State Profile 2014-15 Final
State Profile 2014-15 Final
Ministry of MSME
2014-15
PREPARED BY
MSME-Development Institute
(Ministry of MSME, Govt. of India,)
P.O. Tadong , Gangtok-737102(Sikkim)
Phone-03592231880, Fax:-03592231262
e-mail: dcdi-gangtok@dcmsme.gov.in
Web-www.sikkim.nic.in/msme-di
CONTENTS
1 Introduction 1
4 Figures at Glance 6
7 Tourism 19
The State Industrial Profile of Sikkim for the year 2014-15 is being presented
covering a wide spectrum of human activities. The general objective of preparing the
Industrial Profile of Sikkim is to portray the present state of industrial development against
the backdrop of various socio-economic indicators prevailing in the State. Sikkim is one of
the least industrially developed states of India. However, a substantial number of large units
are being set up in the manufacturing and service sectors since 2006 onwards. Few units that
are engaged in manufacturing sector are mainly dealing with pharmaceuticals, chemicals,
liquors, foam mattresses, food products, iron rods, etc. Some of these units are small and
medium enterprises. Majority of small and medium enterprises are engaged mainly in
service sector activities like Hotels, Resorts, Restaurants, and Travel Agencies etc. because of
natural and scenic beauty of state and development of tourism infrastructure in the State.
The present industrial scenario is quite encouraging though a lot needs to be done to exploit
the full potential of the State.
While compiling the Profile, data has been collected from different secondary
sources. Various State & Central Government departments have been approached to provide
the requisite information. As far as possible due care has been given to incorporate the latest
available facts & figures about the state. T he data provided in Annual Reports of various
State government Departments/Organizations and, “Sikkim- A Statistical Profile” published
by the DESME, Govt.of Sikkim has been mostly relied upon. Census data of 2011 has been
used to get the demographic particulars of the State. Suggestions for further improvement
are most welcome.
GENERAL CHARACTERISTICS OF THE STATE
Location:
Sikkim is one of the far flung States of India. The State is located of the foothills of
Eastern Himalayas between latitude of 27degree 49” and 28 degree 10” north and the
longitudes of 88 degree 28” and 88 degree 55” East. Sikkim is the 22nd state of India came
into existence with effect from 16th May, 1975. Sikkim is a very small hilly state in
the Eastern Himalayas, extending approximately 115 Kms from north to south and 65 Kms
from east to west, surrounded by vast stretches of Tibetan Plateau in the North, Chumbi
Valley of Tibet and the kingdom of Bhutan in the east, Darjeeling district of West Bengal in
the south and the kingdom in Nepal in the west. The state being a part of inner ranges of the
mountains
of Himalayas has no open valley and no plains but carried elevations ranging from 300 to
8583 mtrs above mean sea level consisting of lower hill, middle and higher hills, alpine zones
and snow bound land, the highest elevation 8583 mtrs, being the top of the Mt.
Kangchendzonga itself. Sikkim has been divided into four districts and each district has
further been bifurcated into two sub-divisions for administrative purpose except the East
district which has four sub-divisions. Sikkim state being a part of inner mountain ranges of
Himalayas, is hilly having varied elevation ranging from 300 to 8540 meters. But the
habitable areas are only up to the altitude of 2100 mtrs. Constituting only about 20% of the
total area of the state. The highest portion of Sikkim lies in its north west direction. A
large number of mountains having altitudes of about seven thousand meters stands here with -
Kanchenjunga (8598 m.), The third highest peak in the world. The high serrated, snow
capped spurs and peaks of Kanchenjunga look attractive consisting of Kumbha Karna (7711
m.), Pandim (6706 m.), Narsingh (5825 m.), Kabru Dome (6545 m.), etc. A number of
glaciers descends from eastern slopes of Kanchenjunga into Sikkim where snow clad line is
found above 5300 mtrs. The biggest of them is Zemu, from whose snout above Lachen
monastery rises the river Teesta. Teesta is the main river and its main tributaries are Zemu,
Lachung, Rangyong, Dikchu, Rongli, Rangpo and Rangit which form the main channel of
drainage from the north to the south. It boasts of the great mount Kanchendzonga as its
crown. Ethnically Sikkim has mainly three groups of people viz. Nepalis, Bhutias, Lepchas.
The local language is Nepali. English is the official language. This jewel-like mountain state
of ethereal beauty with an area of 7096 sq. km, nestles in the heart of Himalayas. Cradled in
the manifold splendours of nature deep within the snow clad Himalayas is Sikkim's capital
Gangtok, wrapped in mists and clouds, a garden state with an incredible variety of
rhododendrons & a host of other flowers.
Out of the total population of 607,688 there are 321,661 male and 286,027 females.
Among all the four districts North District is the largest in area but least populated and
constitutes 7.13% followed by West District with 22.43 %, South District 24.15% and the
East District has the highest population constituting 46.29% of the total population of the
state. Similarly d i s t r i c t - w i s e decadal variation rate o f p o p u l a t i o n (2001-2011) is
5.67% for North , 14.80% for East, 11.57% for South and 10.59%, West whereas for State it
is 12.36%. The density of population is 10 in North, 295 in East, 196 in South and 117 in
West as compared with State density of 86. The district-wise sex ratio is (females per
thousand male) is 769 in North, 872 in East, 914 in South and 941 in West as compared to
889 for State. The literacy of State stands at 82.20% in 2011 as compared to 74.04% of the
national level.
THE ECONOMIC CLASSIFICATION OF POPULATION OF SIKKIM (1971-2011)
Total workers are again divided under main workers, marginal workers. The main
workers are sub-divided into cultivators, Agricultural laborers, workers in household
industry and other workers which can be depicted in the table below:
GSDP: Gross State Domestic Product, NSDP: Net State Domestic Product,PCI: Per Capita Income,
* Provisional Estimate ** Quick Estimate*** Advance Estimates
Total Area Statement: The total geographical area of the state is 7096 sq. Kms. The
state is divided into four districts for which detail is given below:
Towns No 1 2 3 2 08
Other smaller tributaries of the Teesta River are Zemuchu, Lenakchu, Lachungchu,
Talungchu.
2. Forest :
Sikkim is rich in forest resources. The total area under the Administrative Control of
Forest, Environment & Wild life Department is 5841.00 Square Kilometer which accounts
for 82.31 % of the total geographical area of the State . District-wise classification of Forest
Area along with area of coverage is depicted in the table below
Source –Forest, Environment & Wildlife Management Dept. Annual Administrative Report
2011-12.
Revenue realized by Forest, Environment & Wildlife Management Department, Govt. of
Sikkim from the year 2001-02 to 2011-12 is given below-
356 5.12
Scrub
Non-Forest
3381 47.54
Total Geographical Area
7096 100
(i) STATE GREEN MISSION- Total Saplings Planted( in lakhs) under State Green
Mission
(ii) Area Covered under P.Ms Twenty Point Programme during 2011-12-
(iii) Number of saplings planted and area covered under the programme Ten Minutes to
Earth from the year 2009 to 2012 is depicted below-
The State has a National Park, Sanctuary and Forest Park is depicted in the table below.
Besides these, the State has discovered 144 species / sub-species of Mammals more than 552
species of Birds, Butterflies, Reptiles frogs, Medicinal / Restricted / Protected trees and plants
as per table depicted below.
FAUN FLOR
Sl Particular No. A Name of Principal Sl. ParticularsA No. of
no s of Endangered Species No. of Species
of Fauna Species/Su Flor /Found in
b- species a the
1 Mammals 144 in
found Bharal, Clouded 1 Orchids 550
Stat
Leopard, e
the State Fishing Cat, Golden 2 Fhododendro 36
Cat, Himalayan Thar, 3 n Flowerin Over
Leopard Cat, Red g 5000
4 Ferns &
Plant 362
specie
Panda, Marbled Cat, 5 Allies
Conifers 1s
Musk Deer, Nayan of s
6 Medicin 6424
Great Tibetan Sheep, al
Pangolin, Serow, Snow Plants
Leopard, Spotted
2 Birds 552 Lingsang,
Black Tibetan 7 Oaks 11
Antelope, Tibetan Fox,
necked
Tibetan Gazzelle,
Crane(Migratory),
Tibetan Wild
Blood Ass,
Pheasant,
Tiger, Tibetan
Peafowl, Wolf
Tibetan Snow
3 Butterflies 650 Cock, -- Tragopan 8 Bamboos 28
Pheasant, Snow
4 Reptiles 33 Partridge, -- Siberian 9 Tree Ferns 9
5 16 --
Crane (Migratory)
6 Amphibians
Fishes 48
Flora and Fauna Found in Temperate Zone
Sl. No. Faun Sl. No. Flor
1 a
Common Langur 1 Oak a
2 Leopard Cats 2 Cherry
3 Red Panda 3 Alurel
4 Musk Deer 4 Chestnut
5 Himalayan Black Bear 5 Maple
6 Flying Squirrel 6 Birch
7 *Snow Leopard 7 *Rhododendron
8 *Wild Ass
Found in the Alpine Region
The state of Sikkim is host to possible resources of ores and minerals. Despite efforts
of Department of Mines and Geology, Government of Sikkim and Geological Survey of
India, large areas of the state still remains unexplored. From the nineteen sixties into nineteen
eighties, Geological Survey of India has conducted investigations for locating occurrences of
base metal in Sikkim and Darjeeling Himalayas. Today, in the Himalayas of India, the only
working mine producing copper ores is located at Rangpo, Sikkim. A total of 24 base metal
occurrences are located in Sikkim.
Distribution pattern of the known occurrences shows that these are concentrated in
three clusters, namely (i) Eastern Sector, (ii) Central Sector, (iii) Western Sector. The most
important occurrences in the Eastern Sector are Rangpo, Pachekhani and Dikchu, located to
the east of the river Teesta. These deposits are mainly strata bound, hosted by the low grade
rocks of Gorubathan Formation. In the Central Sector lying between the Teesta river in the
East and Little Rangit river in the West a number of occurrences are located to the East of
Namchi. In the Western Sector a large number of occurrences are located in the Nayabazar
area, many of which were explored in the early part of the century by Burn & Co. and in
early 60‟s by GSI. Most of these occurrences are Quartz vein hosted now not of any
economic significance.
Other Minerals:
Dolomite :
Both high grade massive and low grade flaggy type of dolomites have been located in
Rishi area west of the Jorethang Legship State highway. On the either banks of Rishi Khola.
Four blacks of dolomite has been located and in one block a reserve of more than 1.10m
down to a depth of 30 m has been estimated by GSI.
Limestone:
Grey limestone interbanded with green phyllitic has been located in Rishi Khola south
of Namgaon. At places the band is about 38m thick.
Graphite:
Graphite, lumpy and flaky type with graphite schist, marble and limonitised pegmatite
of Chungthang Formation of Darjeeling group has been located at Chitre and Dareli of West
District.
Marble:
Greyish white to creamy white coarse-grained marble bands is reported from 2 Km.
Chungthang Formation at Chungthang, Lachung and Tsango.
CoaL
Regional Geological exploration by GSI in and around Namchi area of South Districthas
established a reserve of 1.4 lakh tones of bituminous to semi-anthracite coal, analyzing 40 to
60% fixed carbon, 4% to 22% ash, 8 to 13 % Volatile matter and 3% moisture. Thin coal
seams (1m to 5m) are found to occur on the road linking Legship with Nayabazar and to
the south of Put Khola.
However owing to huge amount of loss incurred, commercial production and commercial
exploration has been stopped and the state Mining Corporation ,Rangpo has been wind up.
. TOURISM:
Lately Sikkim has developed into a major tourist destination in the country. Because of
prevalence of peace and tranquility in the state in the one hand and the presence of naturally
beautiful peaks, valleys , lakes , gardens, flora and fauna on the other , Sikkim has emerged as
one of most shot after tourist destinations in the country. Changu lake, Baba Mandir , Nathula
Pass, Gangtok Town and Gangtok Ropeway, Rumtek Monastry, Yumthang Valley,
Gurudongmar Lake , Pelling Pemayangtse monastery etc. are tha major places of tourist interest
in the state. Beside these, creation of tourist destinations likes Guru Padmasambhava Statue and
Char Dham near Namchi, South Sikkim and Tathagat sal (Buddha’s Statue at Ravangla South
Sikkim has also immensely contributed in increasing the tourist inflow in Sikkim. Therefore
tourism is one of the major contributors to the economy of Sikkim and this may be one of the
reasons for most of the registered units belonging to service sector like hotels, restaurants, travel
agencies etc. The year wise figures of arrivals of domestic tourist (including unrecorded 25 %)
and foreign tourist since 2005 is depicted in the following table-
No. of Hotels No. of Total No. of No. of Travel No. of Travel Total No. of
registered Hotels Hotels Agencies agencies Travel
during 2013- registered registered registered registered Agencies
14 during 2013- during 2014- during 2013- during 2014- registered
14 15 14 15 during 2014-
(Cumulative) 15
(Cumulative
05 10* 232* 84 65* 582*
The principal crops of the state are maize, paddy, wheat, millet, buckwheat, pulses and
oilseeds .Large cardamom, ginger and orange are the most important commercial potential
crops of Sikkim. Potato, radish, brinjal, tomato, beans, ,peas, mustard, pea, , cucumber,
gourds , cauliflower, cabbage etc.are the important vegetables crops grown in the State.
Wide range of fruit crops are grown successfully in the State. The important fruit
grown in the state are mandarin orange, banana, guava, papaya, mango peach, plum pears,
apple, avocado etc. The state is also rich in genetic diversity of minor or wild fruits.
Presently mandarin orange is an important commercial fruit crop of Sikkim. Sikkim
produces 80% of India‟s large cardamom which enjoys a high value export market in
Pakistan, Singapore and Middle-East. The Sikkimese ginger is also of a good quality and has
export prospects. Fruits can be processed for value addition. Exotic flowers can be cultured
for export. Honey and tea are other agro-based products that have high potential.
Sikkim also has a large variety of exotic and beautiful flowers, which can earn
substantial price in the national and international market. In particular, 550 species of orchids
are found which are most beautiful in the world. The climate in some parts of the state is
ideal for cultivation of mushrooms and mulberry trees for rearing of silk worm and hence the
establishment of a sericulture industry.
In spite of all this, the absence of profitable marketing network and the lack of
appropriate processing facilities for manufacturing quality finished products has resulted in
most of the produce being sold at uncompetitive prices to other states as raw materials and
their true potential has not been exploited. Therefore attention needs to be given for the
development of agro-based, food processing and forest based units. The land holding,
estimates of production, list of altitude-wise distribution of cultivated fruit crop, Important
Fruits, their Area of Cultivation & varieties Grown in Sikkim is depicted in the table below.
Land Holding
Decimal Mean Area, Production and Productivity under different common crops
cultivation in Sikkim ( as on 31st March 2015)
(Area in 000” hectare, Production in 000” tones, Productivity in Kg/Hectare)
CROPS PARTICULARS 2000-01 2014-15 Gain/Loss in 15
years (%)
Paddy AREA 15.22 11.04 -27.46
PRODUCTION 21.36 20.07 -6.04
PRODUCTIVITY 1403.43 1817.93 29.53
Wheat AREA 7.22 0.39 -94.60
PRODUCTION 10.10 0.42 -95.84
PRODUCTIVITY 1400.35 1066.84 -23.82
Maize AREA 39.90 39.88 -0.05
PRODUCTION 59.61 68.89 15.57
PRODUCTIVITY 1493.92 1727.51 15.64
Other Cereals AREA 7.69 7.14 -7.15
(barley, Millet,
PRODUCTION 6.97 7.02 0.72
Buchwheat)
PRODUCTIVITY 919.27 983.20 6.95
Total Cereals AREA 70.03 58.44 -16.55
PRODUCTION 98.05 96.40 -1.68
PRODUCTIVITY 1400.06 1649.50 17.82
Pulses AREA 6.03 6.26 3.81
PRODUCTION 5.17 5.81 12.38
PRODUCTIVITY 856.57 927.80 8.32
Oil Seeds AREA 9.99 7.92 -20.72
PRODUCTION 3.38 7.07 109.17
PRODUCTIVITY 739.00 892.17 20.73
ORGANIC CERTIFICATION
1 Area for Organic Certification 58,000 ha
2 Agriculture Area Certified 8,128 ha
3 Cardamom Area Certified 3,100 ha
4 C2 Certification Completed 18,000 ha
5 C1 Certification Completed 18,000 ha (Rest area under process)
Altitude Crops
250-1000m msl Banana, Mango, Papaya, Guava, Litchi, Sapota, Jack Fruit,
Limes and
Lemons, Mosambi
1000-1500 msl Mandarin, Orange, Pomegranate, Avocado, Guava,
Banana, Low
Chilling Peach, Plum and Pear, Passion fruit and
1500-2000 msl Peach, Plum,etc.Pear, Low chilling apple, Kiwi fruit,
strawberries
Passion fruit,
Walnut etc.
2000-4000 msl Apple, Apricot, Plum, Peanut, Walnut, Almong etc.
The state agriculture is predominantly dependent upon rain fed cultivation and giving
more priority to mixed cropping. Now since 2003 onward Sikkim has been declared as the
state heading towards organic farming and it has been proposed to declare Sikkim as a organic
state by January 2016. The state is basically an agrarian where majority of the population
depended upon agriculture for their livelihood. Out of total area of 709600 ha about 1,10,000
is under operational holdings and the net cultivated area is estimated to be around 79,000
hectare (11.13 % )of the geographical area It has become a back bone of state economy
representing about a third of state‟s gross domestic product.
ANIMAL HUSBANDRY AND VETERINARY SERVICES
Crop and animal production systems occupy important positions in the food chain.
Animal Husbandry provides the only source of supplement income to the families. Through
this sector provides a secondary source of income to the local people get its role as a primary
source of income assuming importance the livelihood to the rural poor. There are good
prospects for setting up diary and animal husbandry units on a commercial basis. Milk
production offers opportunities for developing processed food products like cheese butter etc.
The population being predominantly non-vegetarian, meat processing and packaging units
offers promise in the state. It will be of interest to note that Angora Breeding, which was
tried in Sikkim on an experimental basis some years back has proved highly successful with
more entrepreneurs. Some even in the remote regions of North Sikkim getting drawn to the
trade.
Due to mountainous terrain only 11% of the total area of 7096 sq. km. is available for
livestock farming as 90% or 3.35 population are cattle, goat, pigs, sheep, poultry and yak in
small numbers and utilize the forest for fodder. The present rural livelihood system is well
balanced from ecological point of view however with the increase in population and the
limited availability of land (as 70% of the land holding in Sikkim are less than 2 hectares)
there is already great pressure. So to reduce the pressure on the cultivable land and to
improve the fodder and gazing conditions the following activities are being taken:
Also in order to increase fodder production and at the same time to ensure that deforestation
is prevented the Forest Deptt., Govt. of Sikkim has mooted a proposal for setting up of
committees at the Village, District and at the sate level consisting of representative of Forest,
Animal Husbandry & Agriculture Department besides farmers. The main function of these
committee would be to develop the wastelands for augmenting fodder production.
Farmers still follow old traditional practices. Scientific techniques have not been
introduced to improve productivity and to prevent the spread of diseases. The lack of trained
technical people in this sector continues to constrain the diffusion of the best practices.
Animal health services are still on the development phase. inadequate.. There are not
enough health care services centers and no disease investigation laboratories in the
district. Most polyclinic have inadequate facilities and there is shortage of technically trained
manpower to run the centers.
The district wise number of Dairy Plant and their capacities, Fodder availability and
its requirement, Total Numbers of Veterinary Institution – District Wise and Quinquennial
Livestock and Poultry Census in Sikkim State is depicted in the table
The district wise number of Dairy Plant and their capacities in the State
3. South 1, 5000 L. P. D.
The department of Health and Family Welfare is instrumental and responsible for
implementation of various national programmes in the areas of health and family welfare as
well as prevention and control of communicable diseases. All schemes related to health and
family welfare sector are continued to be implemented in the State through a network of 146
Primary Health Sub-Centers (PHSC), 24 Primary Health Centers (PHC), 2 Community
Health Centers (CHC), 4 District Hospitals and one 300 bedded State Referral Hospital
(STNM) at the State Capital, Gangtok. A 500 bedded Central Referral Hospital –cum –
Medical College set up in collaboration with the Manipal Pai Foundation Group under
private management has also been functioning in the State.
The Department has made rapid progress in expanding overall health infrastructure as
well as trained manpower in the State. The Department, headed by a Director General –
cum-Secretary to the Government is manned as on 31-08-2014, by 281 Doctors including
Specialists/ Chief consultants/ consultants in different medical science, 42 dentists, 780
Nursing personnel’s 519 paramedical ( Gr A,B & C) and other staff. Out of the 319 numbers
of doctors and dentists, 133 doctors/ specialist and 18 dentists have been posted in the
State Referral Hospital (STNM) Gangtok. The rest of doctors have been posted in PHCs,
CHCs District Hospitals and some of them have been made in charge of administration and
programme Officers of various National Programmes. The infrastructure of Health
Institutions is depicted in the table below
2 District Hospitals 1 1 1 1 4
Source: Annual Report 2013-14 of Health & Family Welfare Deptt. Govt. of Sikkim
The Department has made rapid progress in expanding overall infrastructures as
well as trained manpower in the state. The National Rural Health Mission (NRHM) has been
under vigorous implementation in the State since April 2005. The impact of the Mission is
being seen in terms of improved quality and coverage of health care which has resulted in a
rapid fall in Crude Death Rate (CDR) from 6.9 in 1995 to 5.2 in 2013. There is considerable
improvement in the Infant Mortality Rate as it stands at 22 per 1000 live births against all
India figure of 40 during 2013.
POWER INFRASTRUCTURE
The sate of Sikkim is blessed with tremendous hydroelectric power potential that has
been worked out at 8000 MW Peak and a firm base of 3000 MW. Approximately seventy
miles North East stretch of Sikkimese territory possesses a land gradient that lies roughly
between 500 feet to 28,000 feet above mean sea level. Due to this amazing terrain Sikkim
houses some of the most turbulent and swiftest rivulets in the world that is best suited for
harnessing hydel power potential.
Hydro Power Plants are designed based on the water discharge in a river. During
monsoon the discharge is very high and during the lean period the discharge is much less. At
the same time the discharge of rivers keep changing over a series of years due to various
reasons depending upon their source, nature of catchment area, soil and structure or riverbed
and rains etc. Calculation of water power reserves is usually based on 95% or 50%
dependable discharge. All hydel project in the state being run of the river ones, there is no
room for spinning reserve, which means the generation capacity during the winter months
cannot be raised more than half the generation capacity. Besides like the Diesel Engines,
where the decompression due to wear and tear causes de-ration of capacity, hydro-turbines
also follow the same rule and unless these machines are maintained as per set routine, they
become sluggish affecting the generation capacity adversely. As such, it is very important
that all the civil structures right from intake weir to tailrace including hydro-mechanical parts
are maintained and re-strengthened periodically thereby giving them a new lease of life.
The state manages partially only to meet its base load demand from its run-of-the-
river hydel power plants. Unlike other mode of generating stations like Thermal, Diesel, Gas
or Nuclear, which run on fuel, the hydro generating stations run on availability of water.
Quality and quantity of water running the turbines play an important role on its life and
output of the machine respectively. As for example, a Diesel engine requires more fuel to run
on higher load than at lesser load, the hydro generating sets also require more water to run the
turbine at higher load profile.
But the department is not in a position to attend to the routine maintenance and
periodical renovation on all the installations owned by the Department due to the reasons like
unproductive expenses on wages and salaries and huge pending liabilities, which have been
brought to the knowledge of the Government.
Number of Consumer Revenue collection
Domestic Commercial ( Rs in lakhs)
District
Commercial HTS LTIS BS TOTAL
East 34253 5154 139 128 124 5545 4327.78
West 13661 740 7 18 348 1113 131.22
North 6115 667 8 1 65 741 261.49
South 19453 2527 53 66 77 2723 654.31
Total 73482 9088 207 213 614 10122 5374.8
Source: Sikkim Statistical Profile
The entire Teesta and Rangit river basins warrant a unified resource development
programme. It could help to do more together than their efforts could possibly accomplish
separately. Hydropower development in the plains involves construction of huge dams,
displacement of habitats and submergence of land and properties. Whereas in the hills it is
very simple and they are environment friendly. The projects in the Teesta cascade are all
underground except the diversion dam, which hardly involve displacement and submergence.
Rangit HE Project (60 MW) is in operation and 510 MW Teesta HE Project Stage-V is is
commissioned by NHPC under central sector. Central Water Commission is engaged in
investigation of Rangit Stage-II and IV. Total Hydro-power generated by the State sector
during 2010-11 is depicted in the table below-
Sl.No Name of the Installed Gross Auxilliary Net Remarks
Projects Capacity generation Consuption Generation
(MW) (MU) (MU)
l LLHP 2x6.00 24.195 0.0573 24.1374
2 JPH 6x0.35 3.163 0.0342 3.1285
3 RIMBI-I 3x0.20 0.165 0.0033 0.1613
4 RIMBI-II 2x0.50 0.415 0.0023 0.4123
5 ROTHAK 2x0.10 0 0 0 Power
house
abandoned
6 Rongnichu 5x0.50 0.854 0.0117 0.8423
7 Chaten 2x0.50 0 0 0 Power
house
abandoned
8 Meyongchu 2 x 2.00 6.589 0.0054 6.5832
9 URHP 4 x 2.00 0 0 0 No
generation
10 Kalez 2 x 1.00 0.76 0.0042 0.7562
11 Lachung 2 x 0.10 1.025 0.0123 1.0125
12 Rabomchu 2 x 1.50 3.522 0.0089 3.5131
13 DPH 4 x 1.00 0.153 0 0.153
Gangtok
14 DPH LLHP 4 x 0.248 0.001 0 0.0007
Ranipool
Total 41.892 40.84 0.1396 40.7007
Source- State statistical Profile
Power Sector is the key input to the economic sustenance of any State. Sikkim is
no exception in this, largely because here Power Industry, unlike other Industries, is not only
the propelling instrument but in itself a revenue generating sector for this tiny state. The land
locked hilly terrains marred with long rainy season may be inhibiting factors for the growth
of industrial developments, but the same two natural features bestow the state a concentration
of hydro potential.
Though the first generating unit was installed in the State as early as in 27th May,
1927, it was only in 1962 that the electricity was made available to the general public in
Gangtok. In the meanwhile, the demand started growing at a rather slow pace and the State
Government added some meager capacity by installing DG sets and micro hydel units
progressively. In 1979-82, when 12 MW LLHP was commissioned, the state could take up
Rural Electrification Schemes, thereby more villages were electrified and the demand started
growing. At present the peak load during winter is of the order of 61 MW and it is expected
to grow rapidly.
With the launching of liberalized power policy by the Government of India and the
opening of the sector for private developers, Sikkim is poised to gain in a big way and is
looking forward to earn significant revenue by exploiting its huge potential, which is assessed
at 8000 MW seasonal with a firm base of 3000 MW. Details of hydro electric projects allotted
to different private and public sectors as on March 2011 is given in the following table
Road:
Transport and communication is one of the most important factors for industrial development
and economic progress of s State especially in a hilly region like Sikkim. The absence of a
rail network or commercial air services means that motor transport is the only means of
transport. And among the roads, there is heavy dependence on a single highway – National
Highway – 31 A (NH-31(A)) of 41 Kms is Sikkim‟s main transport link with rest of the
country and the world for that matter. Any major disruption on NH-31 A cuts Sikkim‟s only
link with the world. Other than NH – 31 A, the entire road network of the State comprises
of Border Roads, State highway, major district road, other district roads, Other roads, &
PMGSY roads. Border roads and National Highway are maintained by BRO, Besides the
Border roads and National Highway under BRO total Roads in Sikkim as on 31st March 2011
is 2074.55 and is maintained by Department of Road & Bridges , Govt. of Sikkim.. The total
roads of 2074.55 kms maintained by the State Government includes 203.03 kms of State
Highway, 740.15 kms of Major District Roads and 861.65 kms of other District Roads, 238.37
Kms of Other roads and 31.35 Kms of New cutting. Construction of roads under PMGSY is
under the supervision of Rural Management & Development Department and total length of
roads constructed under this programme till June 2012 is 1007.6 Kms.
Registration Of Motor Vehicles:
A total of 3215 numbers. of vehicles has been registered in the state of Sikkim
till March 2015 . The different categories of vehicles registered in the east district is
depicted in the table below-
The topography and climate of the region makes the terrain vulnerable to landslides
and erosion hence the road are inconstant need of repair. While the climate and terrain make
road maintenance on going and expensive exercise, timely maintenance can save a lot of
work and money in the long run. In many places, the rubble has been cleared to the extent
that traffic can squeeze through. This makes the journey into and out of the state time
consuming, arduous and dangerous in places.
Railway:
Presently, there is no rail facility in the State. The nearest railway stations is Siliguri and the
nearest major railway station is New Jalpaiguri in West Bengal which are 114 kms and 125
kms respectively. Computerised passenger reservation facility is operational in Gangtok,
Singtam , Jorethang and Mangan. However, there is a plan to open a rail link from Rangpo
in Sikkim to Siliguri in west Bengal thereby joining Sikkim to the rest of the national railway
network. Although the foundation stone laying ceremony has already been held at Rangpo
when Ms Mamta Banerjee, was Minister of Railways but the wok has not been started yet..
Air Services:
Till date there is no airport in Sikkim but the construction of a green field airport has started
at Pakyong, East Sikkim is likely to be completed by 2016. . The nearest airport is
Bagdogra in North Bengal, which is approximately 4 hours drive from Gangtok. Also there is
a regular 5-seater helicopter service from Gangtok to Bagdogra air port, which is 130 kms
Communication:
The communication system in the State has gained in a rapid pace for the last few years.
BSNL in Sikkim has taken appreciable efforts in making Sikkim as a model telecom state
having the highest tele-density, widest coverage of telecom facilities, providing indirect
employment to the youth through cyber cafe and STD/ISD booth, providing telecom facilities
in remote corner of the State laying optical fiber cable in the most difficult terrain of the
country against the minimum telecom facilities some years back. There has been induction
of the entire new technology equipment internet node in all the district headquarters at
sufficient speed. Optical fiber in almost all the telephone exchanges coverage area of
telecommunication to the remote villages, very less STD ISD rates, timely billing and
customer care has really given an impetuous in development of business, education efficiency
of the employees, convenience to people of Sikkim and it is really giving boost to the tourism
in the state of Sikkim and it has really given boost to the tourism in the State of Sikkim. In
addition to landlines BSNL has also provided mobile and WLL services.
Distribution of Telephone Exchange in the Four District of Sikkim as on Dec
2014
Rural Urban Total
Telephone Connections 2605 8121 10726
Telephone Exchanges 37 10 47
Postal Services:
Office of the Director of Postal Service, Sikkim State is located in Gangtok. The network of
postal services in Sikkim as on 31.03.2013 is depicted in the following table-
The postal services has special facilities of speed post, multi-purpose counter
machines, Head Post Office, Gangtok has a VSAT for quick transmission and payment
of Money orders and electronic mail facilities of Western Union Money Transfer for
international Money Payments.
EDUCATIONAL FACILITIES IN THE STATE
Education Department is a social sector unit which may not contribute directly
to the economic development of the State but has a pivotal role to play in the development of
human resource and skills leading to generation of active and productive citizens who are
able to contribute to the socio-economic progress and lead to the improvement in the level of
living standard of the people. Realizing this fact, the 86th Amendment to the Constitution of
Sikkim too, has defined its role in development of educational system in the
In an all out effort to improve the quality of life of the people, the State
Government has taken major steps to improve the quality of Education by making the
Education setup more purposeful and relevant to the changing times. A school now exists
within walking distance of a child. Free textbooks, free uniforms including school shoes
and bags, free mid-day meals, to children up to Class V, free boarding and special
scholarships for those pursuing higher studies are some of the other educational facilities
enjoyed by the children of the State. Free text books are provided to the students upto class
XI. Beside these during the year 2013-14 Govt. fo Sikkim has started a ambitious project of
providing free laptops to all the students from class XI to college level. School have been
better equipped with modern science equipments, qualified teachers, sports facilities, new
technologies like radio-cum-cassette players, TV & VCR, film projectors and other
corresponding educational software. Intensive efforts are being made to produce young men
and women of character, ability and expertise committed to the service and development of
Medical College, one Engineering College, one Pharmacy Institute, three Polytechnique
North 5 11 17 44
South 17 32 60 120
East 24 37 63 109
West 18 33 44 133
The establishment of a full fledged State Institute of Capacity Building at Karfectar, Jorethang
with the purpose of imparting training, transfer of knowledge and building stronger capacities of
the unemployed youth is perceived with a visionary intent.
The past experience analysis and the general trend of unemployment in the State reveals that a
vast array of training options has to be made available for the educated unemployed youth. This
Institute a centre for youth to learn about their strengths and needs, to prepare for successful and
fulfilling lives as adults, make choices about their futures and take up related training after which
they may be able to build their careers. In a way this Institute is catering to the needs of youth
development which would include strategies related to academic development, delivering quality
and standards based training, work skills, and core values.
The objective is to create highly skilled workforce empowered with improved skills, knowledge
and equipped themselves for earning their livelihood. It aims to increase the productivity of
workforce both in the organized and the unorganized sectors, seeking increased participation of
youth, women and other disadvantaged sections and to synergize efforts of various sectors and
reform the present system.
This Institute caters to all the services that will align the various capacity building and youth
development system, so that the youth of Sikkim are better prepared for promising careers and
post school & College options. This Institute shall identify existing capacity building resource
institutes and entities and experts within the country and even overseas and establish appropriate
national/international linkages and network which may help in addressing proper and successful
transitional needs of the youth of the State.
In the initial stage, this institute has introduced pilot programs, the experience of which will be
examined and on, the basis of which extended programs shall be introduced. As regards the
quality of the program, the Institute has designed courses in such a way as to ensure the quality of
content, including practical training and effective modes of delivery and on –the- job training
etc.This institution has established counseling and placement cell to assist students to make right
educational and vocational choices. Apart from assisting trainees, the institution shall remain in
close contact with employing establishments for job placements of trainees.
The Institution , in view of the Government policy under Chief Minister’s Youth Empowerment
Scheme selects training Partners /Institutions of repute based on parameters of recognition and
accreditation of National and State bodies, experience, past performance and placement records,
viability of records etc.. The institute awards Certificate of Competency on successful completion
of the course based on actual testing of skills that a student has attained by administering
tests/examinations as required under accreditation regulations of Indira Gandhi National Open
University and State Board of Livelihood Schools.
In other hand, the Institute is in process of acquiring affiliation of reputed, leading and recognized
National and International Education and Training Organizations and the certificates thus issued
to its trainees are nationally and internationally recognized.With the setting up of this Institute, the
State will make significant inroads in the growing high rates of unemployment amongst the youth
of Sikkim. It will truly build self reliance in our youth who have imbibed values, life skills, and
livelihood capabilities and are knowledgeable and assertive in demanding their rights in the work
place – “Empowerment”.
The Institute shall in its fold cater to all categories of youth from School Leavers, Youth with
different types of physical disabilities, to rural youth and urban youth.The establishment of this
Institute is an inclusive policy of the State Government that focuses on holistic development of
young people that will shape up their future. It is integrated into the Government’s policy planning
frameworks, both in terms of strategic planning and resource allocation under Chief Minister’s
Youth Empowerment Scheme. The integration would prioritize youth development and ensure its
implementation and to see that the Government’s INTENT becomes a reality.
In these schools the capacities of the unemployed are to be developed to enable them to
sustain themselves economically and it is the first such scheme in the country. These schools
are helping the unemployed youths of State to groom their talents so as to imbibe in them the
ability to harness their skills and become self- reliant. The Government Policy is to give
preference to local resources and utilize the services of from all sectors and within the
Government Sector.
All the 32 Livelihood schools will work under State Institute of Capacity Building, Karfectar,
South Sikkim. The Institute and all Livelihood School will be Governed by a Examining cum
affiliating Board i.e. STATE BOARD OF LIVELIHOOD SCHOOL, SIKKIM (SBLSS) which
has been notified vide Notification No. 246/GEN/DOP dated 09.04.2010, Government of Sikkim.
The institute and Livelihood Schools have become centers for youth to learn about their strengths
and needs, to prepare for successful lives as adults, make choices about their futures and take up
related training after which they may be able to build their careers. In a way this Institute will
cater to the needs of youth development which would include strategies related to academic
development, delivering quality and standard based training, work skills and core value.
Skill Development programmes were initiated by Govt. of Sikkim in the year 2004-
05 with directions to all the line departments to impart skill development trainings in their
respective sectors to unemployed youth . Two percent of plan budget of each line
departments was earmarked for organizing such trainings. With a view to create a single
window agency for skill development , a separate Directorate of Capacity Building under
Department of Personnel was established in August 2007 and brought under Labour
Department in April 2011 and subsequently under Human Resource Development
Department in july 2013. The basic objective and function of this Directorate is to
organize and sponsor vocational trainings to educated unemployed youth within and
outside the state. Since its inception in 2007 till the end of 2010-11, the Directorate has
provided various vocational trainings to 1487 beneficiaries at a cost of Rs 1171.28 lakhs
with an average expenditure of Rs 78768.00 per trainee. However at present the
Directorate is no longer organizing any training programmes and functioning as a
administrative unit as a separate institution called State Institute of Capacity Building with
its headquarter at Regional Administrative Centre, Karfectar , Jorethang South Sikkim has
established in the year 2009. The State Institute of Capacity Building functions through a
network of 43 Livelihood Schools located in all 31 territorial Assembly constituencies.
These livelihood schools impart trainings on different vocations/skills The subjects/skills
/vocations covered under trainings programmes provided in these schools are –
Medicinal Plants Farming, Floriculture, Horticulture Livestock Farming Fisheries,
Security Guards Computer Software & Hardware, Hospitality ,Travel & Tourism Foreign
Languages, Driving cum Tourist Guide, Beauty & Spa, Traditional Crafts Shop
Management, Construction Techniques, Auto Repairing Souvenir Making, White Gadget
Repairing Apparel Designing/Making Land Survey. During 11th plan total of 3306
participants were trained at a cost of Rs 2857.25 lakhs with an average expenditure of Rs
86426/- per trainee. Target for 12th plan is 9600 participants with an estimated cost of 8905
Lakhs.
C. A group of 32(Thirty two) trainees of Lachen-Mangan Livelihood School, East Sikkim for
Hospitality Services Course have been selected and deputed for their 6 (six) months Industrial
Training(IT) at The ITC future Landmark, Indore( 5 star),Madhya Pradesh( 12 girls & 3 boys) and
The Golden Palms Resort, Bangalore (4 star),Karnataka ( 11 girls & 6 boys).The trainees were
escorted by the Centre Head and Assistant Trainer of the School on 21st of 8 January, 2015 from
Sikkim. The Objective of the Industrial Training (IT) was to train them in all the four major
operational departments of a hotel viz.Front Office, House Keeping, Food & Beverage Service &
Food & Beverage Production.
E. The Trainees of Arithang Livelihood School, East Sikkim for Retail Management course were
deputed to Big Bazar, Gangtok (“Big Day occasion”) to undergo mandatory “On Job Training”
(OJT) with effect from 21st January, 2015 to 3rd February, 2015. The objective of OJT was to
provide opportunity to the trainees to get acquainted with the real selling skills, dress & grooming,
duties and responsibilities with different departments and practical experience. Further, the
company appreciated the efforts put in by the trainees and provided certificates to all and reward
to selected trainees for their outstanding performance.
Banking, Finance & Insurance
The involvement of 132 branches of 30 public and private sector Commercial banks
in the developmental activities of the State has shown a steady growth. Growing presence
of the Public Sector Commercial Banks especially in the rural areas, is expected to lead to a
process of consolidation in the banking and financial sector and provide impetus to further
growth. Now ,many private sector Banks, are also operational in some urban , semi-urban
and rural areas of the State . These banks It has also been allotted respective Service Areas
under the Lead Bank scheme and would be participating in the developmental activities of the
State. The office of General Manager Reserve Bank India is also functioning Sikkim since
2009.
Target
No. 29655 2413 7736
Achievement
No. 1591 2265 3435
Achievement in %
No. 5.4% 93.9% 44.4%
Achievement
No. 2209 536 142 2887
Achievement in %
No. 45.6% 50.1% 34.2% 45.6%
Amount
(Rs. in „000) 107.7% 152.9% 58.1% 114.7%
The Small Industries Development Bank of India (SIDBI), National Bank for
Agriculture and Rural Development (NABARD) are functioning in the State to provide
refinance facilities to the Commercial Banks for their priority sector advances through their
office at Gangtok. SIDBI is not only refinancing the Commercial Banks but is also involved
in financing Small Scale Industries (SSIs).
INSURANCE:
A. MSME – DI: Micro, Small & Medium Enterprises –Development Institute, Tadong,
Gangtok and its functions in Brief:
B. Directorate of Industries:
Babasaheb Ambedkar Hastshilp Vikas Yojana (AHVY) as a Centre Plan Scheme was
launched in 2001-02 wherein the main thrust was on adapting project wise, need based
approach for integrated development of potential handicrafts clusters with participation of the
craft persons at all stages of implementation of the scheme. The overall objective is of Socio-
Economic empowerment of artisans and their sustainability.
The scheme envisages a package of support to the cluster of handicraft artisans, which
inter-alia includes basic inputs and infrastructure support in addition to capacity enhancement to
cater to target. While it is an undisputed fact that the Govt. of India and the State Governments
have intervened in meaningful ways that have led to the revival and survival of crafts in the past
few decades, in the light of new economic developments of one global unified market,
handicrafts sector of India has to be strengthened further to be globally competitive. Therefore,
it si compelling urgency to fill in critical gaps which have been taken care of in the scheme
based on Cluster Approach.
II. MARKETING SUPPORT & SERVICES SCHEME:
The handicrafts industry has over the years contributed significantly to the employment
and foreign exchequer of the country. It is omnipresent, with each state contribution through
one or more crafts and has made tremendous progress during the last decade. The demand of
handicrafts products in the domestic as well as international market is huge and varied. Despite
such a high demand, only a fraction of this opportunity is being utilized. The key reasons being
limited access to the market and weak product promotion. Therefore, a concerted effort has to
be made to harness the demand potential of handicrafts both in domestic and international
markets.
The Office of DC (Handicrafts) attempts to address this gap through its Marketing
Support Services scheme which focuses on enhancing the access of artisans and exporters to
various markets and marketing channels alongwith creating awareness about handicrafts
amongst consumers and public at large both in domestic and international markets.
a) Marketing events
b) Assistance for organizing/participation in marketing events in India.
c) Gandhi Shilp Bazaar/Craft Bazars
d) Exhibitions
e) Hiring of built up space in events organized by other organizations.
f) National Handicrafts Fair
g) Assistance for organizing/participation in markting events abroad.
h) Participation in international fairs and exhibition abroad,
i) Folk Craft Festivas of India/Stand Alone Shows/ Road Shows.
j) Market Studies abroad.
k) International craft exposure programme.
l) Compliance, social and other welfare measures.
m) Buyers Seller meet and workshops
n) Buyer Seller meet in India
o) Buyers sellers meet abroad.
p) Marketing Workshops.
q) Workshops/seminars/symposiums/programmes organized aborad
r) Rental for warehousing.
s) Publicity and Brand Promotion
t) Demonstration of Craft
u) Cultural Exchange Programme.
The Design and Technology up-gradation scheme aims to provide design & technology
related inputs including skill up-gradation to the handicraft artisans to improve their
productivity, quality and better marketability of their products.
The objectives of the schemes are as follows:
The Human Resource Development (HRD) Scheme has been formulated to provide
qualified and trained worksorde to the handicraft sector. This workforce shall contribute to a
strong production base leading to production of high quality products that cater to present day
market requirements. This scheme also aims to create human capital for the sector in terms of
trained cadre of designers for the handicrafts by providing relevant inputs through its
components. There is also a provision made for the imparting soft skill considered necessary
for the artisans to enable them to undertake their own business successfully.
Since, most of the handicraft artisans are from rural and poor population of the country,
they are debarred from social requirements like Life Insurance, Health Insurance, etc. To
overcome this, the Office of DC (Handicrafts) have introduced the following comprehensive
welfare Schemes for the welfare of the handicrafts artisans.
The scheme aims at the development of world class infrastructure in the country to
support handicraft production, and enhance the product quality and cut the cost to enable it to
compete in the world market.
During 2014-15, the following activities were undertaken in the State of Sikkim.
DHH since its inception on 9th March 1957 has been actively involved in the
promotion and development of the State of Sikkim. Handicrafts and Handloom have been
identified as a thrust area for industrial acceleration in the State of Sikkim and DHH is
“The main aim of this centre is to preserve and keep alive the age old arts and crafts of
Sikkim.
F. SPICES BOARD
At present, SIDICO is the nodal agency and has been an excellent delivery channel of the State
Government and has successfully implemented the Schemes like Chief Minister’s Self Employment
Scheme, Comprehensive Educational Loan, Chief Minister’s Free Scholarship Scheme, ASIDE
Scheme and other projects mandated to it. Under the Chief Minister’s Self Employment Scheme
educated unemployed youth are provided loans to take up income generating vocations through self
employment. During the financial year 2012-13, the corporation sanctioned Rs. 7.17 crores to 467
beneficiaries as against Rs. 5.46 crores to 238 beneficiaries during the previous year. Since the
inception of the scheme the corporation has sanctioned an aggregate amount of Rs. 78.22 crores to
6817 beneficiaries. Comprehensive Educational Loan Scheme is being implemented by
Government of Sikkim through SIDICO. Under the scheme, educated youth willing to pursue
higher academic studies and professional courses in India and abroad can avail the loan. The
maximum loan amount for study within the State is Rs. 5.00 lakhs, for study in India is Rs. 7.50
lakhs and abroad is Rs. 15.00 lakhs. Loan is interest free for the duration of the course plus one
year or six months after getting employment whichever is earlier. During the financial year 2012-13
total amount of Rs. 6.05 crores to 431 students has been sanctione against the total sanctione of Rs.
7.00 crores to 508 students in the previous year. Total cumulative sanction under the scheme is
34.88 crores to1514 students.
The broad scheme wise classifications of financial assistance sanctioned and disbursed during
the last two years are given below-
Sanctions ( Rs. In Lakhs) Disbursement (Rs in
Lakhs)
Sl. Description 2012-2013 2011-2012 2012-13 2011-12
No No. Amount No. Amount
1 Hotels/Restaurants 7 14.00 9 18.50 7.75 16.50
2 Composite/SSI 1 1.50 5 4.25 0.70 4.25
3 Personal 36 17.40 53 26.05 17.40 26.05
Computers
4 Multipurpose 520 846.00 526 861.80 846.00 861.80
Total 564 878.90 593 910.60 871.85 908.60
Reference- SIDICO-Annual Report 2012-2013
H. NABARD:
Nationalized Bank for Agriculture and Rural development has been providing refinance
support to Cooperative and Regional Rural Banks for short term (agriculture ) and short term
(other than agriculture) activities by the banks. Besides NABARD has been providing
refinance support to Co-operative Banks, RRB‟s and Commercial Banks for investment credit
including Government sponsored programs. Targets and achievements of credit flow to Non-Farm
Sector from NABARD during last three years is shown in the table below-
Year 2012-13 2013-14 2014-15
Agency Agricult Non- Total Agricu Non- Total Agricultu Non- Total
ure Farm lture Farm re Credit Farm
Credit Sector Credit Sector Sector
Credit Credit Credit
Commercia 1526.45 1932.7 3459.2 1947.5 773.79 2749.5 2561.14 8247.2 10808.3
l Banks 6 1 9 3 3 7
State Co- 573.61 38.2 611.81 1157.9 28.15 1186.1 1178.03 7.41 1185.44
op Bank 8 3
Total 2100.06 1970.9 4071.0 3105.5 801.94 3907.5 3739.17 8254.6 11993.8
6 2 7 1 4 1
Source – NABARD, Gangtok.
The cooperative movement in India was officially adopted in the year 1904 by
enacting Cooperative credit societies act 1904. Then the Government dedicated to establish other
types of societies such as consumer, marketing etc. on par with credit societies, by modifying the
earlier act of 1904 and enacted as cooperative societies act 1912 (deleted credit word). The theory
and concept of cooperative movement was extended in the state of Sikkim by official enactment of
“Sikkim cooperative societies act 1955”.
As per the provisions of act and rules, the Government of Sikkim evolved the idea of
establishing the first state level cooperative business organization‟‟ Sikkim State Cooperative
Supply and Marketing Federation Ltd. (SIMFED) with multipurpose cooperative societies at grass
root level, in the two-tier structure of cooperative society. SIMFED finally got established in the
year 1983 with the main intension to undertake wholesale supply of consumer goods
requirement of grass root level cooperative societies and arrange for bulk marketing of farm
surplus including important cash crops in the state.
Achievement/Activities of SIMFED:
Ever since it was commissioned to action in later part of 1984, SIMFED has been able
to achieve the following trade of business-
Stabilized and diversified marketing of principal cash of the state namely large
cardamom, ginger, seed potato, cabbage, apple etc.
Marketing supply of exercise book, computers, furniture and other office equipments.
Procurement and supply of agricultural inputs to Food Security & Agricultural
Department, Horticulture & Cash Crop Department and animal feeds to AHVS
department.
Marketing of almost all types of consumer item required by its affiliated societies at
reasonable price i.e. Siliguri wholesale price.
The turnover and the profitability ( after taxes) of SIMFED for last five years is given
below-
Financial Year Turnover (in Crore) Net Profit after taxes(in Crore)
2010-11 62.73 0.71
2011-12 104.84 0.76
2012-13 105.05 0.64
2013-14 173.18 0.99
2014-15 99.52 0.99
J. SIDBI:
Small Industries Development Bank of India (SIDBIGangtok Branch Office is operational since
April 1990 and is engaged in Promotion Financing and Development of Micro, Small & Medium
Enterprises (MSME) sector and addressing both financial and developmental gaps in MSME eco –
system. A brief summary of the activities in the state of Sikkim is as follows:-
The Sikkim Khadi and Village Industries Board is an autonomous body established by an
Act No.4 of 1996. Various provisions of the Act to go to show that Khadi & village Industries
play a key role in the eradication of poverty by way of generating employment to the educated un-
employed youth and people living in the grass root level and to uplift the down trodden people
above the poverty line. Sikkim Khadi & Village Industries Board is a limb and an implementing
agency of the State Government and Khadi and Village Industries Commission. There is no escape
from saying that only those scheme can be implemented by the Board which bears the approval of
the Govt. Khadi and Village Industries are very important in such a boiling situation of
unemployment. The employment has attended the alarming stage of saturation in and in such a
situation Khadi and Village Industries can play a vital role for providing the livelihood to the
people of the state with the implementation of these schemes by the entrepreneur themselves.
Keeping in view the above mission and motto the Khadi and Village Industries
Commission is extending financial assistance to individuals in rural areas for setting up Village
Industries Units costing up to Rs.25.00 lakhs in each case through margin Money Scheme.
Therefore, this is necessary that the unit is to be set up should be economically viable so that
sustainable employment may be provided in rural areas. At the same time the unit should be able
to generate sufficient surplus from the activity to enable it to repay the loan along with interest. It
puts enormous responsibility on field agency to see that prospective beneficiaries should get proper
guidance for preparation and execution of viable projects.
Sikkim Khadi and Village Industries Board have been running Khdi Bhavan/ Bhandars
and Training cum Production Centre for training, production and sale of Khadi and Village
Industries Products. District –wise list of these centers are given below-:
Districts East West South North
Super Market Khadi Bhandar Khadi Bhandar -
Khadi Bhandar, Gyalshing Jorethang
Gangtok
Khadi Bhawan Khadi Woollen Khadi Bhandar -
Deorali Spinning and Namchi
Name of Centre weaving Centre
Buriakhop
Khadi Bhandar Khadi Woollen Khadi Woollen -
Singtam Spinning and Carding Unit and
weaving Centre Spinning Centre
Samdong Jorethang
Dyeing & Printing Khadi Woollen Khadi Composite -
Unit Aho- Spinning and Centre, Tarku
Yangtam weaving Centre
Begha
Khadi Cotton Khadi Woollen Khadi Cotton -
Spinning and Spinning and Spinning and
weaving Centre weaving Centre weaving Centre
Martam Mendogaon
Khadi Cotton Khadi Cotton -
Spinnming and Spinning Centre
weaving Centre Wok
Raley Khesey
Ready made unit Khadi Cotton -
Deorali Spinning and
weaving Centre,
Gom
Carpentry & Khadi Cotton -
Blacksmithy unit weaving Centre,
Aho Yangtam Turuk
Charkhadi Stor
Deorali
Hosiery Training
Centre Aho-
Yangtam
L. SIKKIM STATE COUNCIL OF SCIENCE & TECHNOLOGY:
After India joined the World Trade Organisation in 1995 it has committed itself to the
WTO agreements and the Intellectual Property Rights. The IPR issues have far reaching
consequences on the competitive and efficient functioning of the MSMEs.
The state government has notified Sikkim State Council of Science & Technology under
Department of Science & Technology and Climate Change as a nodal agency for Intellectual
Property Rights in order to promote, stream line and look after the matter related to IPR and its issue
in the state.. A Patent Information Centre is also functioning at Sikkim Science Centre, Marchak,
East Sikkim. The PIC is functioning under the Sikkim State Council of Science & Technology,
Govt. of Sikkim. Five Numbers of awareness programmes on IPR have been organized by
Patent Facilitation Centre at different colleges and in Sikkim University.
Sikkim being rich in Biodiversity, Traditional Knowledge and its practices, different
Agriculture and Horticulture products along with handloom & handicrafts items possess huge
potential for GI registration. Considering potential and probable threat of infringement to these
traditional and ethnic designs/ products, PIC Sikkim has filed for GI registration of four
products. They are Sikkim Orange ( Mandarin), Sikkim Temi Tea, Sikkim Dzongu Lepcha Hat
(Sumuk Thyaktuk) and Sikkim Dzongu Lepcha Dari/ Weave ( Thokro). Out of these four , GI
registration of first two items have been accepted by Technology Information Forecasting &
Assessment Council (TIFAC), New Delhi. Two films- Gyapo (A story) & Kathaa ( A story )
has also been filed for copyright by the centre. One local variety of rice-kalo Nunia developed
by one of the progressive farmer of Sikkim has also been applied for the registration for
Farmers Variety as Kailash Rana Manger under Plant Protection Variety & Farmers Right
(PPV & FR ) Act 2001 and Plant Protection Variety & Farmers Right Rule 2003. Beside these
Trademark and Logo for Biodegradable plastic is under process
M. KVIC-PRIME MINISTER EMPLOYMENT GENERATION
PROGRAMME (PMEGP):
The Ministry of MSME has launched a new credit linked subsidy programme called PMEGP
on 15th August 2008 for generation of employment opportunities through setting up of micro
enterprises both in rural & urban areas. This is a central sector scheme administered by Ministry of
MSME. The scheme is implemented through State KVIC Directorates, State KVIB and District
Industries Centers and banks. The Govt. subsidy under the scheme is being routed by KVIC
through the identified Banks for eventual distribution to the beneficiaries/ entrepreneurs in their
Bank accounts. The objective of the scheme is to generate employment opportunities both in rural
and urban areas through setting up of new self Employment micro enterprises.
Quantum and Nature of financial assistance: KVIC will provide margin money (subsidy)
through the banking system as given below:
South 35 10
West 46 24
Total 121 52
The North Eastern Development Finance Corporation Ltd. (NEDFi) is a Public Limited Company
registered under the Companies Act 1956 on 9th August 1995. It is notified as a Public Financial
Institution under Section 4A of the said Act and was registered as a NBFC in 2002 with RBI. The
management of NEDFi has been entrusted upon the Board of Directors comprising representatives
from shareholder institutions, DONER, State Governments and eminent persons from the NE or
outside regions having wide experience in industry, economics, finance and management.
The basic objective of the establishment of NEDFi is to provide financial assistance to micro, small,
medium and large enterprises for setting up industrial, infrastructure and agri-allied projects in the
North Eastern Region of India and also Microfinance through MFI/NGOs. Besides financing, the
Corporation offers Consultancy & Advisory services to the state governments, private sectors and
other agencies. Sector or state specific studies are conducted under its Techno-Economic
Development Fund (TEDF) and is the designated nodal agency for disbursement of Govt. of India
incentives to the industries in the North-East India under North-East Industrial and Investment
Promotion Policy, 2007 (NEIIP 2007). Its other promotional activities include NEDFi Haat, NEDFi
Convention Centre, NEDFi Pavillion etc.
NEDFi is an ISO 9001:2008 certified company since 2001 and its mission is for the economic
development of the North Eastern region of India by identifying, financing and nurturing
commercially and financially viable projects in the region. Network of its branch offices are located
in Agartala & Udaipur in Tripura, Dimapur & Kohima in Nagaland, Itanagar in Arunachal Pradesh,
Shillong in Meghalaya, Aizawl & Lunglei in Mizoram, Imphal in Manipur, Guwahati (HQ), Silchar
& Tinsukia in Assam and in Gangtok and Namchi in Sikkim. NEDFi, Gangtok Branch Office started
its operation in the state of Sikkim from November 2003. Since then Gangtok B.O has been
discharging all the activities and functions of NEDFi from developing activities to sanctioning and
appraising of credit proposals in the state of Sikkim. It took initiatives to extend handhold support to
the emerging entrepreneurs of the state by organizing various entrepreneurship development
programmes, market linkages beside extending credit support. With a view to provide better services
the every corner of the state, NEDFi has set up another branch at Namchi, South Sikkim in the year
2011, which will cater to the financial needs of the South and West districts of the State.
Details of Loans and advances made available by NEDFi , Sikkim Branch is given below-
Sikkim is one of the least industrially developed state in India, heavily dependent on
Central Government grants, and needs to undertake an all around development effort to be at
par with the other states of the country. It is, hence, necessary to identify the priorities and
emphasize the significance the objectives of speedy industrial development and generation of
adequate employment opportunities. Keeping these objectives in mind, the industrial policy
attempts to satisfy the aspirations of the people, through economic and industrial
development of the state.
Sikkim became 22nd state of the Indian Union on 16th May 1975. During the merger ,
with a view to protect the interest of local people certain special provisions were incorporated
in the constitution . Under this provision people from outside the state cannot acquire land and
start any commercial establishment in Sikkim in their name . Entrepreneurs from outside
Sikkim can take land on lease and start a business after obtaining prior permission from State
government only.
E i g h t y p ercent of the population lives in rural Sikkim and agriculture plays a
dominant role in the State economy with the total cultivable land of around 70,000 hectares,
the per capita availability of land is a meager 0.18 hectares. The rugged mountainous
terrain, fragmentation of land erosion of the hilly tracts, geographical seclusion of Sikkim
from mainland India, bottlenecks transportation, dependence on traditional methods of
cultivation, etc. have contributed to the low productivity of agricultural crops and difficulties
in undertaking large scale farming. Consequently, there has been very limited improvement in
the methods of agriculture over the years.
The main crops produced are rice, wheat, maize, large cardamom and ginger, with
potential for the commercialization of large cardamom, ginger, fruits, tea, medicinal herbs
and exportable flowers. There are large areas of fallow land available which can be
converted into productive farms for cash crops. Sikkim produces 80 percent of India‟s
large cardamom, which enjoys a high value export market in Pakistan, Singapore and the
Middle- East. The ginger is also of a good quality and has export prospects. The large
cardamom and ginger can hence be converted into value added products. Fruits can be
processed for value addition. Exotic flowers can be cultured for export. Honey and tea
are other agro-based products that have high potential. There is a good market for the minor
forest produce of the State.
The varied altitude is ideal for the cultivation of a variety of herbs, which can be used
in the manufacture of medicines, cosmetics and aromatic products. The climate is ideal for
the development of mulberry plantation and hence, the establishment of a sericulture
industry. The absence of profitable marketing network and the lack of appropriate processing
facilities for manufacturing quality finished products has resulted in most of the produce
being sold at uncompetitive prices to other states as raw materials, and their true potential has
not been exploited. Therefore, due attention needs to be given for the development of agro-
based, food processing and forest based units.
There are good prospects for setting up dairy and animals husbandry units on a
commercial basis. The milk production offers opportunities for developing processed food
products like cheese, butter, etc. The population being predominantly non-vegetarian, meat-
processing and packaging units offer promise in the state
.
The state has a good resource base of minerals like zinc, lead, copper, dolomite, coal,
quartzite, graphite, talc etc., Commercial exploitation of some of these minerals is being
carried out by the Sikkim Mining Corporation. The traditional, cottage industries and
specially handicrafts enjoy a good national and international market but more needs to be
done on upgrading quality and design, as well as production and also improvement in the
marketing network.
The abundant natural beauty of Sikkim offers a good potential to attract foreign and
domestic tourists, and is conductive to the setting up of tourist spots, holiday resorts leisure
camps of trekking and adventure sports activities. However, to develop and sustain the
tourism industry, adequate travel and tourism related infrastructure needs to be created.
Conference Tourism can also be promoted. The state is dependently only on a network of
roadways for transportation. At present, no air or water transport facilities are available.
During the monsoon season road network within the state and National Highway 310 which
connects Sikkim with the rest of the world gets disrupted due to landslides . Therefore there
is an urgent need for upgrading National highway and the road network within Sikkim.
Accommodation facilities are at present only adequate for tourists and must thereafter
be enhanced. The overall power situation though comfortable must be suitably enhanced to
induce more power intensive industries to the state. Human resources need to be developed
with the ultimate objective of creating the necessary skills commensurate with the future
industry and market requirements.
Details of Enterpreneurship Memorandum Part II filed by MSMEs in Sikkim:
Table-1
2014-15 0 0 1 6 7
Table-2
Table-4
9 Ess Vee Gee Breweries (P) Ltd. Manpur, South Sikkim ENA/Cattle feed
10 Yuksum Breweries Ltd. Melli South Sikkim Beer
11 Swiss Garnier Genexiaa Sciences Mamring Busty P.O Rangpo Cosmetics
South Sikkim -737132
12 Micro Labs Ltd. Mamring Namthang Road P.O Pharmaceuticals
Rangpo South Sikkim -737132
WEST DISTRICT-
Sl. Name Location Main Activity
No Manufacturing
.
1 The Aryan Regency Lower Pelling, West Sikkim Hotel 2 Star
2 The Retreat by Zuri Baiguney West Sikkim Hotel 3 Star
NORTH DISTRICT-
Sl. Name Location Main Activity
No Manufacturing
.
1 The Modern Regency Lachung North Sikkim Hotel 2 Star
The State public Sector Enterprises are:
However, three of the State Public Sector undertakings have been closed because these
units have been incurring huge losses over the years. These three units are SITCO, Sikkim
Jewels Ltd. and SPI Ltd.
LIST OF PROSPECTIVE INDUSTRIES/ MSME ACTIVITIES IN SIKKIM
1. Potato Wafers.
2. Spice & Curry Powder.
3. Pickles & Condiments.
4. Popcorn
5. Mini Bakery
6. Wax Candle
7. Detergent (Cake/Liquid)
8. Screen Printing
9 Automobile Servicing
10. Laundry
11. Beauty Parlor
12. Readymade Garments
13. School Bags & Uniform Fabrication.
14. G.I. Wire Netting for Boulder Binding
15. Steel wooden furniture fabrication/repair
16. Carpentry Shop
17. Watch repairing and servicing
18.Paper/ Leaf Plate Making
19. Vermi composting
20. Mini Printing Press
21. Tourist Information service centre
22. Poultry
23. Piggery
24. Herbal Medicine
25 Repairing of Electrical and Electronics Household items
27 Cut flower preservation
28 Umbrella Assembly
29 Video & Audio CD Recording
30 PCO & Xerox
31 X-Ray & Diagnostic Centres
32 Orchid & Exotic Plant Packaging
33 Medicinal Plant cultivation
34 Milk & milk products processing.
35 Squash, Jam & Jelly etc.
36. Wool Knitting both by hand and machine operated
37. Packaging unit of food products and other items
38. Incense stick from local forest based products
39. Spectacle lens grinding
40 Tea Packaging
41. Sanitary Napkins
42. Sugar Candy.
43. Dehydrated leaf/flower/plants
44. Stone chips crushing (Mobile stationery)
45. Aluminum Fabricated Door & Windows
46. M.S. Rolling & collapsible Shutters
47. Wrought Iron furniture
48. M.S. Building Hardware
49. Umbrella assembling unit
50. Automobile garage
51. Two & three wheeler repairing & servicing
52. Broom Bindings
53. Pump & Generator set repairing & servicing
55. Distribution & Logistics Boxes
56. Heater/Geysers
57. Servicing of Electrical gadgets.
58. Tapioca Papad/Powder.
59. Woolen Garments Manufacturing.
Future Prospect: The future prospect of the development of the enterprises in the state is
very encouraging. A good number of small and medium manufacturing industries have also
been set up in the state. These units are providing employment opportunities not only to the
unemployed youths of the state but also to those from outside the state. These industries are
mainly engaged in the manufacturing of pharmaceutical products, chemicals, pet bottles, food
products, iron rods, liquors, paper cartons, etc. Further, with the development of tourism in
the state many small and medium service units have been set up. These units are mainly
engaged in Hotels & Resorts, Home Stays,etc.
For development of Industries in the State of Sikkim Ministry of Commerce and Industry,
Department of Industrial Policy and Promotion, Govt. of India vide no. 14(2)/2002-SPS
Dated 23rd December 2002 approved a special package of Incentives.
THE POLICY INITIATIVES UNDERTAKEN BY THE CENTRAL & STATE GOVT.
The State Govt. of Sikkim has embarked upon the rapid industrialization of the state.
It has enacted a no. of policy measures to assist the investors for setting up industries in Sikkim.
These measures include among others investment subsidy on total investment; subsidy on
captive power generating sets; special incentive to the pioneer unit; special incentives for
women entrepreneurs; stipendiary support for EDP; allotment of land; subsidy on state
transport; power subsidy, etc. Ministry of Commerce and Industry, Department of Industrial
Policy and Promotion, Govt. of India has approved a package of fiscal incentives and other
concessions for the North East Region which include among others excise duty exemption;
income tax exemption; capital investment subsidy; interest subsidy; comprehensive insurance;
incentives for service/ other sector industries; incentives for bio-technology industry; incentives
for power generating industries; transport subsidy,etc. The Policy Initiatives undertaken by the
State and Central Govt. towards industrialization of the state is given below:
EXTRAORDINARY
PUBLISHED BY
AUTHORITY
GOVERNMENT OF
SIKKIM LAW
DEPARTMENT
GANGTOK
No. 18/LD/2000 Dated 6.7.2000
NOTIFICATION
The following Act of the Sikkim Legislative Assembly having received the
assent of the Governor of 3rd day of July,2000 is hereby published for general information.
To make provisions for incentives for tiny, small scale, medium scale and
large scale industries set up within the State of Sikkim.
Whereas it is expedient to make provisions for incentives for tiny, small
scale, medium scale and large scale industries set up within the state of Sikkim.
(e) “Fixed Investment” means investment made in land building, plant and machineries
and other capital goods;
(f) “Partnership Firm” means a unit formed by two or more persons;
(g) “Proprietorship” means a unit owned by a single person‟
(h) “Small Scale Industry” means where the investment in fixed assets in plant and
machineries, (i.e. excluding the cost of land, building, etc.) whether held on ownership
terms or on lease or on hire purchase, not exceeding 100 lakhs;
(i) “Working Capital” means that component of fund loan which is required for meeting
up the expenditure on day to day operation of a unit including cost of inventories, raw
materials, component works in progress and operative expenses like wages, salaries,
power charges and other recurring expenses;
(j) “Working Capital Loan” means a loan required for acquisition current assets for
meeting day to day requirements of an industrial unit for completing the operation cycle
and include cash credit and over draft facilities and any other short term loan required by
the industrial unit;
(k) “Year”
st means the financial year commencing on the first day of April and ending on
the 31 day of March next following.
Disqualification
2. Where an industrial unit falls to furnish any information or material particulars or record
or document or having received the benefits available under the act is found to have
resorted to malpractice or misused benefits of concessions or suppresses or furnishes
wrong information or is otherwise found to have not acted bonafide shall be disqualified
from availing any benefits or concession or incentive under the Act.
Repea
l All the notifications, orders, instructions, circulars, schemes etc. issued from time to
time for
the purpose of extending benefits/incentives/concessions to industry both tiny, small
scale or medium/large scale industry are hereby repeated.
By Order of the Governor.
T.D. Rinzing,
Secretary to the Govt. of
Sikkim, Law Department
SIKKIM
GOVERNMENT GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
Gangtok Monday18th August, 2003 No. 264
PUBLISHED BY AUTHORITY
Gangtok Monday18th August, 2003 No. 264
GOVERNMENT OF SIKKIM
LAW DEPARTMENT
GANGTOK
No. 11/LD/RC/2003 Dated 13th August,2003
NOTIFICATION
The following Act of the Sikkim Legislative Assembly having received the assent of
the Governor on 4th day of August,2003 is published for general information:-
THE SIKKIM INDUSTRIAL PROMOTION AND INCENTIVE (AMENDMENT) ACT, 2003
(ACT NO. 11 OF 2003)
AN
ACT
To amend the Sikkim Industrial Promotion and Incentives Act,2002.
BE it enacted by the Legislature of Sikkim in the Fifty-Fourth Year of the Republic of India as
follows:-
Short title and 1. (1) This Act may be called the Sikkim Industrial
commencement Promotion and incentive (Amendment) Act,2003
(2) Industries set up in the thrust area shall get a 30 percent subsidy
subject to a maximum of rs.1.25 lakhs (Rupees one lakhs and twenty
five thousand). Incase of units set up by local entrepreneurs in the
thrust area subsidy will be 60 percent subject to a maximum of rs.2.50
lakhs.
Special incentive 6C. a new unit with fixed capital investment exceeding As. 3
To the Pioneer Unit crores set up in a district where there are no medium or large Scale
Industries will be given pioneer status. Such unit will be eligible for
additional state Capital Investment Subsidy of 5% of fixed capital
investment subject to a ceiling of rs.1.0 lakhs. Such units will also be
given Power subsidy for an additional period of 2 years.
Special incentive 6D. Special incentives as detailed below shall be granted to
for women Women entrepreneurs namely:-
entrepreneurs. (1) Additional state Capital Investment subsidy of 5% subject to a
ceiling of Rs.5 lakhs which constitute more than 50% of the workforce
in the industry.
(2) additional Interest Subsidy on working capital of 2% subject to a
ceiling of 1 lakh for a period of three years from the date of
commencement of commercial production.
(3) Built up factory sheds shall be allotted to the women entrepreneur
on priority basis and the rent will be subsidized @ 75% of the
economic rent for a period of five years from the date of
commencement of commercial production.
Stipendiary 6E. Stipend at the rate of Rs.500/-(Rupees five hundred) per
Support for EDP month trainee shall be provided for training of 100 youth annually for
special entrepreneurship development Programme (EDP) to be
conducted by Government approved/recognized institutions subject to
the condition that the training period shall not be less than 3 (three)
month duration.
Reimbursement of 6F. Small Scale, Village and cottage Industrial Units will be Stamp
Duty and reimbursed in full for the amount paid towards stamp duty Registration Fee
and registration fee for securing loans and other incentives from
Financial Institutions including mortgage of fixed assets. The
reimbursement will be admissible after disbursement of loan by
financial Institutions/Banks and will be subject to the condition that the
assets mortgaged would not be transferred for a period of 5 years.
Local employment 6G.(1) The state Government will reimburse annually upto
Promotion grant 30% (thirty percent) of the realistic wage bill for local employees.
This would be for three years from the date of entertainment. The
maximum limit of such subsidy is Rs.1 lakh (Rupees one lakh)
(2) Fifty percent of the cost incurred on the training of local employees
will be reimbursed subject to the following conditions namely:-
(a) Such trained person shall be absorbed in the unit failing which the
unit will refund the subsidy amount paid for the same.
(b) Training shall be conducted in an Institute approved by the State
Government.
Subsidy on cost 6H (1) Cost of Laboratory Equipment for the purpose of
Incurred on quality quality control and ISI certification subject to a maximum
Control measures of Rs. 10,000/- (Rupees ten thousand) per unit will be reimbursed in
cases where it does not form part of the project cost. For local
entrepreneurs rs.20,000/- (Rupees twenty thousand) per unit will be
reimbursed.
(2) Export oriented units committing to export at least 50% (fifty
percent) of the value of the turnover will be eligible for an additional
reimbursement of rs.1,00,000/- (Rupees one lakh) against such quality
control measures. For local entrepreneurs Rs.2,00,000/- (Rupees two
lakhs) will be reimbursed.
Subsidy on study 6J Entrepreneurs sent out side Sikkim with the approval of
tours and inplant the Director of Industries for study tours and in plant
Training. Training shall be eligible for reimbursement of the return
journey expenses of second class train fare and an allowance of
Rs.1,000/- (Rupees one thousand) per monism per entrepreneur;
Provided that the period of such a study tour/inplant training
should not exceed three months and the entrepreneur shall give an
undertaking in writing to the Department of Industries that he/she
shall start an industrial unit after obtaining the necessary technical
know how of the industry concerned.
The study tour and in plant training for a period not exceeding
three months may also be made available for workers who are sent
outside the state.
Provided that the industrial unit sending such workers shall obtain
and undertaking from them that than shall work in the unit at least
for a period of three years from the date they complete training.
The reimbursement of expenditure on return journey of second
class by train and allowance of rs.500/- (Rs. Five hundred) per
workers shall be eligible to the industrial unit concerned in such
cases.
Allotment of land 6K The state Government shall endeavour to provide a developed land
with all infrastructure facilities at Growth Centres to all new units
except those in the “Services” and Village Industries Sector” in the
following manner, namely:-
Amendment of section 6 In the said Act, for the existing section 8, the following section
shall be substituted namely:-
T.D. Rinzing
Secretary to the Govt. of Sikkim
Law department
F.No.16(82)LD/2003
SIKKIM
GOVERNMENT GAZETTE
EXTRAODDINARY
PUBLISHED BY AUTHORITY
Gangtok Monday, 17th February,2003 No.32
GOVERNMENT OF SIKKIM
DEPARTMENT OF INDUSTRIES
No. 14(2)/2002-SPS
Government of India,
Ministry of Commerce and Industry,
(Department of Industrial Policy and Promotion)
New Delhi, Dated 23rd Dec.,2002.
OFFICE MEMORANDUM
Subject: New Industrial Policy and other concessions for the State of Sikkim.
The Government of Sikkim has requested for a special package for
development of industries in the state on the lines for the North East Industrial Policy notified
by the Central Government vide Ministry of Industry‟s OM No. EA/1/2/96-IPD dated 24th
Dec.,1997. Discussions on strategy and Action Plan for development of Industries and
generation of employment in the State of Sikkim were held with the various related
Ministries on the issues inter alia, infrastructure development, financial concessions and easy
market access.
2. Keeping in view the fact that the state of Sikkim lags behind in industrial
development, a need has been felt for structured interventionist strategies to accelerate
industrial development of the State and boost investor confidence. The new initiatives would
provide the required incentives as well as an enabling environment for industrial
development, improve availability of capital and increase market access to provide a fillip to
the private investment in the state.
3. The matter has been carefully considered by the Government and it has been
decided to provide the following package of incentives for the State of Sikkim.
3.1 Fiscal Incentives to new Industrial Units and substantial expansion of existing
units:
i) New industrial units and existing industrial units on their substantial expansion
as defined, set up in Growth Centre, Industrial Infrastructure Development
Centers (IIDC) and other locations like industrial Estates, Export Processing
Zones, Food Parks, IT Parks, etc., as notified by the Central Government are
entitled to 100% (hundred percent) income tax and excise duty exemption for
a period of 10 years from the date of commencement of commercial
production. Thrust Sector Industries as mentioned in Annexure - II are
entitled to similar concessions in the entire State of Sikkim without area
restrictions.
ii) All New industries in the notified location would be eligible for capital
investment subsidy @ 15% of their investment in plant and machinery, subject
to a ceiling of As 30 lakhs. The existing units will be entitled to this subsidy
on substantial expansion, as defined.
iii) An interest subsidy of 3% on the working capital loan would be provided to all
new industrial units in notified locations for a period of 10 years after the
commencement of commercial production. This benefit would also be
extended to existing units in notified locations on expansion as defined, as
well as to Thrust Industries shown in Annexure – II.
iv) The insurance premium to the extent of hundred percfent on capital
investment for a period of 10 years would be extended by the Central
Government to all new units and to existing units on their substantial
expansion, as defined.
i) The funding pattern under the Growth Centre Scheme currently envisaging a
Central assistance of As 10 crore for each centre is raised to As 15 crore per
centre.
ii) The financing pattern of Integrated Infrastructure Development Centres (IIDC)
between Government of India and SIDBI will change from 2:3 to 4:1, and the
GOI funds would be in the nature of a grant, so as to provide the required
infrastructures support.
3.3 The above concessions/subsidies shall be available to all new units and to the
existing industrial units on their substantial expansion as defined, in the
industrial areas notified by the central Government (Annexure-I) and Thrust
Industries (Annexure-II) irrespective of location.
3.4 Ineligible industries under the policy:
Explanation:
(i) The eligible areas for above concessions and thrust industries are as
identified in Annex-I & Annex-II respectively.
(ii) The notification regarding definition of substantial expansion of the
existing units shall be issued separately.
4. Government reach, yes the right to modify any part of the policy in public interest.
Secretary Industries
Govt. of Sikkim
Annexure – I
Identified locations for notification under the new industrial Policy for the State of Sikkim.
1. EAST DISTRICT
Gangtok Sub-Division in East District
Rangpo-Mazitar-Bardang-Singtam-Topachani-Martam-32 Mile-West Namli
(Radong)-Samlik-Marchak-Ranipool-Tadong-Deorali-Gangtok-Burtuk-
Bhojogari-Panthang-Pen long-Adam Pool-Rumatek.
Pakyong Sub-Division in East District
Ranipool-Saramsa-Aho-Chota Singtam-Namchey Boong-Lal Turning-
Pakyong.
2. SOUTH DISTRICT
Namchi Sub-Division in South District
Melli-Lower Kitam-Manpur-Mazitar-Jorethang-(Along the state Highway)
Jorethand-Karfektar-Chisopant-Nandugaon-Namchi-Boomtar-Mamring
3. WEST DISTRICT
Soreng Sub-Division in west District
Rohtak-Piplay-Baiguney-Reshi-Legship-Naya Bazar-Cudang-Soreng
4. NORTH DISTRICT
THRUST INDUSTRIES
Sl.No. Activity
OFFICE
MEMORANDUM
Subject: North East Industrial and Investment Promotion Policy (NEIIPP), 2007
The Government has approved a package of fiscal incentives and other concessions for
the North East Region namely „The North East Industrial and Investment Promotion
Policy (NEIIPP), 2007’, effective from 1.4.2007, which, inter-alia, envisages the
following:
(i)
Coverage :
The North East Industrial Policy (NEIP), 1997 announced on 24/12/1997 covered
the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland
and Tripura. Under NEIIPP, 2007, Sikkim will also be included. Consequently, the
„New Industrial Policy and other concessions for the State of Sikkim‟ announced
vide O.M. No. 14(2)/2002-SPS dated 23/12/2002 and the Schemes there under i.e.
Central Capital Investment Subsidy Scheme, 2002, Central Interest Subsidy Scheme,
2002 and Central Comprehensive Insurance Scheme, 2002, notified vide
Notifications No. F. No.
14(2)/2002-SPS dated the 24.12.2002 will be discontinued from
1.4.2007.
(ii)
Duration
All new units as well as existing units which go in for substantial expansion, unless
otherwise specified and which commence commercial production within the 10 year
period from the date of notification of NEIIPP, 2007 will be eligible for incentives
for a period of ten years from the date of commencement of commercial production.
100% Excise Duty exemption will be continued, on finished products made in the
North Eastern Region, as was available under NEIP, 1997. However, in cases, where
the CENVAT paid on the raw materials and intermediate products going into
the production of finished products (other than the products which are otherwise
exempt or subject to nil rate of duty) is higher than the excise duties payable on the
finished products, ways and means to refund such overflow of CENVAT
credit will be separately notified by the Ministry of Finance.
100% Income Tax Exemption will continue under NEIIPP, 2007 as was available
under
NEIP,
1997.
Capital Investment Subsidy will be enhanced from 15% of the investment in plant
and machinery to 30% and the limit for automatic approval of subsidy at this rate
will be Rs. 1.5 crores per unit, as against Rs. 30 lakhs as was available under NEIP,
1997. Such subsidy will be applicable to units in the private sector, joint sector,
cooperative sector as well as the units set up by the State Governments of the North
Eastern Region. For grant of Capital Investment Subsidy higher than Rs. 1.5 crore
but upto a maximum of Rs. 30 crores, there will be an Empowered Committee
Chaired by Secretary, Department of Industrial Policy & Promotion with
Secretaries of Department of Development of North Eastern Region (DONER),
Expenditure, Representative of Planning Commission and Secretary of the
concerned Ministries of the Government of India dealing with the subject matter
of that industry as its members are also the
concerned Chief Secretary/Secretary(Industry) of the North Eastern State where the
claiming unit is to be located. Proposals which are eligible for a subsidy higher than
Rs. 30 crores, will be placed by Department of Industrial Policy and Promotion
before the Union Cabinet for its consideration and approval.
New industrial units as well as the existing units on their substantial expansion will
be eligible for reimbursement of 100% insurance premium
The following industries will not be eligible for benefits under NEIIPP, 2007:-
(i) All goods falling under Chapter 24 of the First Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986) which pertains to tobacco and
manufactured tobacco substitutes.
(ii) Pan Masala as covered under Chapter 21 of the First Schedule to the
Central
Excise Tariff Act, 1985 (5 of 1986).
(iii) Plastic carry bags of less than 20 microns as specified by Ministry
of Environment and Forests Notification No. S.O. 705(E) dated
02.09.1999 and S.O. 698 (E) 17.06.2003.
(iv) Goods falling under Chapter 27 of the First Schedule to the Central
Excise
Tariff Act, 1985 (5 of 1986) produced by petroleum oil or gas refineries.
Incentives under NEIIPP, 2007 will be applicable to the following service sector
activities/industries:
I. Service Sector :
(i) Hotels (not below Two Star category), adventure and leisure sports
including ropeways;
(ii) Medical and health services in the nature of nursing homes with a
minimum capacity of 25 beds and old age homes;
A number of tax concessions under the existing provisions of Section 10A and
10AA of the Income Tax Act are already available to the IT sector. However, one
of the important impediments to the development of Software Technology
Parks or IT related SEZs in the North Eastern Region is the non-availability of
trained human resources in the North Eastern Region. Accordingly, tax benefits as
is availed under Section 80 IC of the Income Tax Act would be extended to IT
related training centres and IT hardware units.
II. Incentives for Bio-technology industry :
The biotechnology industry will be eligible for benefits under NEIIPP, 2007 as
applicable to other industries.
The Transport Subsidy Scheme would continue beyond 31.3.2007, on the same
terms and conditions. However, an early evaluation of the Scheme will be carried
out with a view to introducing necessary safeguards to prevent possible leakages
and misuse.
2. The „New Industrial Policy and other concession in the North Eastern
Region‟ announced vide O.M. No. EA/1/2/96-IPD, dated 24.12.1997 (NEIP,
1997) will cease to operate with effect from 1.4.2007. Industrial Units which have
commenced commercial production on or before 31.3.2007 will continue to get
benefits/incentives under NEIP, 1997.
3. Government reserves the right to modify any part of the Policy in public interest.
(N.N. Prasad)
-Sd-
(Karma Gyatso) IAS
Chief Secretary to the Government
File No. STCST/347/Dev
SIKKIM
GOVERNMENT GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
LAW DEPARTMENT
GOVERNMENT OF SIKKIM
GANGTOK
NOTIFICATION
The following Act passed by the Sikkim Legislative Assembly and having received the assent
of the Governor on the 16th day of April, 2007 is hereby published for general information:
AN ACT
Further to amend the Sikkim Industrial Promotion and Incentive Act 2000
BE it enacted by the Legislature of Sikkim in the Fifty-eight Year of the Republic of India as
follows:
Short title and 1. (1) This Act may be called the Sikkim Industrial
inserted.
Amendment of 4. In the said Act, for the existing Section 12 A the following
for the entire period of deferment as the case may be. At the
(2) The levy of State Excise Duty and Sales Tax on units
By Order.
R.K.Purkayashta (SSJS)
LR-cum-Secretary,
Law Department
SIKKIM GOVERNMENT GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
Gangtok 11th June,2013 No.281
GOVERNMENT OF SIKKIM
LAW DEPARTMENT
GANGTOK
The following Notification which has been published in the Gazette of India
Part – II section 3 sub-section (II) dated: 5th November, 2012 issued by the
Ministry of Labour and Employment is hereby republished for general
information:-
The Gazette of India
PUBLISHED BY AUTHORITY
WEEKLY
No. 46] NEW DELHI, NOVEMBER 11-NOVEMBER 17, 2012,
SATURDAY/KARTIKA20-KARTIKA 26, 1934
Separate Paging is given to this Part in order that it may be filled as a
separate compilation
PART II-Section 3 – Sub-section (II)
Statutory Orders and Notification Issued by the Ministries of the
Government of India
(Other than the Ministry of Defence)
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MINISTRY OF LABOUR AND EMPLOYMENT
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New Delhi, the 5th November, 2012
S.O. 3439.--- In exercise of the powers conferred by sub-section (3) of
Section 1 of the Employees’ State Insurance Act, 1948 (34 of 1948) the Central
Government hereby appoints the 1st December, 2012, as the date on which the
provisions of Chapter IV (Except Sections 44 and 45 which have already been
brought into force) and Chapters- V and VI [except sub-section (1) of Section 76
and Section 77,78,79 and 81 which have already been brought into force] of the
said Act shall come into force in the following areas in the State of Sikkim namely
:-
Sl No Name of Revenue Areas Sub Division District
1. Areas falling within limits of Gangtok East Sikkim
Gangtok Municipal Corporation
2. Areas falling within limits of Gangtok East Sikkim
Rangpo Nagar Pachayat
3. Areas falling within limits of Gangtok East
SikkimSingtam Nagar Panchayat
4 . Areas falling within limits of Gangtok East Sikkim
Central Pendam Gram Panchayat
5. Areas falling within limits of Namchi South
SikkimMamring Gram Panchayat
6. Areas falling within limits of Gangtok East Sikkim
Sirwani Chalamthang Nagar
Panchayat
[No S-38013/35/2012-S.S.I]
NARESH JAISWAL, Under Secy.
R.K. Purkayastha,
Advisor –cum- Principal Secretary,
Law & Parliamentary Affairs Department,
Gangtok
ORGANIZATIONS INVOLVED IN PROMOTING INDUSTRIES
Following are the brief description of different agencies for rendering assistance to the
entrepreneurs/MSMES
4.MSME-DI , K K Singh
Building , P.O.Tadong,
Gangtok
5.North Easten
Development Finance
Corporation Ltd. ,
Yangthang House , Kazi
road Gangtok
2. North Easten
Development
Finance Corporation
Ltd. , Yangthang
House , Kazi road
Gangtok.
3. SIDICO, Bhanupath
Gangtok-737101 .
4. All other
Nationalized Banks &
Financial Institutions.
12. Nodal Agency for PMEGP Scheme State Office , Khadi &
Village Industries
Commission, Indira Bye
Pass P.o Tadong , East
Sikkim
13 Sponsoring Agencies for PMEGP 1.State Office , Khadi &
Scheme in Sikkim Village Industries
Commission, Indira Bye
Pass P.o Tadong , East
Sikkim