SIKKIM THE LAND OF PEACE AND TRANQUILITY - DO-DRUL CHORTEN STUPA IN GANGTOK, SIKKIM - IBEF

 
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SIKKIM THE LAND OF PEACE AND TRANQUILITY - DO-DRUL CHORTEN STUPA IN GANGTOK, SIKKIM - IBEF
DO-DRUL CHORTEN STUPA IN GANGTOK, SIKKIM

 SIKKIM
 THE LAND OF PEACE AND TRANQUILITY

For updated information, please visit www.ibef.org                                     APRIL 2018
SIKKIM THE LAND OF PEACE AND TRANQUILITY - DO-DRUL CHORTEN STUPA IN GANGTOK, SIKKIM - IBEF
Table of Content

  Executive Summary .…………….….……...3

  Advantage State ...………………………….4

  North East Region Vision 2020 ...………....5

  Sikkim – An Introduction …….………...…...6

  State Budget 2017-18……………..….……15

  Infrastructure Status ..................................16

  Business Opportunities ……..………….....30

  Doing Business in Sikkim …..…...….…….47

  State Acts & Policies ….….……….............50
SIKKIM THE LAND OF PEACE AND TRANQUILITY - DO-DRUL CHORTEN STUPA IN GANGTOK, SIKKIM - IBEF
EXECUTIVE SUMMARY

                                                Sikkim is home to around 5,000 species of flowering plants, 515 rare orchids, 60 primula species & 36
        Strong floriculture
                                                 rhododendron species. This makes it one of the leading states in the Northeast region in terms of production &
       sector                                    supply of cut flowers to mainland consumer markets.

       Strong potential of                       Of the 6,000 medicinal plants in India, over 424 plants (including the famous Artemisia vulgaris that is used as
       medicinal plants                           an antiseptic) are grown in Sikkim. Moreover, it is all set to be recognised and certified by the Government of
       industry                                   India under National Medicinal Plant Board (NMPB) proposed under the 12th Five Year Plan.

       Second-largest                            The state is considered as a huge cardamom epicentre of the world, producing around 80 per cent of large
                                                  cardamom in the country. Additionally, India is the world leader of the crop, producing over 50 per cent of the
       producer of cardamom
                                                  global yield.

       Presence of world’s                      Sikkim has mighty snow-capped peaks including the Kanchenjunga, the world’s 3rd highest peak, which
       third highest peak                        attracts a large number of tourists from across the globe.

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

    Source: Ministry of Agriculture, Government of India

3         SIKKIM                                                                                              For updated information, please visit www.ibef.org
SIKKIM THE LAND OF PEACE AND TRANQUILITY - DO-DRUL CHORTEN STUPA IN GANGTOK, SIKKIM - IBEF
ADVANTAGE: SIKKIM

         March
                                      High economic growth and stable                               Conducive agro-climatic conditions                       Potential
          2018
                                              political environment
                               Sikkim’s GSDP grew at a compound annual growth                 Sikkim has favourable agro-climatic conditions, which
                                rate (CAGR) of 11.05 per cent between 2011-12 and               support agriculture, horticulture & forestry; there is
        Installed
                                2016-17.                                                        potential for development in related areas                   Estimated
      hydro power
                               Large production of cardamom and flowers has opened            As per the state budget 2016-17, Sikkim got certified       hydropower
       generation
                                up immense possibilities for the state economy.                 as the first fully organic state in India by the Central     potential:
        capacity:
                               Rail and air connectivity as well                               Ministry of Agriculture and Farmers’ Welfare as well as      8,000 MW
        823 MW                                                                                  other recognized agencies of the country.
                               as optical-fibre networks are
                               being developed in the state.
                                                                                      Advantage
                                                                                       Sikkim
                                                 Rich labour pool                                           Policy and institutional
                               Sikkim has a high literacy rate of around 81.42 per                                   support
                                cent.
                               The state has a skilled and educated labour force.             The state follows the North East Industrial Investment
                               With the establishment of Sikkim Manipal University             Promotion Policy, 2007, which provides several
                                and the Sikkim University, the quality and quantity of          incentives and concessions for investment.
                                employable graduates in the state has steadily                 Institutional support is provided through various central
                                improved.                                                       & state government agencies viz., North East Council,
                               Skilled labour contributes in the modernization of the          Ministry of Development of North Eastern Region &
                                state through the development of services sector.               Commerce and Industries Department.

    Source: Central Electricity Authority, GSDP: Gross State Domestic Product;

4         SIKKIM                                                                                                  For updated information, please visit www.ibef.org
SIKKIM THE LAND OF PEACE AND TRANQUILITY - DO-DRUL CHORTEN STUPA IN GANGTOK, SIKKIM - IBEF
NORTH EAST REGION VISION 2020

                                                     Improving standard of living of
                                                                                                     State government has set a target to
                                                      people in the region to meet the
                                                                                                      grow GSDP by 9.5% and per capita
                                                      national standard by 2020
                                                                                                      GSDP by 8.3% over the period 2007-
                                                     Improving the quality and creating
                                                                                                      20.
                                                      state-of-art hospitals and
                                                      educational institutions

                       Encouraging public investment in                                                                              Better governance and ensuring
                        infrastructure to attract private                Quality of life of         Growth rate in
                                                                                                                                       peace and harmony through
                        investment.                                         people                     GSDP1
                                                                                                                                       maximising self governance and
                       Creating a centre for trade and                                                                                increased people participation.
                        commerce through improving              Promoting
                                                               investments                                           Governance
                        relations with neighbouring
                        countries.                                                       Vision
                                                                                         2020
                        Encouraging HYV crops                                                                       Industry         Development of agro-processing
                                                                Agriculture
                         through better use of organic                                                                                 and sericulture industries.
                         manure, fertilisers and
                                                                                                                                      Increase in investment in
                         pesticides.                                         Infrastructure           Tourism                          manufacturing units depending
                        Preventing soil erosion by                                                                                    upon the availability of resources
                         controlling floods.                                                                                           in the region.
                        Promoting cultivation of
                         horticulture crops.
                                                   Facilitating easy movement of                   Focusing and developing
                                                     goods and people by investing in                services that would promote
                                                     road, rail, inland water and air                tourism and create employment
                                                     transportation.                                 opportunities in the states.

    Source: NER Vision 2020, HYV: High Yielding Variety, 1GSDP is at fixed costs at 2006-07 prices

5       SIKKIM                                                                                                           For updated information, please visit www.ibef.org
SIKKIM FACT FILE

                                                                               Nepali, Bhutia, Lepcha, Limboo, Magar, Rai, Gurung, Sherpa,
                                                                                Tamang, Newari & Sunuwar (Mukhia) are the commonly spoken
                                                                                languages. Hindi & English are also widely spoken. Sikkim has 10
                                                                                mountain peaks, 84 glaciers, 315 glacial lakes (including the
                                                                                Tsomgo, Gurudongmar & Khecheopalri), 5 hot springs & 8 mountain
                                                                                passes – making it an ideal tourist location. The Teesta & the
                                                                                Rangeet are the 2 major rivers with nearly hundred tributaries.

                                                                               Parameters                                              Sikkim

                                                                               Capital                                                 Gangtok

                                                                               Geographical area (lakh sq. km)                          7,096

                                                                               Administrative districts (No)                              4
      Sikkim is surrounded by vast stretches of Tibetan Plateaus in the
                                                                               Population density (persons per sq. km)                    86
       north, the Chumbi Valley of Tibet & the Kingdom of Bhutan in the
       east, the Kingdom of Nepal in the west & Darjeeling district of West    Total population (million)                                0.61
       Bengal in the south

      Sikkim has 4 districts – East Sikkim, West Sikkim, North Sikkim &        Male population (million)                                0.32
       South Sikkim. The district capitals are Gangtok, Gyalshing, Mangan
                                                                                Female population (million)                              0.29
       & Namchi respectively
                                                                               Sex ratio (females per 1,000 males)                       890

                                                                               Literacy rate (%)                                        81.42

    Source: Sikkim State Portal, Census 2011

6        SIKKIM                                                                                    For updated information, please visit www.ibef.org
SIKKIM IN FIGURES … (1/2)

    Parameter                                                              Sikkim                All states                                 Source

    Economy                                                              2016-17                  2016-17

       GSDP as a percentage of all states’ GSDP                             0.12                   100.0               Directorate of Economics and Statistics of Sikkim

       GSDP growth rate (%)                                                11.20                   10.83               Directorate of Economics and Statistics of Sikkim

       Per capita GSDP (US$)                                             4,343.02                 1750.29              Ministry of Statistics and Program Implementation

    Physical Infrastructure

       Installed power capacity (MW)                                      962.14                344,002.39               Central Electricity Authority, as of March 2018

                                                                                                                          Telecom Regulatory Authority of India, as of
       Wireless subscribers1 (No)                                      57,322,629              1,156,867,852
                                                                                                                                      February 2018
                                                                                                                          Telecom Regulatory Authority of India, as of
       Internet subscribers1 (Mn)                                          17.38                   445,96
                                                                                                                                     December 2017
                                                                                                                     NHAI, Roads and Building Department-Government
       National highway length (km)                                         463                   1,22,432
                                                                                                                                         of India

    Social Indicators

       Literacy rate (%)                                                   81.42                    73.0                                 Census 2011

       Birth rate (per 1,000 population)                                    16.6                    20.4                                  SRS Bulletin

Note: GSDP, per capita GSDP figures are taken at current prices, Exchange Rate used is average of 2016-17, i.e. USD = 67.09
Note: 1For West Bengal including Sikkim

7      SIKKIM                                                                                                        For updated information, please visit www.ibef.org
SIKKIM IN FIGURES … (2/2)

    Parameter                                                              Sikkim                All states                                Source

    Investment

                                                                                   1                                  Department of Industrial Policy & Promotion, April
       FDI equity inflows (US$ billion)                                      4.19                  367.93
                                                                                                                                 2000 to December 2017

    Industrial Infrastructure

                                                                                                                    Ministry of Finance, Government of India, December
       PPP projects (no)                                                      11                   1,533
                                                                                                                                           2017

    Note: PPP:-Public-Private Partnership, 1Including West Bengal and Andaman & Nicobar Islands, 2Projects Under Construction

8      SIKKIM                                                                                                       For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – GSDP

              GSDP of Sikkim at current prices (in US$ billion)                                                 GSDP per capita of Sikkim at current prices (US$ )

        3                                                                                             0.2    4,400                                                                                                        330000
                                                         CAGR 11.05%                                                                                   CAGR 9.89%                                                         300000
                                                                                                      0.18

                                                                                                                                                                                                               4,343.02
                                                                                            0.19
                                                                                            2.81
        3                                                                                                    4,200

                                                                                                                                                                                                           291372.89
                                                                                                      0.16                                                                                                                270000

                                                                                  2.59
                                                                                  0.17
                                                                    2.52

                                                                                                                                                                                               264903.60
                                                                                                                                                                                                                          240000
                 2.33

                                                                 0.15
                                                                                                      0.14
                                                         2.29
                                  2.27

        2

                                                                                                                                                                                 243392.12
                                                                                                             4,000

                                                                                                                                                                                             4,046.80
                                                      0.14
                                                                                                      0.12                                                                                                                210000

                                                                                                                                                                    221082.97

                                                                                                                                                                                3,980.25
                                            0.12

                                                                                                                                                                                                                          180000

                                                                                                                                           198686.32
        2                                                                                             0.1
                           0.11

                                                                                                             3,800

                                                                                                                      181841.97
                                                                                                                                                                                                                          150000

                                                                                                                      3,792.32
                                                                                                      0.08
        1                                                                                                                                                                                                                 120000
                                                                                                      0.06   3,600

                                                                                                                                                         3,654.26
                                                                                                                                     3,648.97
                                                                                                                                                                                                                          90000
                                                                                                      0.04
        1                                                                                                                                                                                                                 60000
                                                                                                             3,400
                                                                                                      0.02
                                                                                                                                                                                                                          30000
        0                                                                                             0
                                                                                                             3,200                                                                                                        0
                 2011-12

                                  2012-13

                                                      2013-14

                                                                 2014-15

                                                                                  2015-16

                                                                                            2016-17

                                                                                                                      2011-12

                                                                                                                                     2012-13

                                                                                                                                                         2013-14

                                                                                                                                                                                2014-15

                                                                                                                                                                                             2015-16

                                                                                                                                                                                                           2016-17
                                                   US$ billion      Rs trillion
                                                                                                                                                                    US$          Rs

         At current prices, Sikkim’s Gross State Domestic Product                                            The state’s per capita GSDP was Rs. 291,372.89 (US$
          (GSDP) was Rs. 0.19 trillion (US$ 2.81 billion) in 2016-17.                                          4,343.02) in 2016-17 as compared to Rs. 181841.97 (US$
                                                                                                               3,792.32) during 2011-12.
         GSDP expanded at a CAGR of 11.05 per cent between 2011-
          12 and 2016-17.                                                                                     Per capita GSDP increased at a CAGR of 9.89 per cent
                                                                                                               between 2011-12 and 2016-17.

     Note: GSDP, per capita GSDP figures are taken at current prices, Exchange Rate as per slide 51
    Source: Ministry of Statistics and Program Implementation

9       SIKKIM                                                                                                                    For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – NSDP

               NSDP of Sikkim at current prices (in US$ billion)                                          NSDP per capita of Sikkim at current prices (US$)

         3                                                                                      0.18   3,900                                                                                                 300000
                                              CAGR 11.30%                                                                                      CAGR 10.14%
                                                                                                0.16   3,800                                                                                                 270000

                                                                                                                                                                                                  3,833.39
                                                                                         0.17
         3                                                                                             3,700                                                                                                 240000

                                                                                                                                                                                              257182.02
                                                                                                0.14

                                                                               0.15

                                                                                      2.48
                                                                                                       3,600

                                                                                                                                                                                  233953.97
                                                                                                                                                                                                             210000

                                                                            2.29
                                                           0.14
                                                           2.22
         2                                                                                      0.12

                                                                                                                                                                     214147.51
                                                                                                       3,500

                                                                                                                                                                                 3,574.00
                                                0.12
                  2.03

                                                2.02

                                                                                                                                                                                                             180000
                                     1.99

                                                                                                                                                        194624.07

                                                                                                                                                                    3,502.00
                                                                                                0.1    3,400
                                   0.11

                                                                                                                                   174182.75
         2                                                                                                                                                                                                   150000
                            0.10

                                                                                                                 158667.38
                                                                                                0.08   3,300
                                                                                                                                                                                                             120000

                                                                                                                 3,309.02
         1                                                                                      0.06   3,200

                                                                                                                                                 3,216.93
                                                                                                                                                                                                             90000

                                                                                                                              3,198.95
                                                                                                       3,100
                                                                                                0.04                                                                                                         60000
         1                                                                                             3,000
                                                                                                0.02   2,900                                                                                                 30000
         0                                                                                      0      2,800                                                                                                 0
                  2011-12

                                   2012-13

                                                2013-14

                                                           2014-15

                                                                            2015-16

                                                                                      2016-17

                                                                                                                2011-12

                                                                                                                              2012-13

                                                                                                                                                 2013-14

                                                                                                                                                                    2014-15

                                                                                                                                                                                 2015-16

                                                                                                                                                                                              2016-17
                                             US$ billion      Rs trillion
                                                                                                                                  US$ Rs
          At current prices, Sikkim’s Net State Domestic Product (NSDP)                                Sikkim’s per capita NSDP was Rs. 257,182.02 (US$ 3,833.39)
           was Rs. 0.17 trillion (US$ 2.48 billion) during 2016-17.                                      in 2016-17 as compared to Rs.158,667.38 (US$ 3,309.02)
                                                                                                         during 2011-12.
          NSDP of the state expanded at a CAGR of 11.30 per cent
           between 2011-12 and 2016-17.                                                                 Per capita NSDP of Sikkim increased at CAGR of 10.14 per
                                                                                                         cent between 2011-12 and 2016-17.

      Note: GSDP, per capita GSDP figures are taken at current prices, Exchange Rate as per slide 51
     Source: Ministry of Statistics and Program Implementation

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ECONOMIC SNAPSHOT – PERCENTAGE
                     DISTRIBUTION OF GSVA

      The overall performance of the economy of the state during 2016-17                                     Percentage distribution of GSVA
       was encouraging.

      At a CAGR of 12.83 per cent, the tertiary sector witnessed the                                  100%
       fastest growth among the three sectors during 2011-12 to 2016-17.                                         28.82%        CAGR         31.68%
       The growth has been driven by trade, hotels, real estate, finance,                              90%
       insurance, transport, communications and other services.
                                                                                                       80%                     12.83%
      In 2016-17, the secondary sector contributed 59.27 per cent to the
       state’s GSVA at current prices. It was followed by the tertiary sector                          70%
                                                                                                                 62.83%
       at 31.68 per cent and primary sector at 9.05 per cent.                                                                               59.27%
                                                                                                       60%
      The secondary sector grew at a CAGR of 9.43 per cent between
                                                                                                       50%
       2011-12 and 2016-17. The primary sector grew at a CAGR of 12.51
       per cent between 2011 and 2016-17.                                                              40%
                                                                                                                               9.43%
                                                                                                       30%

                                                                                                       20%

                                                                                                       10%
                                                                                                                               12.51%        9.05%
                                                                                                                  8.35%
                                                                                                        0%
                                                                                                                 2011-12                    2016-17

                                                                                                                  Primary   Secondary   Tertiary

      Note: GSDP, per capita GSDP figures are taken at current prices, Exchange Rate as per slide 51
     Source: Ministry of Statistics and Program Implementation

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ECONOMIC SNAPSHOT – AGRICULTURAL
                   PRODUCTION … (1/2)
      The primary sector contributed around 9.05 per cent to Sikkim’s
       GSDP in 2016-17. Agriculture provides livelihood to more than 64                        Crop                                    Production – 2017-18 (‘000 tones)
       per cent of the people of Sikkim, either directly or indirectly. Sikkim is              Fruits                                                    24.01
       the top producer of large cardamom, contributing over 80 per cent to                    Vegetables                                                190.72
       India’s total production. In January 2016, Sikkim was announced as                      Flowers                                                   16.59
       1st fully organic state of India.                                                       Spices                                                    67.14
      Production of total fruits & vegetables in the state during 2017-18
       stood at 24.01 thousand metric tonnes and 190.72 thousand metric                        Sector                                 Allocation (2018-19) (US$ million)
       tonnes, respectively. The area under production for fruits and                          Crop husbandry                                           24.30
       vegetables during 2017-18 was 18,330 hectares and 25,540
                                                                                               Soil & water conservation                                 2.40
       hectares respectively
                                                                                               Animal husbandry                                          9.22
      The state government is targeting to launch new agricultural
                                                                                               Dairy development                                         0.12
       schemes for making farming more profitable in the state and allowing
       the youth to determine agriculture as a budding source of livelihood.                   Fisheries                                                 0.93
       Implementation of such schemes is expected to result in increase in                     Forestry & wild life                                     19.28
       the area utilization for the cultivation & production of various crops.
                                                                                               Plantations                                               1.36
       The state government is also laying emphasis on improving organic
                                                                                               Food, storage & warehousing                               2.94
       farming in the state.
                                                                                               Cooperation                                               2.62
      As of 2017-18, the state had a total area of 77,330 hectares under
       horticulture.                                                                           Other agricultural programmes                             4.25

      As per budget 2018-19, allocation of Rs. 484.52 crore (US$ 67.42
       million) is made for the development of the agriculture & allied
                                                                                                Budget 2018-19 states that total vegetables requirement to feed the
       services sector.
                                                                                                 entire population of the sate (Including tourist and floating
      According to the budget 2018-19, Sikkim will become self sufficient                       population) is 95,000 metric tonnes per annum
       in terms of food grains production within next 5 years.
 Note: Exchange rate as per slide number 51
 Source: ENVIS Centre: Sikkim Annual Report; Sikkim Agrisnet; Spices Board, State Budget 2018-19, Department of Agriculture Cooperation and farmers Welfare

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ORGANIC SIKKIM

                                                                                       Allocation under PKVY scheme (in US$ ‘000)
      In 2003, the state government took the decision to become a fully
       organic state through a declaration in the legislative assembly. In
                                                                               1600.00
       January 2016, Sikkim became the first fully organic state in India.
                                                                               1400.00
       Around 75,000 hectares of agricultural land in the state was

                                                                                                       1,472.1
                                                                               1200.00
       gradually converted to certified organic land by implementing           1000.00
       practices and principles as per guidelines laid down in National

                                                                                                                           1,013.5
                                                                                800.00
       Programme for Organic Production.                                        600.00

                                                                                                                                               614.2
      In 2016-17, the state produced over 80,000 tonnes of various organic     400.00
       vegetables over farm area of 14,000 hectares. More than 28,000           200.00
                                                                                  0.00
       farmers undertake organic farming under the 28 Farmer Produce

                                                                                                       2015-16

                                                                                                                           2016-17

                                                                                                                                               2017-18
       Companies (FPCs).
      The Indian Council of Agricultural Research (ICAR) has established
       three Krishi Vigyan Kendras (KVKs) in Sikkim to impart training to
       farmers in various aspects of agriculture including organic farming
      Paramparagat Krishi Vikas Yojana (PKVY) is a sub-scheme under
       National Mission of Sustainable Agriculture (NMSA) through which              Allocation to Krishi Vigyan Kendras (in US$ ‘000)
       assistance is provided for Organic Farming clusters. The state has
       around 150 clusters and the government plans to develop 200 more        760
       clusters in 2017-18.                                                    740
      In budget 2018-19, Sikkim Chief Minister, Pawan Kumar Chamling          720

                                                                                                                                     738
                                                                               700
       declared Rs 1,000 (U$ 15.45) as monthly pension for farmers             680
       carrying on organic farming activity.                                   660

                                                                                            666
      State Irrigation Plan (SIP) for the period of 5 years from 2017-18 to   640

                                                                                                                 653
                                                                               620
       2021-22 has been approved to surface minor irrigation and Repair,

                                                                                                                                                     627
                                                                               600
       Restoration and Renovation (RRR) of existing water bodies to            580
       support Sikkim Organic Mission.                                         560
                                                                                           2014-15

                                                                                                                 2015-16

                                                                                                                                     2016-17

                                                                                                                                                     2017-18
 Source: Ministry of Agriculture and Family Welfare.

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ECONOMIC SNAPSHOT – FDI INFLOWS &
                   INVESTMENTS

      According to the Department of Industrial Policy & Promotion (DIPP),                       Cumulative FDI inflows in West Bengal1 (in US$ million)
       FDI inflows in West Bengal, along with Sikkim and Andaman &
       Nicobar Islands, during April 2000 to December 2017, totalled US$
                                                                                                  4500
       4.19 billion.

      West Bengal contributes around 1% to the total FDI inflows of the

                                                                                                                                                                                                            4,191.00
                                                                                                  4000
       country.

                                                                                                                                                                                                 3,985.00
                                                                                                                                                                                      3,936.00
      During Bengal Global Summit, a total investment of US$3.48 billion                         3500
       was allocated to the mining and the fisheries sector of the state.
                                                                                                  3000
      The state government has received investment proposals worth US$

                                                                                                                                                                           2,981.00
       33.83 billion during the two-day Bengal Global Business Summit,

                                                                                                                                                                2,742.00
       which was organised in January 2017.                                                       2500

                                                                                                                                                     2,306.00
                                                                                                  2000

                                                                                                                                          1,882.00
                                                                                                  1500

                                                                                                                               1,488.00
                                                                                                                    1,392.91
                                                                                                         1,277.60
                                                                                                  1000

                                                                                                   500

                                                                                                     0
                                                                                                         2008-09

                                                                                                                    2009-10

                                                                                                                               2010-11

                                                                                                                                          2011-12

                                                                                                                                                     2012-13

                                                                                                                                                                2013-14

                                                                                                                                                                           2014-15

                                                                                                                                                                                      2015-16

                                                                                                                                                                                                 2016-17

                                                                                                                                                                                                            2017-18*
 Note: 1Includes West Bengal, Sikkim and Andaman & Nicobar Islands, *from April 2017 to Dec2017
 Source: Department of Industrial Policy & Promotion (DIPP)

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ANNUAL BUDGET 2018-19

     Major sector-wise allocation as per Budget 2018-19
                                                                                                    Annual allocation
      Sector
                                                                                                      (US$ million)

      Roads and Bridges
                                                                                                           43.23
      Food, Civil Supplies and Consumer Affairs
                                                                                                            5.83
      Rural Management and Development
                                                                                                          113.71
      Water Resources and River Development
                                                                                                           20.71
      Forest, Environment and Wild Life Management
                                                                                                           26.98
      Energy and Power
                                                                                                           44.19
      Panchayati Raj Institutions
                                                                                                           60.78
      Social Justice, Empowerment and Welfare
                                                                                                           31.52
      Horticulture and Cash Crops Development
                                                                                                           24.53
      Tourism and Civil Aviation
                                                                                                           15.05
      Food Security and Agriculture Development                                                            15.75
      Commerce and Industries                                                                              11.64
      Animal Husbandry, Livestock, Fisheries and Veterinary Services                                       10.78
      Mines, Minerals and Geology                                                                           0.98
      Health Care, Human Services and Family Welfare                                                       48.37
 Source: Finance, Revenue and Expenditure Department, Government of Sikkim, Budget 2018-19

15      SIKKIM                                                                               For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – ROADS

      As of 2015-16, Sikkim had a total road network of 2,425.45 km. The                      In August 2016, Standing Finance Committee (SFC) approved 16
       state is connected to West Bengal & the rest of India through                            highway projects, worth US$ 1.13 billion , for 11 states, in which
       National Highway (NH)-31A. The state Public Works Department                             Sikkim was also included.
       (PWD) and the Border Roads Organisation (BRO) maintain the                           In April 2017, the Road Transport & Highways Ministry laid the
       roads. The Sikkim Nationalised Transport (SNT) operates 114                           foundation stone of 4 state highway projects in Sikkim. The highways
       buses (covering 43 routes), 64 trucks & 33 tankers across the state.                  would connect the state capital with Singtam, Ravangla, Pakyong &
      The state government proposed an allocation of Rs. 278.59 crore                       Rangpo. The National Highways Infrastructure Development
       (US$ 43.23 million) for roads and bridges department during 2018-                     Company Ltd. will develop the project for a cost of US$ 185.48
       19.                                                                                   million.
      The state government has proposed a vision for the development of                    As per the Road Transport and Highway Ministry February 2018
       roads and bridges until 2020.                                                         report, length of National Highways in Sikkim is 463 km.
        •   To provide safe, comfortable and stable roads, with the capacity                As per budget 2018-19, more than 2977 km new roads have been
            to handle high loading.                                                          constructed since 1994
        •   All places of tourist or economic importance to be connected with
            major district standard roads.
        •   All national highways to be four-laned.                                            Road type                              Length (km) (2015-16)
        •   All state highways to be double-laned.                                             National highways (NH)
                                                                                                                                                463
                                                                                               (February 2018)
      Bus/truck terminus will be constructed at all district headquarters &
       other major stations                                                                    State highways                                 701.09
      600 km of major district roads to be made intermediate lane &
       efforts to black topped with permanent bridges.                                         District roads                                1,080.85
      During 2015-16 (up to December 2015), work on construction of
       1,209.05 km of Rural Connectivity Roads Phase I (new cutting), was                      Other district roads                           334.51
       finished, out of a total length of 1,415.78 km.

 Source: Public Works Roads and Bridges Department, Government of Sikkim, mhupa.gov.in, Ministry of Road Transport & Highways

16      SIKKIM                                                                                                   For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – RAILWAYS AND
                   AIRPORTS

      Indian Railway Construction Company approved the construction of
       rail connectivity between Sevoke in West Bengal to Rangpo in
       Sikkim.
      Total length of rail track between Savor and Rangoon will be 52.7 km
      Rail connectivity between Rangpo-Siliguri is also under construction.
      Construction of much anticipated airport at Pakyong has started
       adding to Sikkim's infrastructural achievements. Helicopter services
       are available from Bagdogra (West Bengal) to Gangtok.
      The construction work at Pakyong airport has been completed and it
       will be inaugurated by 2017 end.
      Furthermore, it is expected that the airport construction which
       includes navigational aids and passenger terminal would be
       completed by June 2017, and once full operational, the airport would
       be capable of handling ATR-72 type of aircraft.
      The Central Government announced new rail projects worth US$
       4.27 billion for Northeast region, including Nagaland. The rail
       projects would connect the capital cities of all Northeast states.
      Gorkhaland Territorial Administration (GTA) provided no objection
       certificate (NOC) to Sevoke-Rangpo railway project, Sikkim’s first
       railway line of 43 km railway track with four stations (Kalijhora,
       Rambhi, Teesta and Melli). The project cost is estimated at Rs
       4,013 crore (US$ 619.86 million).

 Source: North-East Region Rail Infrastructure presentation; Ministry of Railways, Sikkim Times, June 2013, Assorted news articles

17      SIKKIM                                                                                                          For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – POWER

      In March 2018, Sikkim had a total installed power generation                                        Installed power capacity (MW)
       capacity of 962.15 MW, of which 151.03 MW was under central
       utilities, 399.01 MW was under private utilities & 412.11 MW was               1200.00
       under state utilities. Of the overall installed power generation
                                                                                      1000.00
       capacity of in the state, thermal power contributed 87.03 MW, while

                                                                                                                                                                                         962.14
                                                                                       800.00
       hydropower and renewable power contributed 823.00 MW & 52.12

                                                                                                                                                                               758.14
                                                                                       600.00
       MW, respectively.
                                                                                       400.00

                                                                                                                                 305.50

                                                                                                                                           314.00

                                                                                                                                                         323.48

                                                                                                                                                                   414.48
      Power generation in the state increased 120.6 per cent year-on-year                            201.40
                                                                                       200.00   195.50       206.40
       to reach 8,336.59 MW during April-January 2017-18. All villages of
       the state have been electrified.                                                  0.00

                                                                                                 2009-10

                                                                                                             2010-11

                                                                                                                       2011-12

                                                                                                                                 2012-13

                                                                                                                                           2013-14

                                                                                                                                                         2014-15

                                                                                                                                                                   2015-16

                                                                                                                                                                               2016-17

                                                                                                                                                                                         2017-18
      Sarda Energy and Minerals Limited (SEML) plans to add
       hydroelectric capacity of over 125MW over the upcoming 2-3 years
       in Sikkim and Chhattisgarh.
                                                                                                                                                     Source: Central Electricity Authority
      Budget allocation, during 2018-19, for the energy and power sector
       is estimated to be Rs. 284.81 crore (US$ 44.19 million).
                                                                                   Hydro Electric Potential Development Status (in terms of
                                                                                   Installed capacity (in MW)) (March 2018)
      To replace the conventional inefficient bulbs with LED bulbs, the
       state launched Unnat Jeevan by Affordable LEDS & Appliances for
                                                                                   Total Identified capacity (above 25 MW)                                                   4,248
       All (UJALA) in February 2017. With the introduction of this scheme,
       people in the state are expected to witness decline in electricity bills.
      Under the Ujwal Discom Assurance Yojana (UDAY), Rural                       Capacity under operation                                                                  2,169.0
       Electrification Corporation (REC) received US$ 6.35 billion as
       repayment from state distribution companies. The discom raised              Capacity under construction                                                               1,133.0
       US$ 34.21 billion via bonds. The company made an impairment
       provision of US$ 91.63 million for 2 power projects, 1 each in Sikkim
                                                                                   Capacity to be taken up under construction                                                946.0
       & Tamil Nadu.

 Source: Central Electricity Authority

18      SIKKIM                                                                                             For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – TELECOM

      The state recorded tele-density1 of 89.10 per cent in February 2018.    Telecom Infrastructure (As of February 2018)
      Vodafone launched its services in Lachung as the first private
                                                                                                         1
       telecom operator in the region. With this expansion, it has now         Wireless subscribers                                              57,322,629
       covered more than 91 per cent of population in Sikkim.
                                                                                                         1
      Virtual Private Network (VPN) and 3G-services are available in the      Wireline subscribers                                                279,695
       state.
                                                                                                        (1)(2)
      Forty five common service centres have been constructed across the      Internet subscribers                                              17,380,000
       state. The centres provide an internet-based interface for
       implementing various government programmes and schemes.                     Source: Telecom Regulatory Authority of India,1Denotes West Bengal, including Sikkim,

      Postal services are available through India Post and other private      Major telecom operators in Sikkim
       courier services.
                                                                                   Bharat Sanchar Nigam Limited              IDEA Cellular
      As of March 2017, the total number of post offices in Sikkim stood at        (BSNL)
       209.
                                                                                   Reliance Communications
      In November 2016, Airtel launched 4G services in Sikkim, with
                                                                                   Bharti Airtel
       services live in Gangtok. Carrier Aggregation (4G-Advanced)
       technology deployed by Airtel in Gangtok, can offer data speeds of          Tata Teleservices
       up to 135 Mbps on compatible handsets.
                                                                                   Vodafone

 Note: 1Includes West Bengal, 2As of December 2017
 Source: Telecom Regulatory Authority of India

19      SIKKIM                                                                                         For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: URBAN
                     INFRASTRUCTURE … (1/2)

      Under the Jawaharlal Nehru National Urban Renewal Mission
       (JNNURM), the rehabilitation of sewerage systems of Gangtok is                2018-19 Budget states that out 736 Home stay were sanctioned
       being undertaken at a cost of US$ 5.3 million. Water treatment and             earlier, 90 per cent have been completed and made operational
       distribution system upgradation are also being undertaken at a cost
                                                                                     As per Budget 2018-19, all eligible habitation as per 2001
       of US$ 15.74 million.
                                                                                      census in the state shall be connected by PMGSY roads by the
      To extend financial support to the state government and to provide             year 2019
       water supply facilities in towns having population less than 20,000,
       the centrally sponsored Accelerated Urban Water Supply
       Programme (AUWSP) was launched that has been merged with                   Funds Sanctioned to Sikkim under Asian Development Bank
       Urban Infrastructure Development Scheme for Small and Medium
                                                                                  assistance to improve urban services (US$ million)
       Towns (UIDSSMT). Under this, US$ 8.7 million has been allocated
       for development of water supply systems and sewerage in Mangan,
                                                                                                                         Funds sanctioned (US$
       Namchi, Jorethang, Melli and Rangpo. The Sikkim Water Security &            Year
                                                                                                                                million)
       Public Health Engineering Department (WS & PHED) provides water
       supply to Gangtok, six major notified towns, 41 other urban towns           2014-15                                         3.35
       and 92 notified rural marketing centres. Gangtok has a requirement
       of 30 million litres per day and the WS & PHED has a storage and            2015-16                                         2.10
       distribution capacity of 45.5 million litres.

      During 2015-16, the major functions such as solid waste, car/bazaar         2016-17                                         2.09
       parking contract, sanitation, trade license, etc. were relocated to
       urban local bodies. Moreover, during 2016-17, the state government          2017-18*                                        1.18
       is targeting development of residential colonies to minimise
       uncontrollable migration across the state.

     Note: 2017-18* - Up to November 2017
     Source: Ministry of Urban Development, Government of India, Budget 2017-18

20       SIKKIM                                                                                    For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: URBAN
                    INFRASTRUCTURE … (2/2)

      In September 2013, Ministry of Development of North Eastern Region (DoNER) launched North East Rural Livelihood Project (NERLP) that would
       create 0.3 million jobs in Mizoram, Nagaland, Sikkim and Tripura. The US$ 115.1 million project would be implemented during the 12th Five Year
       Plan and is financed by the World Bank. It would be implemented in 14 blocks of Sikkim. The project is expected to be completed by 2018.

      As per budget 2017-18, Mobile technology like M-Tourism, online payment, e-waste, inner line permit tracking system, e-tendering etc. are
       already in place. Efforts will be made to ensure WiFi services in all major towns besides providing for video conferencing facilities as well.

      Moreover, during 2016-17, an announcement was made by the Chief Minister that under “Micro-Cities” concept, development work on 39 small
       bazaars would be undertaken in a phased manner, during 2016-17.

      The total budget allocation for urban development and housing during 2018-19 is Rs. 136.23 crore (US$ 21.14 million).

      Sikkim Government has taken initiative to setup free learning computer centres for its citizens to assist them to learn IT and ICT intervention to
       adapt to upcoming Smart Cities Misson.

     Source: Budget 2016-17, 2017-18

21      SIKKIM                                                                                      For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE
                  PARTNERSHIP PROJECTS

                                                                                                         Project Cost
      Project name                                  Type of PPP           Project Capacity   Sector                              Stage
                                                                                                         (US$ million)

     Panan Hydro Power project Build-Own-Operate-Transfer (BOOT)              99 MW          Energy          137.49          Pre Construction

     Dikchu Hydro Power Plant         Build-Own-Operate-Transfer (BOOT)       51 MW          Energy          79.21          Under construction

     Chuzachen Hydro Power                                                                                                    Operation and
                                      Build-Own-Operate-Transfer (BOOT)      1,200 MW        Energy          68.13
     Plant                                                                                                                    Maintenance
     Bhasmey Hydro Power
                                      Build-Own-Operate-Transfer (BOOT)       500 MW         Energy          22.15          Under construction
     Plant

     Tashiding HEP                    Build-Own-Operate-Transfer (BOOT)       97 MW          Energy          71.18          Under construction

     Rongnichu Storage Hydro
                                      Build-Own-Operate-Transfer (BOOT)       24 MW          Energy          65.38          Under construction
     Power Plant
     Rangit-IV Hydro Power
                                      Build-Own-Operate-Transfer (BOOT)       96 MW          Energy          118.44         Under construction
     Plant

     Rangit - II Power Plant          Build-Own-Operate-Transfer (BOOT)       120 MW         Energy          41.25          Under construction

     Teesta -III hydro power
                                      Build-Own-Operate-Transfer (BOOT)       66 MW          Energy       Not available     Under construction
     project

     Teesta - VI power plant          Build-Own-Operate-Transfer (BOOT)       300 MW         Energy       Not available     Under construction

     Taramchu Hydro Power                                                                                                    Pre-construction
                                      Build-Own-Operate-Transfer (BOOT)       96 MW          Energy          24.90
     Plant                                                                                                                        stage
 Note: MW - Megawatt
 Source: Department of Economic Affairs, Government of India

22    SIKKIM                                                                                 For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – EDUCATION

      Sikkim has a literacy rate of 81.42 per cent; the male and female          Distance education is available for students via SMU and Indira
       literacy rates were 86.55 per cent and 75.61 per cent, respectively.        Gandhi National Open University (IGNOU).

      The Sikkim Manipal University (SMU), a partnership between the
                                                                                 Literacy rates (%)
       Government of Sikkim and Manipal Education and Medical Group
       (MEMG), provides technical, healthcare and science education. It is
                                                                                   Literacy rate                                       81.42
       rated as one of the top universities in the country.

      The proposal of establishing a state university by forming a cluster of     Male literacy                                       86.55
       different colleges, was also approved by RUSA (Rashtriya Uchhatar
       Shiksha Abhiyan), in 2015-16. Allocation of US$ 100.3 million was           Female literacy                                     75.61
       made for human resource development department in state budget
       2017-18.
                                                                                 Educational infrastructure (2015)
      Sikkim is the first state to partner with United Nation Educational and
       Scientific Organization (UNESCO) MGIEP (Mahatma Gandhi                      Primary schools                                      406
       Institution of Education for Peace and Sustainable Development) for
       implementation of Sustainable Development Goal (SDG) in Primary             Junior high schools                                  179
       Text Books.
                                                                                   Secondary & senior secondary
                                                                                                                                        182
      Sikkim has secured third rank in the category of Elementary                   schools
       Education in the country as per the Educational Development Index
                                                                                   Government colleges                                  18
       (EDI) released by the Ministry of Human Resource Development in
       2014. The EDI was measured based on four constituents of Access,
                                                                                   Central university                                    1
       Infrastructure, Teachers and Outcome.

      As per the state budget 2016-17, enrolment of students in LKG and           Private university                                    4
       UKG classes will be initiated in all government schools of the state
       during 2016-17.

 Source: NEDFI Databank;, Budget 2016-17, 2017-18

23      SIKKIM                                                                                          For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – HEALTH … (1/3)

       Sikkim has an impressive health infrastructure, one of the best in the                  Health infrastructure as of May 2018
        country. The state has witnessed declining critical health indicators
                                                                                                    Sub centres                                                    197
        such as disease prevalence, mortality rates, morbidity, etc. over the
        past years.                                                                                 Primary health centres                                          28

       Health tourism is being promoted in the state to utilise its medical                        Community health centres                                         2
        infrastructure and boost the economy. The state had 28 primary                              District hospitals                                               5
        health centres, 197 sub-centres, two community health centres and
        five district hospitals as of November 2017.                                                Sub district hospitals                                           1

       The Department of Health and Family Welfare is instrumental and
                                                                                                                                 Source: Ministry of Health & Family Welfare, NHRM
        responsible for implementation of various national programs in the
        areas of health and family welfare as well as prevention and control
        of communicable diseases in the state.
                                                                                                 Health indicators as (SRS-2016)
       During 2015-16, the state government initiated a new five bedded
                                                                                                    Crude Birth rate (per thousand persons)                              16.6
      dialysis unit at STNM Hospital, in order to help the patients suffering
      with kidney diseases. Moreover, the state also recorded an increase in
                                                                                                    Crude Death rate (per thousand persons)                              4.7
      growth of immunization coverage from 48% in 1998-99 to over 93%
      during 2015-16.                                                                               Infant mortality rate (per thousand live births)                     16
       Sir Thutob Namgyal Memorial (STNM) Hospital has introduced latest
      technology for Laparoscopic Machine in surgery department. Now
      onwards patients will be able to undertake medical treatment of various
      cases like hernia, gallbladder stone and appendix with advanced
      techniques and innovative methodology.

     Source: Central Bureau of Health Intelligence, Government of India, Sample Registration System (SRS) Bulletin, NHRM

24        SIKKIM                                                                                                         For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – HEALTH … (2/3)

      In order to provide proper healthcare facilities in the state through mobilisation and participation, the state government, in 2014 came up with a
       flagship programme namely; Chief Minister’s Annual and Total Health Checkup (CATCH). The programme’s first phase covering more than 95 per
       cent of total population has been completed.

      Another scheme of Mukhya Mantri Jeevan Raksha Khosh 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.

      As per budget 2017-18, the state government is constructing a multi-specialty hospital at Sokeythang with 85 per cent of its construction is
       completed and the remaining is expected to be completed by the end of 2017. Construction work for upgrading the 575 bedded hospital to 1,000
       beds, is also under process. With the completion of this hospital, good working conditions would be provided to doctors and better health care
       services would be extended to the people of the state.

      Budget allocation for Health Care, Human Services and Family Welfare sector in the state is estimated to be US$ 56.5 million during 2017-18.

      In March 2017, the Rural Management & Development Department (RM&DD) started a campaign, which will last for 7 days, under the title
       "Swachh Shakti Saptah" to focus on the active involvement of women in the Swachh Bharat Mission. Various events have been developed such
       as screening of film on women & swachhta, sports programmes for girls & women honouring women sanitation champions at district, block &
       gram panchayat level.

      Government of Sikkim would provide free health care services with various improvements in infrastructure and improvised provision of complete
       health services. Moreover, government is coming up with 1,000 bedded multi-specialty hospital.

 Source: Central Bureau of Health Intelligence, Government of India, State Budget 2016-17

25      SIKKIM                                                                                      For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – HEALTH … (3/3)

      As per the Budget 2018-19, Drug Testing Laboratory is being constructed at Chuwatar at a cost of Rs. 880 Lakh (US$ 1.37 million).

      As per the new Budget, Tuberculosis hospitals at Gyalshing and Mangan and Blood Bank at Mangan will be completed in FY2018-19.

      Construction of new district hospitals at Mangan at a cost of Rs. 20 crore (US$ 3.10 million) has been initiated.

      Sikkim government is also setting up Sowa Rigpa at National Institute of Tibetology, Deorali at a cost of Rs. 10.50 crore (US$ 1.63 million).

 Note: Conversion Rate = 64.45 as per slide 51
 Source: Central Bureau of Health Intelligence, Government of India, State Budget 2018-19

26      SIKKIM                                                                                        For updated information, please visit www.ibef.org
CULTURAL INFRASTRUCTURE

      There are 3 ethnic communities in Sikkim: Lepcha, Bhutia, Tibetan &                  Major parks and monastery in Sikkim
       Nepali. Buddhism & Hinduism are the two main religions followed in
       the state. It has nearly 200 monasteries, of which the most well
       known Buddhist circuits are the Pemayangste, Tashiding, Rumtek,                        Name                                                    Place
       Enchey, Phensang, Ralong, Phodang & Tolung.
      Important festivals in the state are Bumchu, Dasain, Losar, Losoong,                   Central Park                                           Namchi
       Maghe Sankranti, Namsoong, Pang-Labhsol, Saga Dawa, Sakewa,
       Sonam Lochar, Tamu Lochar, Tendong Lho Rum Faat, Tihar,                                Maney Chokerling Monastery                             Ravang
       Lhabab Duechen, Drupka Teshi & Trungkar Teschu.
      Sikkim has the steepest rise in altitude over the shortest distance; its               Library cum Museum                                      Namchi
       temperature varies from tropical & temperate in the southern districts
       to alpine & tundra in the northern peaks.                                              Pemayangtse Monastery                                  Pelling

      The state is richly endowed with rare & exotic flora & fauna, which
                                                                                              Enchey Monastery                                       Gangtok
       includes 4500 different flowering plants, 550 types of orchids, 36
       varieties of rhodendrons, 28 bamboo species, over 144 mammals,
                                                                                              Phodong Monastery                                      Gangtok
       552 species of birds & 600 different butterflies – making it a nature
       lover’s paradise.
                                                                                              Rumtek Monastery                                       Rumtek
      The total budget allocation for Cultural Affairs and Heritage
       Department is Rs. 40.20 crore (US$ 6.24 million) for 2018-19.                          Himalayan Zoological Park                              Gangtok
      The country’s toughest high altitude mountain biking competition
       ‘Sikkim Epic 17000 Gurudongmar Lake’ was organised on 28th and
       29th May 2017, by North District Administration in Coordination with
       Indian Army. The route will start from Lachen to Gurudongmar. About
       25 cyclists from all across the country participated for the inaugural
       race. The event is aimed at promoting adventure tourism in the state.

 Source: State Portal of Sikkim, Government of Sikkim, Urban Development and Housing Department, South Division, Namchi, state budget 2018-19

27      SIKKIM                                                                                                     For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE

      Brewing, distilling, tanning and watchmaking are the main industries 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 & Ranipool-Gangtok as industrial corridors with provision for giving land
       to investors on a lease basis.

      Sikkim is a leading north-eastern state in hydroelectric power development with 28 different projects identified under PPP mode.

      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 & floriculture, minor forest-based industries, animal husbandry & 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.

28      SIKKIM                                                                                          For updated information, please visit www.ibef.org
SMART CITIES

      The central government announced plans to develop Namchi and
       Gangtok as two of the 100 smart cities in India.

     Smart cities in Sikkim

      Cities                   Population              Literacy Rate
      Namchi                      12,190                   88.10%
      Gangtok                     100,286                  89.33%

      From the state of Sikkim, Gangtok has been included under AMRUT
       (Atal Mission for Rejuvenation and Urban Transformation).

      As per the state budget 2016-17, work on service level improvement
       plan under AMRUT is expected to be submitted to the Central
       Ministry during 2016-17.

                                                                                                   Gangtok

                                                                                     Namchi

29      SIKKIM                                                              For updated information, please visit www.ibef.org
KEY INDUSTRIES

      The Commerce & Industries Department of Sikkim is involved in                               Key industries in Sikkim
       promoting trade & industry in Sikkim. The Sikkim Industrial                                     Tourism                                                     Minerals
       Development & Investment Corporation Ltd (SIDICO) is the state-                                 Hydroelectric power                                         Handlooms and handicrafts
       level institution engaged in promoting, financing & developing the tiny                         Agriculture                                                 Sericulture
       & Small Scale Industries (SSI) sector in the state.                                                                                                    
                                                                                                       Tea                                                          Horticulture
      Ecotourism, handicrafts & handlooms, silk reeling & processing,                                 Floriculture                                                Electronics
       precision engineering, electronics, IT, medicinal plants, floriculture,                         Large cardamom                                              Pharmaceuticals
       tea, spices, honey & biotechnology are key areas identified by
                                                                                                       Agro-processing
       Sikkim. Being a potentially eco-fragile location, the people of Sikkim
       support the promotion of pollution-free industries. Sikkim has large
       opportunities for tourism, hospitality, horticulture, floriculture, organic                     Investment intentions in terms of IEMs filed, LOIs/DILs issued
       farming & infrastructure development due to a rich resource base &                                                         in Sikkim
       enormous untapped potential.
      The allocated budget for the industry & minerals sector in Sikkim is                                   200
       estimated to be US$ 9.46 million during 2016-17. Out of this total                                     180

                                                                                                                                                                                                                  189.8
       allocation, villages & small industries would be allocated US$ 5.97                                    160
       million & large industries would be allocated US$ 2.75 million. The                                    140

                                                                                                                                                                                                     147.8
       remaining would be allocated to non-ferrous mining & metallurgical                                     120

                                                                                                                            131.9

                                                                                                                                          120.6
       industries.                                                                                            100
                                                                                                               80
      The total allocated budget in the year 2018-19 for the Mines,

                                                                                                                                                                  87.6

                                                                                                                                                                                         85.8
                                                                                                               60
       Minerals and Geology sector is Rs. 6.34 crore (US$ 0.98 million).                                                                              32.3                   34.5
                                                                                                               40                                                                                            23
      The state government allocated Rs. 75.04 crore (US$ 11.64 million)                                              13            15           9          12          9          13          15
                                                                                                               20
       to the Commerce and Industries Department in 2018-19                                                     0

                                                                                                                        2010

                                                                                                                                      2011

                                                                                                                                                      2012

                                                                                                                                                              2013

                                                                                                                                                                             2014

                                                                                                                                                                                     2015

                                                                                                                                                                                                 2016

                                                                                                                                                                                                              2017
                                                                                                                                      Number of Investment Intentions
                                                                                                                                      Proposed Investments (US$ Million)

     Note: IEMs – Industrial Entrepreneur Memoranda, LOIs – Letters of Intent, DILs – Direct Industrial Licences
     Source: Department of Industrial Policy & Promotion, Government of India

30       SIKKIM                                                                                                                     For updated information, please visit www.ibef.org
KEY INDUSTRIES – FLORICULTURE

      Sikkim's geographical & 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.
      Sikkim is the natural home to more than 600 different types of orchids, over 100 primulas & rhododendrons. A number of cut flowers & bulbs are
       supplied by the farmers to areas in Delhi, Kolkata, Kalimpong, Uttaranchal & Bihar.
      The existing industry is at a nascent stage & has the potential to be developed & promoted towards an export-oriented business. The Sikkim
       government has announced a technical collaboration with floriculturists from the Netherlands & Thailand to develop the state’s potential in
       floriculture & market cut flowers from the state globally.
      Sikkim’s most important commercial flowers are Cymbidium Orchids, Gladiolus, Carnation, Gerbera, Asiatic, Oriental Lilies & Anthurium, among
       others, that can be grown for domestic & export markets.
      During 2014-15, floriculture exports from the state stood at US$ 62.52 thousand.
      A sum of US$5.36 million has been sanctioned by the Ministry of Agriculture & Farmers Welfare for implementation of Horticulture Mission for
       North East & Himalayan States (HMNEH) under MIDH programme in Sikkim, during 2016-17.
      During 2017-18, production of cut flowers & loose flowers in the state is expected to reach 0.09 thousand metric tonnes and 16.50 thousand metric
       tonnes, respectively.
      During the year 2017-18 total funds allocated under National Horticulture Mission For North Eastern Himalayan States for the promotion of
       horticulture were Rs 35,330 crores (US$ 5.45 billion) of which Sikkim has been allocated Rs 3,050 crores (US$ 470.86 million).
      In February 2017, the Government of India approved Pilot Revenue Insurance Scheme for protecting plantation crops growers from the risk of
       yield loss, pest attacks, & income decline because of fall in of prices. The scheme will be implement in eight states including Sikkim.
      As of March 2017, Ladakh has innovated a unique technique to access water throughout summer for farmers, by making small man made glaciers
       known as ice stupas. For the purpose, stream water is frozen vertically in shape of tall ice towers measuring 15 to 50 meters. These towers can
       be made near the villages wherever there is need of water. This technology has been introduced in Sikkim courtesy the state government
       facilitated under the United Nations Development Program (UNDP).

     Source: Indian Horticulture Database 2014-National Horticulture Board

31       SIKKIM                                                                                    For updated information, please visit www.ibef.org
KEY INDUSTRIES – MEDICINAL PLANTS AND
                     BAMBOO.. (1/2)

      Sikkim houses 11 oak varieties, 28 bamboo varieties, 16 conifer                         Important medicinal plants and their use
       species, 362 types of ferns and ferns allies, 9 tree ferns, and over
       424 medicinal plants and herbs                                                            Name of the plant                       Medicinal value
      The agro-climatic conditions in the state support a wide variety of
                                                                                                 Nardostachys grandiflora           Tonic, antispasmodic, diuretic,
       exotic flora and fauna that have utility in the medicine sector.                          (Jatamasi)                                     laxative
      Around 22 different medicinal and aromatic plants are cultivated
       under contract farming for the National Medicinal Plants Board.                           Aconites                              Rheumatism and fever
      The state has identified medicinal plants and bamboo as among the
                                                                                                 Artemisia vulgaris                           Antiseptic
       priority sectors for investment.
      With the enhanced focus on rural connectivity under MGNREGA, the                                                             Anti-venom and anti-asthmatic
                                                                                                 Piper longum
       Government of India is targeting to provide an average wage of 70                                                                       value
       days and employment to 65,000 households. Out of this investment,
       a sizeable part will be utilized in Bamboo and Medicinal Plants                           Picrorhiza kurrooa                   Effective against malaria
       (Amla) plantations, construction of water tanks, Chief Minister’s Rural
       Housing Mission and horticulture plantations.
      Sikkim has 28 varieties of bamboo, offering potential for developing
       the handicrafts, construction, medicine, packaging and food
       processing industries.

     Source: Department of Ayurveda and the Ministry of Health and Family Welfare, Government of India

32       SIKKIM                                                                                                   For updated information, please visit www.ibef.org
KEY INDUSTRIES – MEDICINAL PLANTS AND
                    BAMBOO.. (2/2)

      National Mission of Medicinal Plants, National Medicinal Plants                        Funds allocated and received under various schemes:
       Board and National AYUSH Mission are few of the centrally
       sponsored schemes under which the state was allocated funds.                           National Mission Of Medicinal Plants (NMMP) (centrally
                                                                                              sponsored scheme)
      50 bedded Ayurvedic hospitals will be completed in the coming fiscal
       year 2018-19 at Kyonsha Gyalshing at a cost of Rs. 10.50 crore                                           Funds allocated (US$    Funds released (US$
                                                                                               Year
       (US$ 1.63 million).                                                                                          thousand)               thousand)
                                                                                               2014-15                   130                      130
                                                                                               2015-16                    -                      46.94

                                                                                              National Medicinal Plants Board (NMPB) (centrally sponsored
                                                                                              scheme)
                                                                                                                Funds allocated (US$    Funds released (US$
                                                                                               Year
                                                                                                                    thousand)               thousand)
                                                                                               2014-15                  1,010                    1,010
                                                                                               2015-16                     -                     462.21

                                                                                              National AYUSH Mission (centrally sponsored scheme)

                                                                                               Year                    Grant-in-aid released (US$ million)
                                                                                               2014-15                                  0.11
                                                                                               2015-16                                  0.93
                                                                                               2016-17                                  1.30
                                                                                               2017-18                                  0.28
     Note: Conversion Rate = 64.45 as per slide 51
     Source: Ministry Of Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopath (AYUSH)

33      SIKKIM                                                                                                For updated information, please visit www.ibef.org
KEY INDUSTRIES – AGRICULTURE, HORTICULTURE
                     AND FOOD PROCESSING

      Agriculture is vital to the progress of Sikkim as more than 64 per cent                    In April 2017, the state government and Indian Farmers Fertilizers
       of the population depends on it for their livelihoods. The Sikkim                           Cooperative (IFFCO) formed a joint venture named as Sikkim IFFCO
       AGRISNET is an internet-based agriculture information centre to                             Organics Ltd. (SIFFCO). The venture aims to promote organic
       promote scientific agricultural methods and convert research into
                                                                                                   fertilizer of Sikkim state worldwide via IFFCO’s new digital
       practice in the agricultural sector.
                                                                                                   cooperative platform.
      Sikkim has a suitable climate for agricultural and horticultural
       products. It supports multiple crops; viz., rice, wheat, maize, millet,                                              Production of vegetables (in ‘000 MT)
       barley, urad, pea, soya bean, mustard and large cardamom. The
       surveyed arable land in Sikkim is 109,000 ha, of which only 9.5% is                               200.0
       used; this provides a vast untapped potential for development. The

                                                                                                                                                                                                                                                               190.7
                                                                                                         150.0

                                                                                                                                                                                                                                                     155.7
       state government is also laying emphasis on improving organic

                                                                                                                                                147.7

                                                                                                                                                                                                                 134.5

                                                                                                                                                                                                                              134.4

                                                                                                                                                                                                                                          134.4
                                                                                                         100.0

                                                                                                                                                                                                   132.5
                                                                                                                                                                                    127.7
                                                                                                                                                                    121.0
       farming in the state. During 2015-16, the state government

                                                                                                                            98.0
                                                                                                           50.0
       recognised the existing MPCS in the state to promote and enhance
                                                                                                            0.0
       organic farming in the state. As a result of these initiatives, the state

                                                                                                                            2008-09

                                                                                                                                                2009-10

                                                                                                                                                                    2010-11

                                                                                                                                                                                    2011-12

                                                                                                                                                                                                   2012-13

                                                                                                                                                                                                                 2013-14

                                                                                                                                                                                                                                          2015-16

                                                                                                                                                                                                                                                     2016-17

                                                                                                                                                                                                                                                               2017-18*
                                                                                                                                                                                                                              2014-15
       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.
      A ginger processing unit has been set up at Birdang in west Sikkim                                                             Production of fruits (in ‘000 MT)
       for processing and value addition of organic ginger for marketing.
       Production of vegetables and fruits in Sikkim increased at a CAGR of
       4.62 per cent and 3.3 per cent, respectively, between 2008-09 and                                 30
                                                                                                         25
       2015-16.

                                                                                                                                                          25.8
                                                                                                         20

                                                                                                                                                                                                                                                    24.8
                                                                                                                                                                                                             24.1
                                                                                                                                                                                              24

                                                                                                                                                                                                                                                               24.01
                                                                                                                                                                              22.5
                                                                                                         15

                                                                                                                                                                                                                           19.7

                                                                                                                                                                                                                                        19.7
                                                                                                                                      18.5
      There are large areas of fallow land available, having the potential to

                                                                                                                  15.7
                                                                                                         10
       be converted into productive farms for cash crops. Egg production in                               5
                                                                                                          0
       the state stood at 101.57 lakh units in 2015-16 and 980 lakh units in                                      2008-09

                                                                                                                                      2009-10

                                                                                                                                                          2010-11

                                                                                                                                                                              2011-12

                                                                                                                                                                                              2012-13

                                                                                                                                                                                                             2013-14

                                                                                                                                                                                                                                        2015-16

                                                                                                                                                                                                                                                    2016-17

                                                                                                                                                                                                                                                               2017-18*
                                                                                                                                                                                                                           2014-15
       2016-17. Meat production in the state was recorded at 5.84 thousand
       tonnes in 2015-16. Milk production in the state increased from 66.74
       thousand tonnes in 2015-16 to 127 thousand MT in 2016-17.
     Note: MT: Metric Tonnes, 2017-18* - As per 1st advance estimates
     Source: Indian Horticulture Database 2014-National Horticulture Board, Department of Agriculture Cooperation and Farmers Welfare

34       SIKKIM                                                                                                                         For updated information, please visit www.ibef.org
KEY INDUSTRIES – HYDROPOWER … (1/2)

      The 1200 MW Teesta Stage III Hydro Electric Project was commissioned in February 2017.

      In February 2017, NHPC signed a power purchase agreement (PPA) for Teesta V Hydro Electric power project in Sikkim, for a tenure of 35 years.

      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.

      According to Central Electricity Authority, Sikkim had 823 MW of installed hydro-power capacity as of March 2018.

      The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries. The Teesta descends from an elevation of about 3,600 m to
       about 300 m over a distance of 175 km. It can be harnessed for power generation in six stages.

      The Jorethang Loop Hydro Electric Project with total capacity of 96 MW, commenced its commercial operation during 2015-16.

      The Power Grid Corporation of India is working over a comprehensive scheme to boost power transmission and distribution system in Sikkim
       which will have a cost of Rs 4,755 crores (US$ 734.08 million)

      Furthermore, the Government of Sikkim is targeting to deliver the uninterrupted supply of power across various connected as well as unconnected
       households under the umbrella of “24X7 Power for All” plan, in the next few years.

      In November 2017, Tashiding Hydropower station was commissioned, adding 97 MW to the installed power capacity of the state.
      State revenue from sale of power has increased to Rs. 169 crore (US$ 25.19 million) in year 2016-17 from Rs. 3.87 crore (US$ 0.58 million) in
       year 1994

     Note: Conversion Rate = 67.09 as per slide 51
     Source: Central Electricity Authority, Energy & Power Department- Government of Sikkim

35       SIKKIM                                                                                     For updated information, please visit www.ibef.org
KEY INDUSTRIES – HYDROPOWER … (2/2)

      The waterfalls of Sikkim that fall from high altitudes and are                            Hydroelectric power projects under construction
       perennial in nature are conducive for setting up hydroelectric power
       plants. For replacing the streetlights with LED bulbs, the state                            Developer                                       Installed capacity (MW)
       government is working on a scheme so as to improve the quality and
                                                                                                     Teesta Urja Ltd (Phase 2 and 6)                         1,200
       minimise cost through energy saving.
                                                                                                     Lanco                                                       500
      NHPC is setting up a hydro-electric power plant (including two
       operating projects) in Sikkim, with a generation capacity of 5,295                            Dans Energy                                                 96
       MW. A total of 11 hydro electric power projects with a capacity of                            Gati Infrastructures1                                       150
       2,455 MW (of which the private sector contributed 1,935 MW) have
                                                                                                     Shiga Energy                                                97
       been identified for benefits during the 12th Five Year Plan in the
       state.                                                                                        Sneha Kinetic Energy                                        96

      The Rangit-II project with capacity of 66 MW was commissioned in                              Sikkim Hydro Ventures Ltd.                                  66
       2016-17 and the Teesta stage 3 hydropower project was
       commissioned in February 2017.                                                            Prospective hydroelectric power projects
      With 1200 MW Teesta Stage III Hydro Electric Project, the installed                         Developer                                     Installed capacity (MW)
       capacity of Sikkim has reached 2206.07 MW which was around 30
       MW in 1994.                                                                                   Himalayan Green Energy                                280
                                                                                                     Him Urja Pvt Ltd                                      330
                                                                                                     NHPC                                                  520
                                                                                                     Himagiri Hydro                                        300
                                                                                                     Gati Infrastructure                                    71
                                                                                                     Lachung Power Pvt Ltd                                  99
                                                                                                     TT Energy                                              70
     Note: 1Includes 2 projects Sada-Mangder HEP& Bhasmey HEP, NHPC: National Hydroelectric Power Corporation
     Source: Hydro Development Plan for 12th Five Year Plan; Central Electricity Authority; Livemint, September 2011; Projects Monitor, MDONER

36       SIKKIM                                                                                                         For updated information, please visit www.ibef.org
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