Sikkim : Schemes and Projects

Sikkim : Schemes and Projects

Various schemes have been implemented in the State for the growth and development. In order to provide inclusive growth and provide equal benefits and opportunities to all the people, schemes have been launched.

Various schemes are as

Chief Ministers Start Up Scheme

In order to develop entrepreneurship to young minds , this scheme has been launched. In this scheme, 25% subsidy will be provided with an investment of up to Rs. 20 lakhs. This Scheme is being launched with the objective to boost entrepreneurship and encourage start-up ventures by providing them with financial support. Initially a sum of Rs. 10  crores is being earmarked during this fiscal.

Health

Proud Mother Scheme

A new scheme has been launched with initial allocation of Rs. 5 crores, known as “Proud Mother Scheme” which provides a cash incentive of Rs. 7000 at the time of birth of the first child and another Rs. 10,000 at the time of birth of the second child.

Chief Minister’s Annual and Total Health Checkup (CATCH)

It is first of its kind public Health care initiative in the country .The programme’s first phase covering more than 95% of total population has been completed.

In this health profile of all the citizens have to be made. It provides comprehensive health care with focus on health promotions and preventions of  by annual and periodical head to toe health check up free of cost. for all the citizens of Sikkim.

Mukhya Mantri Jeevan Raksha Khosh

It was started in the state during 2014-15, by the state government under which financial assistance of US$ 0.03 million would be provided to the patients. The patients under the BPL category would be granted a financial assistance of US$ 0.05 million.

Rural Development

Mukhyamantri Nagar Awas Yojana

The state government has launched Mukhyamantri Nagar Awas Yojana. Under this scheme, the Sikkim government will construct 250 residential housing units. The decision was taken by the Sikkim Housing & Development Board.

A list of the beneficiaries of Mukhyamantri Nagar Awas Yojana will be prepared by the state government. Besides this, the state government has also approved housing scheme of flats in east Sikkim. Although this scheme will be joint ventured under the state government and the private agencies but houses will be provided to the poor people of the state.

Green Mission

Sikkim Organic Mission

State has voluntarily adopted Organic mission and act as a role model for the whole world.

The process for bringing total cultivable land of 58,168 hectare under Organic Mission has been started in 2010. Agencies accredited by Agriculture and Processed Food Products Export Development Authority are certifying the organic process in

Organic products like fruits and vegetables not only provide additional value to the farmers but  also provides multiple benefits. It also supplements the ecotourism of the Sikkim .

Sikkim Green Mission

State Green Mission has completed 12 years in June 2017. Its main aim is to boos t green measures in the state. The  mission envisages in avenue plantation and beautification of all vacant and waste lands It protects roads from sides and also in maintaining aesthetic beauty for the travelers.

10 minutes to  Earth Mission

Six lakh saplings of trees and flowering plants are planted every year within 10 minutes just before monsoon since 2009. This will help in sequestering carbon dioxide from the atmosphere.

The forest department provides free saplings to other departments and other organizations. It is also being done in Urban areas, as in these areas ornamental flowers and shrubs have been planted.

Universal Financial Inclusion

The Chief Minister’s Rural Universal Financial Inclusion Programme was launched during the Independence Day Celebration on 15th Aug, 2010. The programme aims to provide universal access to formal banking services to rural Sikkim, provide easy access to formal financial services, ensure inclusive and equitable growth, empower rural women and to accelerate economic development in rural areas in general.

It will also provide insurance services related to house and personal accident to the beneficiary families. Under this programme, about 70,000 rural families in the State will be benefited by opening a savings bank account in the name of the mother of the nuclear family. They will be able to operate this account through a composite biometric smart bank card. The facility for savings and withdrawals from these bank accounts will be provided in the Gram Panchayat Unit itself by opening 163 Points of Service (PoS) facilities to be operated by Banking Business Correspondents as per the Reserve Bank of India guidelines.

Self Sufficiency Mission

Government has made significant strides in transforming it as a producer State particularly in regard to enhancement of produce from the agriculture and allied sectors. State is working hard to ensure that all kinds of demands created in the State are met within the State. And state wants to see the people of Sikkim themselves fulfill local demands by becoming producers of goods and services. State has been successful in achieving 100% chicken meat and eggs self sufficiency within the State. Government is  striving towards creating vital infrastructure for training, value addition and marketing in this sector to enable people to become producers.

Social Security Mission

Under the mission, the State government has initiated various schemes for different age groups. Various shelter homes for welfare of distressed women have been established. Besides, the State government has introduced welfare schemes for Scheduled Castes, Scheduled Tribes, Most Backward Classes and Other Backward Classes. The schemes are in the form of scholarships, inputs to farmers belonging to marginalized section of society, Scheduled Caste sub-plan and Tribal sub-plan and establishments of a development corporation for the various communities.

Government has worked relentlessly to guarantee full socio-cultural and economic security to all section of the people on a larger canvass of human centric development. Special dispensation in various forms and formats is bring provided to the needy and deserving sections of citizens belonging to various social groups, differently abled persons, old aged and vulnerable groups.

Skill Development Mission

The Skill Development Initiative was launched in 2003 and apart from the Directorate of Capacity Building, the State Institute of Capacity Building at Karfectar with state of the art facilities for residential training have been established. Under the Chief Minister’s Self-Employment Scheme 5,780 youths have been covered for self-vocational ventures encompassing various agro-based activities and IT and Tourism related vocations.. Many boys and girls primarily from rural areas are undergoing different kinds of vocational up gradation trainings in such Institutes across the State.

Chief Minister’s Self Reliant Mission

Objective : Main objective is to empower youth to realise their full potential and understand their roles and responsibilities in making full contribution to the development. This mission plays the significant role in creating employment  opportunity  thereby  making  financial  independent  by  setting micr0 small and medium enterprise  in the state.

Various sectors include

Industrial-Manufacturing, Processing & preservation of food items.

Animals Husbandry-Dairy, piggery, Poultry , bee keeping.

Tourism-Rural tourism, eco tourism, gust house, home stays, cyber cafes, restaurant/fast food ,travel agencies, adventure tourism(pare gliding , rafting, trekking).

Handicrafts-indigenous  handicraft like carpet & ravi weaving ,woodcraft, traditional painting ,tailoring ,jewellery, black smithy.

Agriculture, Floriculture & horticulture-organic seed production ,ginger, cardamom, orange & apple plantation. ,vermin  compost,  bio-fertilizer production, orchid production, seasonal flower production etc.

IT Sector-computer hardware, software programming, web designing. Creative Sector-Fashion design, interior design draftsmanship.

Sikkim Tourism Policy 2015

To create a plan for the development of human resources in the tourism sector. Providing a quality experience to tourists by enhancing the infrastructure and transport facilities in the state.

To promote tourism in the state of Sikkim by creating a marketing cell within the Tourism Department.

To establish Sikkim as an ultimate and unique ecotourism destination, offering memorable and high quality learning experiences to visitors to contribute to poverty alleviation and promote nature conservation.

To promote ecotourism in a sustainable manner based on the Global Sustainable Tourism Criteria.

IT Policy of Sikkim

To provide better governance and generate employment.

To improve productivity in government departments through computerization.

To promote the Northeast as an attractive investment destination through several concessions and incentives.

Main Features of Budget of Sikkim

Main Features of Budget of Sikkim

Main theme of the Budget 2017-18 – Sustainable Development

Total Receipts and Total Expenditure

For the fiscal year 2017-18, a gross expenditure of Rs. 6364.02 crores has been projected in the budget.

After taking into account recoveries amounting to Rs. 142.20 crores, the net expenditure comes to Rs. 6221.82 crores.

The fiscal deficit remains in adherence to the fiscal management targets set in the Sikkim Fiscal Responsibility and Budget Management Act, 2010, i.e. not more than 3% of GSDP. The contribution from total tax revenue is of the order of Rs. 669.51 crores and in the case of Non-Tax revenue, Rs. 426.46 crores.

The total gross expenditure includes allocations amounting to Rs. 81.76 crores under the dispensation of the North Eastern Council, Rs. 153.66 crores under Non Lapsable Pool of Central Resources, and Rs. 1326.76 crores under Centrally Sponsored Schemes.

In Union budget, the distinction between Plan and Non-Plan has been done away with from the year 2017-18 onwards. This has been done as a measure towards bringing about major fiscal and budgetary reforms while retaining the distinction on the basis of Revenue and Capital expenditures. Since the Union and the States have to work together on the methodology, State has also adopted the same system from the financial year 2017-18 budget.

Reforms in various sectors

Eco Smart Villages

A new concept of “Eco-Smart Villages” is being proposed in this budget with an initial budgetary provision of 1 crore. This is being proposed on the premise that each village has its own characteristic strengths which can be developed independently in providing welfare services and local employment to the people. Each village could develop their unique development models, whether in the promotion of village tourism, pilgrimage centres or dairy farming, etc. This also includes the development of “One Home One Garden” concept through which each household will develop a personal garden with the Government providing necessary technical support.

Education

Education in Sikkim is free up to the college level and state is further  making sincere efforts to improve educational standards further both in terms of coverage and quality.

A programme for Educational Quality Improvement launched in eight pilot Senior Secondary Schools of the State has received a funding of around one crore from North Eastern Council. Further it is set to be expanded to cover all Senior Secondary Schools of the State.

Energy

In the terms of clean and renewable energy, Sikkim has attained self-sufficiency in power generation. The Teesta Stage-III with 1200 MW capacity was successfully commissioned on 17th February 2017. State’s total installed capacity has improved to 2013.07 MW subsequently, by initiating other hydro electric projects. The on-going 97 MW Tashiding and 96 MW Dikchu hydro power projects are scheduled to be commissioned by April/May of 2017. The installed capacity will be enhanced correspondingly.

This is a historic milestone and it has made the State self-reliant in clean energy production and has boosted the State’s revenue generation capacity. With the commissioning of such power projects at this scale, state is  no more a consumer state when it comes to energy. The state has become a producer State that provides energy for the nation.

It is estimated that Sikkim has a peak potential capacity of 8,000 MW and a steady 3,000 MW of hydroelectric power. About 28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode.

Agriculture

The state government is also laying emphasis on improving organic farming in the state. During 2015-16, the state government recognized the existing MPCS in the state to promote and enhance organic farming in the state. As a result of these initiatives, the state was certified as the first fully organic state in India, by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

The Sikkim Organic Mission is introducing an e-voucher card system as an effective mechanism to distribute assistances under the Direct Benefit Transfer for ensuring that the Scheme funds are channeled directly to the beneficiaries. This would be a first of its kind initiative in Sikkim and probably in the Country as well.

The state government launched Sikkim AGRISNET, an internet-based agriculture information centre, to promote scientific agricultural methods and convert research into practice in the agricultural sector.

The Sikkim government has announced a technical collaboration with floriculturists from the Netherlands and Thailand to develop the state’s potential in floriculture and market cut flowers from the state globally.

The state government is targeting to launch new agricultural schemes for making farming more profitable in the state and allowing the youth to determine agriculture as a budding source of livelihood. Implementation of such schemes is expected to result in increase in the area utilization for the cultivation and production of various crops.

The Sikkim Government plans to set up Tea Development Corporation of Sikkim, which would be the nodal agency for developing the tea Industry in Sikkim. It would work to expand the Temi tea estates in the state and acquire new gardens either wholly or partially owned by the government.

Tourism

Tourism in Sikkim has emerged as the new profession of the  people with its vast natural potential. Promotion of village tourism, homestay, cultural tourism, trekking tourism, ecotourism, wellness tourism, flori–tourism and adventure tourism has given fillip to the tourism trade in the state where a large of number of people are engaged under different employment opportunities.

Infrastructure

As of 2015-16, Sikkim had a total road network of 2,425.45 km. The state government proposed an allocation of US$ 15.36 million for construction of roads and bridges in the state and US$ 7.46 million for road transport.

The total allocation of budget for urban development is estimated to be US$ 5.94 million during 2015-16. In addition, US$ 17.14 million would be allocated for the development of water supply and sanitation and housing sector in the state.

Industry

Allocated budget for the industry and minerals sector in Sikkim is estimated to be US$ 9.46 million. Out of this total allocation, villages and small industries would be allocated US$ 5.97 million and large industries would be allocated US$ 2.75 million. The remaining US$ 0.73 million would be allocated to the non-ferrous mining and metallurgical industries of the state.

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low manufacturing and labour costs. Sikkim is home to 14 major pharma companies, which have significant investments in the state. These include Cipla, Sun Pharma, ZydusCadila, Alembic, IPCA, Alkem Lab, Intas Pharma, Torrent Pharma and Unichem.

In order to give a boost to handloom and handicrafts sector, the Government of Sikkim has been making several efforts, which include providing training to upgrade the quality and designs of the products; bringing expertise and professionals for their marketing and supply, etc.

The Government of Sikkim has placed information technology high on its agenda. The budget allocation for information and broadcasting is expected to be US$ 0.96 million during 2015-16.

The Department of Information Technology, Government of Sikkim is in the process of setting up an IT park and National Institute of Electronics and Information Technology (NIELIT) at Pakyong. The IT Park will have state-of-the-art facilities that will offer a plug and play environment and cater to the specific needs of the information technology and business process outsourcing (BPO) segments.

 

An Introduction to Economy of Sikkim

An Introduction to Economy of Sikkim

Sikkim is surrounded by vast stretches of Tibetan Plateaus in the north, the Chumbi Valley of Tibet and the Kingdom of Bhutan in the east, the Kingdom of Nepal in the west and Darjeeling district of West Bengal in the south. Sikkim has several snow-capped peaks including Kanchenjunga, the world’s third highest peak that attracts a large number of tourists from across the globe. The state has been able to bag seven out of 25 central government’s national projects to promote India as destination for adventure tourism globally.

The gross state domestic product (GSDP) of Sikkim expanded at a high compound annual growth rate (CAGR) of 19.44 per cent between 2004-05 and 2015-16.

There has been a drastic shift in the sectoral contribution from primary and tertiary to the secondary sector. In 2015-16, the secondary sector contributed 67.73 per cent to the state’s GSDP at current prices. It was followed by the tertiary sector at 23.65 per cent and primary sector at 8.62 per cent. Moreover, at a CAGR of 33.91 per cent, the secondary sector has been the fastest growing among the three sectors from 2004-05 to 2015-16. It was driven by manufacturing, construction and electricity, gas & water supply.

Agricultural Sector

The state’s economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, barley, oranges, tea and cardamom. Sikkim produces more cardamom than any other Indian state, and is home to the largest cultivated area of cardamom

Sikkim has a suitable climate for agricultural and horticultural products. It supports multiple crops; viz., rice, wheat, maize, millet, barley, urad, pea, soya bean, mustard and large cardamom. Sikkim is the top producer of large cardamom, contributing over 80 per cent to India’s total production. As per the state budget 2016-17, Sikkim got certified as first fully organic state in India by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

Organic Farming

Sikkim has been transformed as the first Organic State of the country and the world by design and have opened unlimited opportunities in sectors like Agriculture, Horticulture and Animal Husbandry.

Currently, state is exporting large cardamom, ginger, buckwheat, turmeric and cymbidium orchids. Our aim has been to fulfil the domestic market and export our surplus production outside the state.

Under the National Mission on Agricultural Extension & Training, new emerging organic technologies are being disseminated to the farmers through training, demonstration, farm schools, exposure visits, formation of commodity interests groups and food security groups, etc.

The Sikkim Organic Mission is introducing an e-voucher card system as an effective mechanism to distribute assistances under the Direct Benefit Transfer for ensuring that the Scheme’s funds are channeled directly to the beneficiaries. This would be a first of its kind initiative in Sikkim and probably in the Country as well.

Industrial Sector

There has been a drastic shift in the sectoral contribution from primary and tertiary to the secondary sector. The overall performance of the economy of the state during 2015-16 was encouraging. At a CAGR of 33.91%, the secondary sector witnessed the fastest growth among the three sectors during 2004-05 to 2015-16. It was driven by manufacturing, construction and electricity, gas & water supply. In 2015-16, the secondary sector contributed 67.73% to the state’s GSDP at current prices.

The state follows the North East Industrial Investment Promotion Policy, 2007, which provides several incentives and concessions for investment. Institutional support is provided through various central and state government agencies viz., North East Council, Ministry of Development of North Eastern Region and Commerce and Industries Department.

The main industries like Brewing, distilling, tanning and watchmaking are located in the southern regions of Sikkim.

A small mining industry exists in the state, extracting minerals such as copper, dolomite, talc, graphite, quartzite, coal, zinc and lead. Sikkim has identified Rangpo-Gangtok, Melli-Jorethang, Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with provision for giving land to investors on a lease basis.

The units that are engaged in the manufacturing sector are mainly dealing with pharmaceuticals, chemicals, liquors, foam mattresses, food products, iron rods, etc.

Sikkim has identified agro-based industries, horticulture and floriculture, minor forest-based industries, animal husbandry and dairy products, tourism-related industries, IT including knowledge-based industries, precision oriented high value-low volume products, hydro-power, tea, education and hospitality as thrust sectors.

The Information Technology (IT) Department, Government of Sikkim is in the process of setting up a state-of-the-art IT Park and National Institute of Electronics and Information Technology (NIELIT) at Pakyong.

The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 3.93 billion during the period April 2000 to March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).

Tertiary sector

Industrial sector was followed by the tertiary sector at 23.65% and primary sector at 8.62%. The tertiary sector grew at a CAGR of 15.23% between 2004-05 and 2015-16. The growth has been driven by trade, hotels, real estate, finance, insurance, transport, communications and other services. The primary sector grew at a CAGR of 15.55% between 2004-05 and 2015-16.

Tourism provides the main thrust to the economy. With the tranquil climate, the natural beauty and the fine cultural heritage of Sikkim, the growth of tourism has immense possibilities. There are large number of places of tourist attraction particularly the snow clad mountains, the lakes and unspoiled forest areas and valleys of flowers. The advantage of having very fine monasteries in Sikkim can also be taken to attract Buddhist tourists from countries like Japan and the South Eastern countries.

Sikkim was the first to promote the concept of eco-tourism, village tourism and home stay tourism in the country. This essential concept promoting man-nature affinity has been recognized as a new model of tourism.  Promotion of village tourism, homestay, cultural tourism, trekking tourism, ecotourism, wellness tourism, flori–tourism and adventure tourism has given fillip to the tourism trade in the state where a large of number of people are engaged under different employment opportunities.

Sikkim has been featured and ranked 17th in the New York Times “52 best places to go in 2017”. Similarly, Sikkim has also been featured as the best destination to visit in the world in 2014.

The Year 2017 has been declared as the Year of Sustainable Tourism for Development, an area of development in which Sikkim has already made considerable strides with eco-friendly tourism and the development of innovative initiatives such as Chaar Dham and Tathagatha Tsal. Additionally, Gangtok City has been recognized as the safest tourist destination in the country.

FDI inflows  into the state during April 2000 to March 2016 reached to US$ 3.93 billion. A major part of these investments was directed towards power generation There are 27 completed electricity projects in the state. The central government has invested heavily in the hydro electric power generation projects in Sikkim Himagiri Hydro Energy Pvt Ltd. started the initial construction work of their new project namely; 300 MW Panan hydro power project.

Recent Developments

Allocated budget for the industry and minerals sector in Sikkim is estimated to be US$ 9.46 million during 2016-17. Out of this total allocation, villages and small industries would be allocated US$ 5.97 million and large industries would be allocated US$ 2.75 million. The remaining US$ 0.73 million would be allocated to the non-ferrous mining and metallurgical industries of the state.

Sikkim’s geographical and environmental conditions are quite conducive for development of floriculture at a higher altitude. The state is also considered to be the Kingdom of flowers and is an innovator in cultivating Gladiolus.

The state government is also laying emphasis on improving organic farming in the state. During 2015-16, the state government recognized the existing MPCS in the state to promote and enhance organic farming in the state. As a result of these initiatives, the state was certified as the first fully organic state in India, by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

It is estimated that Sikkim has a peak potential capacity of 8,000 MW and a steady 3,000 MW of hydroelectric power. About 28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode.

Other Key achievements

Nirmal Rajya

Sikkim became the first Nirmal Rajya in the country in 2008 by achieving 100% sanitation coverage and the  first State to achieve Open Defecation Free (ODF) status in the beginning of 2016.

Zero Poverty

Sikkim is the State with zero hunger and the first poverty free State in India. This goal has been achieved through consistent policy prescription and a rigorous implementation regime.