legislative Department of the Central Government.

4. The Companies Bill, 2008 seeks to enable the corporate sector in India to operate in a regulatory environment of best international practices that fosters entrepreneurship, investment and growth and provides for :-

(i) The basic principles for all aspects of internal governance of corporate entities and a framework for their regulation, irrespective of their area of operation, from incorporation to liquidation and winding up, in a single, comprehensive, legal framework administered by the Central Government. In doing so, the Bill also harmonizes the Company law framework with the imperative of specialized sectoral regulation

(ii) Articulation of shareholders democracy with protection of the rights of minority stakeholders, responsible self-regulation with disclosures and accountability, substitution of government control over internal corporate processes and decisions by shareholder control. It also provides for shares with differential voting rights to be done away with and valuation of non-cash considerations for allotment of shares through independent valuers.

(iii) Easy transition of companies operating under the Companies Act, 1956, to the new framework as also from one type of company to another.

(iv) A new entity in the form of One-Person Company (OPC) while empowering Government to provide a simpler compliance regime for small companies. Retains the concept of Producer Companies, while providing a more stringent regime for not-for–profit companies to check misuse. No restriction proposed on the number of subsidiary companies that a company may have, subject to disclosure in respect of their relationship and transactions/dealings between them.

(iv) Application of the successful e-Governance initiative of the Ministry of Corporate Affairs (MCA-21) to all the processes involved in meeting compliance obligations. Company processes, also to be enabled to be carried out through electronic mode. The proposed e-Governance regime is intended to provide for ease of operation for filing and access to corporate data over the internet to all stakeholders, on round the clock basis.

(v) Speedy incorporation process, with detailed declarations/ disclosures about the promoters, directors etc. at the time of incorporation itself. Every company director would be required to acquire a unique Directors identification number.

(vi) Facilitates joint ventures and relaxes restrictions limiting the number of partners in entities such as partnership firms, banking companies etc. to a maximum 100 with no ceiling as to professions regulated by Special Acts.

(vii) Duties and liabilities of the directors and for every company to have at least one director resident in India. The Bill also provides for independent directors to be appointed on the Boards of such companies as may be prescribed, along with attributes determining independence. The requirement to appoint independent directors, where applicable, is a minimum of 33% of the total number of directors.

(ix) Statutory recognition to audit, remuneration and stakeholders grievances committees of the Board and recognizes the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the Company Secretary as Key Managerial Personnel (KMP).

(x) Companies not to be allowed to raise deposits from the public except on the basis of permission available to them through other Special Acts. The Bill recognizes insider trading by company directors/KMPs as an offence with criminal liability.

(xi) Recognition of both accounting and auditing standards. The role, rights and duties of the auditors defined as to maintain integrity and independence of the audit process. Consolidation of financial statements of subsidiaries with those of holding companies is proposed to be made mandatory.

(xii) A single forum for approval of mergers and acquisitions, along with concept of deemed approval in certain situations.

(xiii) A separate framework for enabling fair valuations in companies for various purposes. Appointment of valuers is proposed to be made by audit committees.

(xiii) Claim of an investor over a dividend or a security not claimed for more than a period of seven years not being extinguished, and Investor Education and Protection Fund (IEPF) to be administered by a statutory Authority.

(xv) Shareholders Associations/Group of Shareholders to be enabled to take legal action in case of any fraudulent action on the part of company and to take part in investor protection activities and ‘Class Action Suits’. (xvi) A revised framework for regulation of insolvency, including rehabilitation, winding up and liquidation of companies with the process to be completed in a time bound manner. Incorporates international best practices based on the models suggested by the United Nations Commission on International Trade Law (UNCITRAL).

(xvii) Consolidation of fora for dealing with rehabilitation of companies, their liquidation and winding up in the single forum of National Company Law Tribunal with appeal to National Company Law Appellate Tribunal. The nature of the Rehabilitation and Revival Fund proposed in the Companies (Second Amendment) Act, 2002 to be replaced by Insolvency Fund with voluntary contributions linked to entitlements to draw money in a situation of insolvency.

(xviii) A more effective regime for inspections and investigations of companies while laying down the maximum as well as minimum quantum of penalty for each offence with suitable deterrence for repeat offences. Company is identified as a separate entity for imposition of monetary penalties from the officers in default. In case of fraudulent activities/actions, provisions for recovery and disgorgement have been included.

(xix) Levy of additional fee in a non-discretionary manner for procedural offences, such as late filing of statutory documents, to be enabled through rules. Defaults of procedural nature to be penalized by levy of monetary penalties by the Registrars of Companies. The appeals against such orders of Registrars of Companies to lie with suitably designated higher authorities.

(xx) Special Courts to deal with offences under the Bill. Company matters such as mergers and amalgamations, reduction of capital, insolvency including rehabilitation, liquidations and winding up are proposed to be addressed by the National Company Law Tribunal/ National Company Law Appellate Tribunal.

* * * * * * * *

( SOURCE: PIB)

THINK SHOP ON NEXT GRN MCA 21

Secretary, Information Technology, Inaugurates 'Thinkshop on Next Gen MCA21'

THIS FUTURISTIC PROJECT BEING DESIGNED TO MEET EMERGING BUSINESS NEEDS
--------------------------------------------------------------------------------

11:24 IST
Shri Jainder Singh, Union IT Secretary, inaugurated a half-day ‘Thinkshop on next Gen MCA21’ here today at India Habitat Centre. The Thinkshop was organized by the Ministry of Corporate Affairs with a view to further evolve its flagship e-Governance project, theMCA21 into Next Gen MCA21 so that it is able to meet the needs of the future. Ministry of Corporate Affairs' MCA21 was the first project launched under National e-Governance Plan (NeGP) and has proved to be a major step forward and catalyst for promoting citizen centric service delivery mechanism and has created easily accessible interfaces, devoid of harassment and corruption, minimizing the waste of time and inconvenience of the public. As a result of MCA21, the procedures like approval of name, registration of a company, change of name of the company, issue of certified documents, annual filings, inspection of public documents which earlier used to take several days are being delivered quickly. Popularity of the project can be judged from the fact that the MCA portal receives 1.7 million hits a day. The project has ushered a new era in corporate governance interaction.

In his inaugural speech the Secretary IT said that MCA21 is an excellent example of the kind of initiatives that are needed to meet with the challenges of our growing economy. Our rapid pace of growth is putting immense work pressure on current institutional structures, current ways of functioning, and current ways of managing information and current regulatory practices, he said. Mr. Jainder Singh said that this coupled with heightened expectations of the stakeholders on account of success of MCA21 has created an urgent need to evolve further to meet the pressure and expectations. He hoped the Next Gen MCA21 will be able to achieve this goal.

Secretary IT referred to the “Ease of Doing Business” rankings 2008, released by the World Bank in which India has been ranked 120th out of 178 countries. He said this is an indication of the hurdles the entrepreneurs are facing in setting up and doing business in India. Addressing this problem requires multi-pronged strategy, which should include improving the quality of regulation, improving policy formulation processes and creating a healthy business environment by streamlining the interaction and improving interface between government and business, cutting out the redundancies in procedures and emphasizing immediate and efficient delivery of services. He hoped that Next Gen MCA21 will help India climb high on the future “Ease of Doing Business” rankings.

The Thinkshop was originally to be inaugurated by Shri K. M. Chandrashekar, Union Cabinet Secretary, but he couldn't attend the function due to his preoccupation with the Cabinet meeting held in the morning today.

Secretary, Ministry of Corporate Affairs, Shri Anurag Goel highlighted the thought process that has gone into conceptualizing the Next Gen MCA21 and said it is being designed to meet the needs of the future. He said his Ministry considers partnership between the Government and corporates most essential for economic growth and good corporate governance. He invited top level corporates, professionals, IT experts etc. to partner with his Ministry in the series of e-Governance initiatives that are being planned. Shri Goel said that initiative for embarking upon Next Gen MCA is not for an incremental improvement in MCA21, but under it the Ministry would like to achieve a Quantum jump by bringing in concepts and elements which do not exist in MCA21 today. The architecture of Next Generation MCA21 should make it possible to take up effective regulation and enforcement through at all stages, including inspections, investigations and prosecutions. Secretary said the Next Gen MCA21 should be able to provide a single regulatory portal for business. It should be linked internally to various regulatory Ministries, individual regulators etc., so that a single B2G&R (Business to Government & Regulation) window is available to the business, capable of dealing with tomorrow’ business requirements, accounting systems, reporting systems etc, like multiple balance sheet, CSR reports etc.

Shri Kiran Karnik, former President NASSCOM in his Address said that MCA21 has brought in lot of transparency in the sphere of corporate affairs and has helped all the stakeholders; not only private sector and the government but also the public at large. He said that Next Gen efforts should concentrate on something totally new, which is not just mere extension of the present programme but leads to a total change in the very thought process. Shri Karnik said this will also help in compliance of rules and regulations too. He said MCA21 project of the Ministry of Corporate Affairs is an example of how public- private partnership should be implemented.

Sh Karnik also chaired the deliberation session. The Thinkshop was attended by leading corporate personalities and experts in e-Governance.

( Source:PIB)

CUMPULSORY VERIFICATION OF TENENTS -PUBLIC VIEW ASKED FOR

Gangtok,27th August 2008

In order to ensure continued peace and security in the State, the State Government has proposed to enact a law for the compulsory verification of all tenants and domestic and professional helps except in respect of those falling under the exempted category.

2. Draft of The Sikkim Tenants and Domestic and Professional Helps (Compulsory Verification) Act, 2008 has been placed on the State Government website www.sikkim.gov.in for general information.

3. The State Government has deemed it appropriate to have the views of the
members of the general public before the proposed law is enacted.

4. All those whishing to make any comments or suggestions in respect of the proposed legislation are requested to address the same to the “Home Secretary, Government of Sikkim, Tashiling Secretariat, Gangtok” or email at “home-sik@nic.in” within one month form the date of publication of this notice.

IPR RELEASE