§1Who it is for

  • Industries setting up in Frontier Economic Zones in Mangan, Soreng, Gyalshing and Namchi districts

Useful if

Units willing to locate outside Gangtok/East district.

Do not spend time on it if

—

§2Eligibility

  1. New industrial unit (manufacturing or specified service unit) meeting 'Green Industries' definition and not in Annexure-I negative list
  2. Not formed by splitting/reconstruction, transfer of used P&M, relocation or reopening of an existing unit
  3. At least 30% Sikkim people in managerial cadre and 90% in non-managerial cadre (employment certificate from competent authority)
  4. Private, joint, cooperative, partnership, proprietorship, SHG, trust, NGO; State Government units and CPSUs not eligible
  5. Unit must be functional at disbursement; cash payments not counted as investment
  6. Hotels/resorts 3-star+ and green power eligible; hotels must source 20% of furnishings from local artisans
  7. CSR activity commensurate with profits; all State dues paid
  8. Register under SIIP with C&I Department; commercial production within 18 months of registration
  9. Negative list: tobacco, pan masala, carry bags <20 micron, refinery products, plantation, refineries, power above 10 MW, coke, fly ash, cement, steel rolling mills, units without environment clearance/consent, low value addition (packing, labelling etc.), gold and gold dore

§3Benefits

  • Rent on lease of Government land free for first 5 years from commencement of production

§4Norms — pattern of assistance

  1. Zones to be identified by the State; boundaries not yet published

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Register under SIIP with Commerce & Industries Department; online application with DPR (portal to be developed)

  2. 2

    Committee grants registration/in-principle approval considering budget

  3. 3

    Claims up to ₹1 crore: Steering Committee (Secretary, C&I), FIFO; above ₹1 crore: Empowered Committee (Chief Secretary)

  4. 4

    Incentive paid by e-transfer through State Bank of Sikkim; APR for 5 years

§7Pros and cons

Merits

  • Free Government land rent for 5 years

Demerits

  • Zones not yet notified on the department site (gap)

→Related schemes

Need help with Sikkim Frontier Zones?

Eligibility check, DPR and application file — ask us on WhatsApp.

WhatsApp usServices

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. Sikkim Industrial and Investment Policy 2024 - Commerce & Industries Department (copy hosted on NEDFi Databank)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.