Gangtok, Aug. 6: Sikkim chief minister Pawan Chamling today made it clear that if investors were to take advantage of the concessions and exemptions available in the state, at least 70 per cent of the employees must be Sikkimese.Speaking at an investors’ meet organised by his government, Chamling did not mince words when he sent the message across to over 100 businessmen and bankers at Chintan Bhavan here.“I put this on record: I am not happy at all with companies that have not recruited local people,” he said, even naming a few pharmaceutical concerns.Since 2006, five leading companies have invested about Rs 500 crore and with the extension of the North East Industrial and Investment Promotion Policy for another 10 years, another Rs 10,000 crore are in the pipeline.
A total exemption on excise and income tax, subsidies in capital investment and interest and reimbursement of insurance premium are among the several benefits that investors get.In order to employ residents of Sikkim for semi-skilled and skilled jobs, the state government instituted a separate directorate of capacity training to create a pool of human resource.Justifying his stand, Chamling said: “It is your responsibility to see that there is no unrest over employment…(if it happens), it will not be our responsibility.”
A total exemption on excise and income tax, subsidies in capital investment and interest and reimbursement of insurance premium are among the several benefits that investors get.In order to employ residents of Sikkim for semi-skilled and skilled jobs, the state government instituted a separate directorate of capacity training to create a pool of human resource.Justifying his stand, Chamling said: “It is your responsibility to see that there is no unrest over employment…(if it happens), it will not be our responsibility.”“The State Government is fully assisting in setting up industries in the State by declaring areas in different places of the State as industrial zone areas. We are providing investors with all the facilities. We offer them peace and tranquillity, clean water, clean air, law and order, investor friendly government and a conducive environment to carry out business without any hindrance and obstruction. However, these industrial units have not been appointing locals which would have relieved the pressure on the State Government to tackle growing unemployment. I am very unhappy with this trend,” Mr. Chamling said.
Besides the Power developers, the State has considerable human presence in areas like Banking, pharmaceutical units, hotels, tours and travel operators, hospitality services, transportation, health and education. It is part of the State Government’s policy to ask all investors to provide jobs to the locals.
“Today we have to reassert the level of State Government’s cooperation to the investors and also to assess whether similar degree of cooperation from them,” Mr. Chamling said.
The Chief Minister rued over the fact that most of the Private Banks, Pharmaceutical companies, breweries and distilleries and the hospitality industry set up in the State have not fulfilled its commitments towards “safeguarding Sikkim’s interests.” “This is not acceptable to us,” he said.
“When licences are so easily issued by the State Government there should reciprocal gesture by investors for the benefit of the people of Sikkim,” the CM said. He said that since there is no dearth of training institutes in the State, the investors should select local candidates and adequately train them and recruit them,” he added.
In case of power developers, the State Government has made it clear in the MoU that maximum benefits should go to the locals.
The power developer as well as its contractors has to ensure that all the unskilled/skilled manpower other than executives as may be required for implementation of the power Projects is recruited through Employment Cell here at Gangtok. Whenever the Employment Cell fails to sponsor suitable candidates and confirms in writing for the posts so notified within four weeks of receipt of the request, then the Company may resort to other modes of recruitment on a temporary basis till such time the local manpower is available.
The company has to also ensure that import of labour from outside the State is made in a limited manner. Those that are brought in are to be medically examined and registered with the local authorities for a period not beyond 6 months after the commissioning date of the Project. The Company shall furnish list of names of non-Sikkimese persons engaged in the project, who will require restricted area permit from the Government of Sikkim to work in the Project specifying the nature of works. All the skilled and unskilled manpower other than executives in the projects are to be recruited through State Employment Cell.
Apart from this, the Power Developers should allot construction of roads within their project site to the locals, including construction of colony buildings, construction of water supply lines, and electrification works and all other works and business which the locals can easily undertake. The Chief Minister was also of the view that the companies should purchase local materials, vegetables and meat, thus giving a boost to the local market.
Mr. Chamling also announced that all Departments will undertake a verification exercise on all industrial units in the State on the number of skilled and non-skilled labourers employed by them on a monthly.
“Our Government is very pro-active in providing all-out assistance in promotion and development of industries in the State and we have set up an Investment Board under the Chairmanship of the Chief Minister for providing speedy clearance under a Single Window Scheme. I would take this opportunity to invite all investors to invest in multiple areas including health sector, IT Software industries, Testing Labs and Ancillary Units, cinema, video recording and setting up of Hotels above 5-star category,” Mr. Chamling said.
Besides the Power developers, the State has considerable human presence in areas like Banking, pharmaceutical units, hotels, tours and travel operators, hospitality services, transportation, health and education. It is part of the State Government’s policy to ask all investors to provide jobs to the locals.
“Today we have to reassert the level of State Government’s cooperation to the investors and also to assess whether similar degree of cooperation from them,” Mr. Chamling said.
The Chief Minister rued over the fact that most of the Private Banks, Pharmaceutical companies, breweries and distilleries and the hospitality industry set up in the State have not fulfilled its commitments towards “safeguarding Sikkim’s interests.” “This is not acceptable to us,” he said.
“When licences are so easily issued by the State Government there should reciprocal gesture by investors for the benefit of the people of Sikkim,” the CM said. He said that since there is no dearth of training institutes in the State, the investors should select local candidates and adequately train them and recruit them,” he added.
In case of power developers, the State Government has made it clear in the MoU that maximum benefits should go to the locals.
The power developer as well as its contractors has to ensure that all the unskilled/skilled manpower other than executives as may be required for implementation of the power Projects is recruited through Employment Cell here at Gangtok. Whenever the Employment Cell fails to sponsor suitable candidates and confirms in writing for the posts so notified within four weeks of receipt of the request, then the Company may resort to other modes of recruitment on a temporary basis till such time the local manpower is available.
The company has to also ensure that import of labour from outside the State is made in a limited manner. Those that are brought in are to be medically examined and registered with the local authorities for a period not beyond 6 months after the commissioning date of the Project. The Company shall furnish list of names of non-Sikkimese persons engaged in the project, who will require restricted area permit from the Government of Sikkim to work in the Project specifying the nature of works. All the skilled and unskilled manpower other than executives in the projects are to be recruited through State Employment Cell.
Apart from this, the Power Developers should allot construction of roads within their project site to the locals, including construction of colony buildings, construction of water supply lines, and electrification works and all other works and business which the locals can easily undertake. The Chief Minister was also of the view that the companies should purchase local materials, vegetables and meat, thus giving a boost to the local market.
Mr. Chamling also announced that all Departments will undertake a verification exercise on all industrial units in the State on the number of skilled and non-skilled labourers employed by them on a monthly.
“Our Government is very pro-active in providing all-out assistance in promotion and development of industries in the State and we have set up an Investment Board under the Chairmanship of the Chief Minister for providing speedy clearance under a Single Window Scheme. I would take this opportunity to invite all investors to invest in multiple areas including health sector, IT Software industries, Testing Labs and Ancillary Units, cinema, video recording and setting up of Hotels above 5-star category,” Mr. Chamling said.
Reactions to Chamling’s speech were mixed. “The Confederation of Industry of Sikkim will join hands with the government to develop skilled manpower. Once they are trained, they will be absorbed,” said R.K. Mittal, spokesman for the Confederation of Indian Industry affiliate.An official of Cipla, a pharmaceutical company, said they had already recruited locals at their unit. “But there is a lack of technically qualified people.” A significant section of investors, who preferred anonymity, said there was no new incentive or even encouragement offered by the chief minister. “On the other hand, there were several warnings that may dissuade industrialists,” one of them said
