Sikkim - August 2013

7/27/2019 Sikkim - August 2013

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Source: Sikkim Annual Plan Discussion 2012-13; International Flower Show, Sikkim 2013;

Economic Times, November 2012; Aranca Research

Strong floriculturesector

Sikkim is home to around 5,000 species of flowering plants, 515 rare orchids, 60 primulaspecies and 36 rhododendron species. This makes it one of the leading states in theNortheast region in terms of production and supply of cut flowers to mainland consumermarkets.

Strong potential ofmedicinal plants

industry

Of the 6,000 medicinal plants in India, 420 plants (including the famous Artemisia vulgaristhat is used as an antiseptic) are grown in Sikkim. Moreover, it is all set to be recognisedand certified by the Government of India under National Medicinal Plant Board (NMPB)proposed under the 12th Five Year Plan.

Largest producer oflarge cardamom

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

Presence of worlds

third highest peak Sikkim has mighty snow-capped peaks including Kanchenjunga, the worlds third highest

peak, which attracts a large number of tourists from across the globe.


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Source: Planning Commission Databook 2012-13, www.sikkim.gov.in

GSDP: Gross State Domestic Product

The engineering sector is delicensed;100 per cent FDI is allowed in thesector

Due to policy support, there wascumulative FDI of USD14.0 billion intothe sector over April 2000 February2012, making up 8.6 per cent of totalFDI into the country in that period

Growing demand

High economic growth andimproving infrastructure

Sikkims GSDP expanded at acompound annual growth rate(CAGR) of 25.2 per cent between2004-05 and 2011-12.

Large production of cardamom andflowers has opened up immensepossibilities for the state economy.

Rail and air connectivity as well asoptical-fibre networks are beingdeveloped in the state.

Conducive agro-climaticconditions

Sikkim has favourable agro-climaticconditions, which support agriculture,horticulture and forestry; there ispotential for development in relatedareas.

The state has abundant naturalresources, which offer significantavenues for investment.

Policy and institutionalsupport

The state follows the North EastIndustrial Investment Promotion Policy,2007, which provides several incentivesand concessions for investment.

Institutional support is provided throughvarious central and state governmentagencies viz., North East Council,Ministry of Development of NorthEastern Region and Commerce andIndustries Department.

Rich labour pool

Sikkim has a high literacy rate of 82.2per cent.

The state has a skilled and educatedlabour force.

With the establishment of SikkimManipal University and the SikkimUniversity, the quality and quantity ofemployable graduates in the state hassteadily improved.

2012-13

Hydropower

generationcapacity:

174.3 MW

Potential

Estimatedhydropower

potential:8,000 MW

Advantage:Sikkim


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Sikkim is surrounded by vast stretches of Tibetan Plateausin the north, the Chumbi Valley of Tibet and the Kingdom ofBhutan in the east, the Kingdom of Nepal in the west andDarjeeling district of West Bengal in the south.

Nepali, Bhutia, Lepcha, Limboo, Magar, Rai, Gurung,Sherpa, Tamang, Newari and Sunuwar (Mukhia) are thecommonly spoken languages. Hindi and English are alsowidely spoken.

Gyalshing, Namchi, Mangan, Jorethang, Singtam, Rangpo,Pakyong, Rhenock, Meli, Chungthang and Soreng aresome of the key cities and towns in the state.

Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, fivehot springs, and eight mountain passes making it an idealtourist location. The Teesta and the Rangeet are the two

major rivers with nearly hundred tributaries.

Sources: Planning Commission Databook 2013

*Provisional Data Census 2011

Parameters Sikkim

Capital Gangtok

Geographical area (sq km) 7,096

Administrative districts (No) 4

Population density (persons per sq km)* 86

Total population (million)* 0.61

Male population (million)* 0.32

Female population (million)* 0.29

Sex ratio (females per 1,000 males)* 889

Literacy rate (%)* 82.2


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Parameter Sikkim All-States Source

Economy 2011-12 2011-12 2012-13

GSDP as a percentage of all states GSDP 0.10 100 100Planning Commission Databook,

current prices

Average GSDP growth rate (%)* 25.3 15.9 15.6Planning Commission Databook,

2004-05 to 2011-12, current prices

Per capita GSDP (US$) 2844.4 1,434.8 1,414.2Planning Commission Databook,

current prices

Physical Infrastructure

Installed power capacity (MW) 305.5 225,133.1 Central Electricity Authority, as of May 2013

Wireless subscribers (No) 41,159,859^ 867,803,583Telecom Regulatory Authority of India, as of

March 2013

Broadband subscribers (No) 4,316 15,050,000**Ministry of Communications & Information

Technology, as of December 2012

National Highway length (km) 149 79,116Ministry of Road Transport & Highways,

as of March 2013

Social Indicators

Literacy rate (%) 87.4 74.0 Provisional data Census 2011

Birth rate (per 1,000 population) 13.3 21.8 SRS Bulletin (www.censusindia.gov.in), 2012

SRS: Sample Registration System, *Calculated in Indian rupee terms,

^West Bengal (Including Andaman & Nicobar, Sikkim and Excluding Kolkata), **As of March 2013


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Parameter Sikkim All-States Source

Investment

FDI equity inflows (US$ billion) 2.3* 193.3Department of Industrial Policy & Promotion,

April 2000 to March 2013

Outstanding investments (US$ billion) 20.5 10,499.2 CMIE (2012-13)

Industrial Infrastructure

PPP projects (No) 31 881 www.pppindiadatabase.com

Note: PPP: Public-Private Partnership*Including West Bengal and Andaman & Nicobar Islands


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At current prices, Sikkims total gross state domesticproduct (GSDP) was US$ 1.8 billion in 2011-12.

GSDP expanded at a CAGR of 25.2 per cent* between2004-05 and 2011-12.

Source:Planning Commission Databook, 2012-13, Current pricesCAGR: Compound Annual Growth Rate

*In Indian rupee terms

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

0.4 0.50.5

0.6 0.7

1.3

1.6

1.8

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

CAGR25.2%*


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The states per capita GSDP was US$ 2,844.4 in 2011-12compared to US$ 683.4 during 2004-05.

Per capita GSDP increased at a CAGR of 23.7 per cent*between 2004-05 and 2011-12.

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

683

786 8211,061 1,182

2,149

2,5752,844

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

CAGR23.7%*

Source:Planning Commission Databook, 2012-13, current pricesCAGR: Compound Annual Growth Rate



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594 683711 906

1,023

1,914

2,2932,533

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

Sikkims per capita NSDP was US$ 2,533.1 in 2011-12compared to US$ 593.8 during 2004-05.

Per capita NSDP increased at CAGR of 24.2 per cent*between 2004-05 and 2011-12.

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

CAGR24.2%*

Source:Planning Commission Databook, 2012-13, current pricesCAGR: Compound Annual Growth Rate



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At a CAGR of 37.3 per cent, the secondary sector has beenthe fastest growing among the three sectors from 2004-05to 2011-12. It was driven by manufacturing, constructionand electricity, gas & water supply.

In 2011-12, the secondary sector contributed 54.8 per centto the states GSDP at current prices. It was followed by the

tertiary sector at 37.0 per cent and primary sector at 8.2 percent.

The tertiary sector grew at a CAGR of 19.0 per centbetween 2004-05 and 2011-12. The growth has been drivenby trade, hotels, real estate, finance, insurance, transport,communications and other services.

The primary sector grew at a CAGR of 11.3 per cent

between 2004-05 and 2011-12.

Source:CMIE

CAGR: Compound Annual Growth Rate*In Indian rupee terms

Percentage distribution of GSDP

18.7%8.2%

28.7% 54.8%

52.6%37.0%

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR*

11.3%

19.0%

37.3%


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Source:Annual Progress Report 2010-11; Sikkim Agrisnet; Spices BoardHa: hectare; * As of 2011-2012

CropAnnual production in 2010-11

(000 metric tonnes)

Maize 66.2

Rice 21

Small millets 2.9

Oil-seeds 8

Pulses 6

Buck wheat 4.1

Large cardamom 3.2*

The agriculture sector contributed around 8.1 per cent toSikkims GSDP in 2011-12.

Maize, rice, orange, oil seeds, pulses, wheat, tea andspices, cereals, millet are the key agricultural products ofSikkim. During 2010-11, total food grain production in thestate was 103,410 tonnes.

Sikkim is one of the top producers of large cardamom,contributing over 85.0 per cent to Indias total production.

Sikkim aims to make the states farming fully organic by2015. Organic farming demonstrations have been made inover 3,000 hectares (ha) of land, and bio-fertilisers havebeen introduced in 5,340 ha. A bio-fertiliser manufacturingunit has also been set up.

The Sikkim AGRISNET is an internet-based agricultureinformation centre to promote scientific agricultural methodsand convert research into practice in the agricultural sector.

Annual production of key crops


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FDI inflows reached US$ 2.3 billion* from April 2000 toMarch 2013.

In 2012-13, the states outstanding investments reachedUS$ 20.5 billion.

The electricity sector accounted for 91.8 per cent of total

outstanding investments, followed by services (7.1 per cent)and manufacturing (1.1 per cent).

Break up of outstanding investments by sector(2012-13)

1.1%

91.8%

7.1%

Manufacturing

Electricity

Services

Source: CMIE 2012-13Department of Industrial Policy and Promotion

*Including West Bengal and Andaman & Nicobar Islands


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Sikkim has a total road length of 2,947.9 km. The state isconnected to West Bengal and the rest of India throughNational Highway (NH)-31A.

The state Public Works Department (PWD) and the BorderRoads Organisation (BRO) maintain the roads. The SikkimNationalised Transport (SNT) operates 114 buses (covering

43 routes), 64 trucks and 33 tankers across the state.

Source: Public Works Roads and Bridges DepartmentGovernment of Sikkim, mhupa.gov.in

Ministry of Road Transport & Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 1,871.5

Border roads (Including NH) 873.4


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Source: http://sikkim-roadsandbridges.gov.in/vision.pdfPWD: Public Works Department; BRO: Border Roads Organisation; MDR:

Major District Roads, SH: State Highway, ODR: Other District Roads

The state government has proposed a vision for thedevelopment of roads and bridges until 2020.

Some of the objectives are:

To provide safe, comfortable and stable roads, withthe capacity to handle high loading

All places of tourist or economic importance to beconnected with major district standard roads

All national highways to be four-laned

All state highways to be double-laned

Physical targets for different activities (in kms)

Type of work 2010-15 2015-20

Other district roadsconnectivity

180 233

Upgradation from

intermediate lane to4 Lane roads 20 -

Upgradation from single lane to 2 lane (SH)

a. PWD 32 103

b. BRO 68 -

Upgradation from single lane to intermediate lane (MDR)

a. PWD 200 200

b. BRO 190 201

Improvement of ODR 180 240

Replacement ofbridges (No)

9 8


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Indian Railway Construction Company has started theconstruction of rail connectivity between Savor andRangoon.

Total length of rail track between Savor and Rangoonwould be 52.7 km.

The proposal of Rangpo-Gangtok rail connectivity hasbeen sent to the Planning Commission.

Construction of an airport in Pakyong would be completedby the end of December 2013. Helicopter services areavailable from Bagdogra (West Bengal) to Gangtok.

Status of rail project

Cost US$ 622.4 million

Outlay for 2012-13 US$ 7 million

Overall progress 0.1 percent

Target of completion December 2015

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


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As of May 2013, Sikkim had a total installed powergeneration capacity of 305.5 MW. It consisted of 149.4 MWunder central utilities, 99.0 MW under private utilities and57.1 MW under state utilities.

Thermal power contributed 79.1 MW to total installed powergeneration capacity, while hydropower and renewable

power contributed 174.3 MW and 52.1 MW respectively.

About 28 hydroelectric power plants (HEPs) are being setup under the public-private partnership (PPP) mode.

Sikkim has a peak hydroelectric capacity of 8,000 MW witha firm base of 3,000 MW; providing a huge potential fordevelopment.

Some power projects, such as Teesta Stage III Hydel Powerhaving a capacity of 1200 MW and Teesta VI Hydro Powerwith a capacity of 510 MW; are scheduled for completion inthe next 36 months.

During 2013-14, the state would commission the 99 MWChuzachen hydro electric power project, which is slated tofetch about US$ 9.3 million on an annual basis.

Annual turnover from the sale of power is estimated at US$165.7 million by the end of the 12th Five Year Plan.

Source:Central Electricity Authority, April 2013,Sikkim Budget 2013-14, CMIE,

* As of May 2013, MW: Mega watt

Installed power capacity (MW)

193.1 195.5 201.4206.4

305.5 305.5

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14*


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Telecom infrastructure (March 2013)

Wireless subscribers 41,159,859^

Wire-line subscribers 548,248^

Broadband subscribers 4,316*

BSNL telephone connections 542,345^

Telephone exchanges 47*

Post offices 209**

Sources: Telecom Regulatory Authority of India; India Post;Department of Telecommunications, Annual Report 2012-13

^West Bengal (including Andaman & Nicobar, Sikkim and excluding Kolkata)*As of December 2012, **As of January 2013

Sikkim is among the states with the highest tele-density inthe country.

As of December 2011, the state had 47 telephoneexchanges with 542,345^ Bharat Sanchar Nigam Limited(BSNL) telephone connections.

Virtual private network (VPN) and 3G-services are availablein the state.

Forty five common service centres have been constructedacross the state. The centres provide an internet-basedinterface for implementing various government programmesand schemes.

Postal services are available through India Post and other

private courier services.

As of January 2013, the state had 209 post offices.

Major telecom operators in SikkimBharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources: Telecom Regulatory Authority of India


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Name of worksCost

(US$ million)

Integrated housing and slum

development of Old SlaughterHouse Gangtok (Phase 1) 0.6

Integrated housing and slumdevelopment of Old SlaughterHouse Rangpo

4.6

Integrated housing and slumdevelopment of Old SlaughterHouse Gangtok (Phase II)

0.9

Under the Jawaharlal Nehru National Urban RenewalMission (JNNURM), the rehabilitation of sewerage systemsof Gangtok is being undertaken at a cost of US$ 5.9 million.Water treatment and distribution system upgradation arealso being undertaken at a cost of US$ 15.3 million.

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT), US$ 8.7 million hasbeen allocated for development of water supply systemsand sewerage in Mangan, Namchi, Jorethang, Melli andRangpo.

The Sikkim Water Security & Public Health EngineeringDepartment (WS & PHED) provides water supply toGangtok, six major notified towns, 41 other urban towns and92 notified rural marketing centres. Gangtok has arequirement of 30 million litres per day and the WS & PHEDhas a storage and distribution capacity of 45.5 million litres..

The Union Ministry of Science and Technology hassanctioned a US$ 0.9 million biotechnology park atPakyong in June 2012. The park would have all facilitiesincluding a research centre at the regional level for North-east states.

Ongoing JNNURM works in Sikkim

Sources: JNNURM, Ministry of Urban Development, Government of India,Building Material and Technology Promotion Council,

Ministry of Development of North Eastern Region,Ministry of Science and Technology


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Project Name Sector PPP TypeProject Cost(US$ million)

Stage

Bermelee Khola HEP Energy BOOT 4.7 Construction

Bhasmey Hydro Power Plant Energy BOOT 32.1 Construction

Chujachen Hydro Power Plant Energy BOT 98.8 Construction

Dikchu Hydro Power Plant Energy BOOT 110.7 Construction

Hee Khola HEP Power Plant Energy BOOT 5.3 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 22.1 EOI

Jorathang Loop Power Project Energy BOOT 59.8 Construction

Kalez Khola HEP Power Plant Energy BOOT 10.6 Construction

Kissim Khola HEP Power Plant Energy - 3.3 Construction

Panan Hydro Power Project Energy - 199.3 Construction

Rangit - II Power Plant Energy BOOT 59.24 Construction

Source: pppindiadatabase.comBOOT: Build-Own-Operate-Transfer; BOT: Build-Operate-Transfer;

EOI: Expression of Interest; IPP: Independent Power Producers


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Project Name Sector PPP TypeProject Cost(US$ million)

Stage

Rangit-IV Hydro Power Plant Energy BOOT 161.7 Construction

Rongnichu Stroage Hydro Power Plant Energy - 94.8 Construction

Rorathang Power Plant Energy BOOT 33.2 Construction

Talem HEP Power Plant Energy BOOT 151.5 Construction

Taramchu Hydro Power Plant Energy BOOT 36.1 Under bidding

Teesta - VI Power Plant Energy BOOT 664.3 Construction

Teesta -1 Hydro Power Plant Energy BOOT 267.3 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 1,306.5 Construction

Upper Rimbi HEP Energy BOOT 13.1 Construction

Source: pppindiadatabase.comBOOT: Build-Own-Operate-Transfer;

HEP: Hydroelectric Power Plant


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Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 82.2 per cent; the male andfemale literacy rates were 87.3 per cent and 76.4 per cent,respectively.

Sikkim has become the first state in India to allocate 20 percent of its budget for 2012-13 to the education sector.

The Sikkim Manipal University (SMU), a partnershipbetween the Government of Sikkim and Manipal Educationand Medical Group (MEMG), provides technical, healthcareand science education. It is rated as one of the topuniversities in the country.

Distance education is available for students via SMU andIndira Gandhi National Open University (IGNOU).

The state plans to launch Sikkim Human ResourceDevelopment Mission 2013, Sikkim Youth Empowermentand Self Reliant Mission 2013, and Sikkim Gram SwarajAbhiyan in the current year to enhance the quality ofeducation.

Source: Planning Commission Databook 2013; HumanResource Development Department, Government of Sikkim;

University Grants Commission


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Primary education statistics (%)

Gross enrollment ratio (2010-11)Class I-V: 161.6

Class VI-VIII: 78.8

Dropout ratio ( 2009-10)Class I-V: 18.6

Class I-X: 80.7

Source: Planning Commission Databook, 2013

Literacy rates (%)

Literacy rate 82.2

Male literacy 87.3

Female literacy 76.4

Source: Census 2011 (provisional data)


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Sources: Ministry of Health & Family Welfare, Government of Sikkim;NEDFi Databank; www.sikkimhealth.gov.in; *As of May 2010

Health indicators (2011)

Population served per government hospital 18,424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 17.6

Death rate (Per thousand persons) 5.6

Infant mortality rate* 26

Sikkim has an impressive health infrastructure, one of thebest in the country.

The state fares better than the national average in almost allhealth indicators.

Health tourism is being promoted in the state to utilise its

medical infrastructure and boost the economy.

The state had 24 primary health centres, 147 sub-centres,four community health centres, four district hospitals and 33government hospitals as of March 2011.

The Department of Health and Family Welfare isinstrumental and responsible for implementation of variousnational programs in the areas of health and family welfare

as well as prevention and control of communicablediseases in the state.

Health infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNMHospital, Gangtok)

1*

District Tuberculosis Centre 1*

Government hospitals 33

Sources: Central Bureau of Health Intelligence, Government of India,Sample Registration System (SRS) Bulletin 2012 (www.censusindia.gov.in)

*Per thousand live births, ^As of January 2012


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There are three ethnic communities in Sikkim: Lepcha,Bhutia and Nepali. Buddhism and Hinduism are the twomain religions followed in the state. It has nearly 200monasteries, of which the most well known Buddhist circuitsare the Pemayangste, Tashiding, Rumtek, Enchey,Phensang, Ralong, Phodang and Tolung.

Important festivals in the state are Bumchu, Dasain, Losar,Losoong, Maghe Sankranti, Namsoong, Pang-Labhsol,Saga Dawa, Sakewa, Sonam Lochar, Tamu Lochar,Tendong Lho Rum Faat, Tihar and Trungkar Teschu.

Sikkim has the steepest rise in altitude over the shortestdistance; its temperature varies from tropical and temperatein the southern districts to alpine and tundra in the northernpeaks.

The state is richly endowed with rare and exotic flora andfauna, which includes 4,500 different flowering plants, 550types of orchids, 36 varieties of rhodendrons, 28 bamboospecies, over 144 mammals, 550 species of birds and 600different butterflies making it a nature lovers paradise.

Major parks and monastery in Sikkim

Name Place

Central Park Namchi

Maney Chokerling Monastery Ravang

Library cum museum Namchi

Pemayangtse Monastery Pelling

Enchey Monastery Gangtok

Phodong Monastery Gangtok

Sources: State Portal of Sikkim, Government of Sikkim,Urban Development and Housing Department,

South Division, Namchi


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Sikkim has identified Rangpo-Gangtok, Melli-Jorethang, Jorethang-Rishi and Ranipool-Gangtok as industrial corridors withprovision 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 PPPmode.

The units that are engaged in the manufacturing sector are mainly dealing with pharmaceuticals, chemicals, liquors, foam

mattresses, food products, iron rods, etc.

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

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


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The Commerce and Industries Department of Sikkim isinvolved in promoting trade and industry in Sikkim.

The Sikkim Industrial Development & InvestmentCorporation Limited (SIDICO) is the state-level institutionengaged in promoting, financing and developing the tiny andsmall scale industries (SSI) sector in the state.

Ecotourism, handicrafts and handlooms, silk reeling andprocessing, precision engineering, electronics, IT, medicinalplants, floriculture, tea, spices, honey and biotechnology arekey areas identified by Sikkim.

Being a potentially eco-fragile location, the people of Sikkimsupport the promotion of pollution-free industries.

Sikkim has large opportunities for tourism, hospitality,horticulture, floriculture, organic farming and infrastructuredevelopment due to a rich resource base and enormousuntapped potential.

The Sikkim Business Summit was organised by the state inMay, 2013, to showcase investment opportunities in Sikkim.

Key industries in Sikkim

Tourism

Agriculture

Floriculture

Agro-processing

Handlooms and handicrafts

Hydroelectric power

Tea

Large cardamom

Minerals

Sericulture

Horticulture

Electronics

Pharmaceuticals


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Source: International Flower Show Sikkim 2013;National Horticulture Board Report 2011-12; *First advanced estimates

CAGR: Compound Annual Growth Rate

Sikkim is home to around 5,000 species of flowering plants,515 rare orchids, 60 primula species and 36 rhododendronspecies, presenting avenues for investment in floriculture.

The existing industry is at a nascent stage and has thepotential to be developed and promoted towards an export-oriented business.

The Sikkim government has announced a technicalcollaboration with floriculturists from the Netherlands andThailand to develop the states potential in floriculture andmarket cut flowers from the state globally.

Sikkims most important commercial flowers are CymbidiumOrchids, Gladiolus, Carnation, Gerbera, Asiatic and orientalLilies, and Anthurium, among others, that can be grown for

domestic and export markets.

The Government of Sikkim organised the 2nd InternationalFlower Show in February 2013, aimed at promoting thefloriculture industry in the state.

Cut flower production increased at a CAGR of 37.0 per centbetween 2008-09 and 2012-13.

Production of cut flowers (in million units)

6.6

20.0

23.0

21.0

23.3

2008-09 2009-10 2010-11 2011-12 2012-13*

CAGR37.0%


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

The agro-climatic conditions in the state support a widevariety of exotic flora and fauna that have utility in themedicine sector.

Around 22 different medicinal and aromatic plants arecultivated under contract farming for the National MedicinalPlants Board.

The state is rich in biodiversity and over 420 species ofmedicinal plants and herbs are found throughout the state.

The state has identified medicinal plants and bamboo asamong the priority sectors for investment.

Sikkim has 28 varieties of bamboo, offering potential fordeveloping the handicrafts, construction, medicine,

packaging and food processing industries.

Important medicinal plants and their medical use

Name of the plant Medicinal value

Nardostachys grandiflora(Jatamasi)

Tonic, antispasmodic,diuretic, laxative

Aconites Rheumatism and fever

Artemisia vulgaris Antiseptic

Piper LongumAnti-venom and anti-asthmatic value

Picrorhiza kurrooa Effective against malaria


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Agriculture is vital to the progress of Sikkim as more than 64per cent of the population depends on it for their livelihoods.

The Sikkim AGRISNET is an internet-based agricultureinformation centre to promote scientific agricultural methodsand convert research into practice in the agricultural sector.

Sikkim has a suitable climate for agricultural and horticulturalproducts. It supports multiple crops; viz., rice, wheat, maize,millet, barley, urad, pea, soya bean, mustard and largecardamom.

The surveyed arable land in Sikkim is 109,000 ha, of whichonly 9.5 per cent is used; this provides a vast untappedpotential for development. The Sikkim government isworking on an ambitious plan to achieve 100 per cent

organic farming by 2015.

A ginger processing unit has been set up at Birdang in westSikkim for processing and value addition of organic gingerfor marketing.

Production of vegetables and fruits increased at a CAGR of9.9 per cent and 11.2 per cent, respectively, between 2008-09 and 2012-13. Source: National Horticulture Board

*First advanced estimates; MT: Metric tonnes

Production of vegetables (in 000 MT)

Production of fruits (in 000 MT)

98.0

147.7

121.0 127.7

143.0

2008-09 2009-10 2010-11 2011-12 2012-13*

15.7

18.5

25.822.5 24.0

2008-09 2009-10 2010-11 2011-12 2012-13*


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Source: Load Generation Balance Report 2012-13; Hydro Development Plan for 12th Five Year Plan; Central Electricity Authority; Livemint, September 2011;

Projects Monitor; NHPC: National Hydroelectric Power Corporation

The waterfalls of Sikkim that fall from high altitudes and are perennial in nature are conducive for setting up hydroelectricpower plants.

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim, with a generation capacity of5,295 MW.

A total of 11 hydro electric power projects with a capacity of 2,455 MW (of which the private sector contributed 1,935 MW)

have been identified for benefits during the 12th Five Year Plan in the state.

Hydroelectric power projects under construction

Developer Installed capacity (MW)

Teesta Urja Ltd 1,200

Lanco 500

Dans Energy 96Gati Infrastructure 51

Shiga Energy 97

Sneha Kinetic Energy 96

Sikkim Hydro Power 66

Prospective hydroelectric power projects

Developer Installed capacity (MW)

Himalayan Green Energy 280

Him Urja Pvt Ltd 330

NHPC 520Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99


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Tourism is one of the important sectors of the state. Sikkim is one of the best hill destinations at the global level.

Sikkim has the perfect blend of natural wealth and topography, which ranges from tropical to temperate to alpine. The state isrichly endowed with thick forests, flora and fauna, lakes, glaciers and mountain peaks, which makes it a tourist paradise.

The state is well known for nature and trekking tourism, ecotourism, village and home stay tourism, adventure tourism,wellness tourism, floritourism, culture and heritage tourism, etc.

Creation of tourist complexes, ecotourism, adventure tourism, ethnic-culture tourism, health farms, hotels, convention centres,tourist travel services, etc., are various avenues for investment in the tourism sector.

Cho-Lhamu lake situated in Sikkim is the highest lake in the country and sixth highest in the world. It is expected thatrecognition of this lake would boost tourism in the state.

The state has mighty scenic snow-capped peaks including Kanchenjunga, the worlds third highest peak that attracts a largenumber of tourists from across the globe.

Sikkim Tourism has won national awards including Best State in Tourism-related Programs & Development of Infrastructure2010; Best State for Adventure Tourism 2010; Best State for Comprehensive Development of Tourism 2010-11; and MostInnovative and Unique Tourism Project 2010-11.

Source: Planning Commission Sikkim Presentation 2012-13Union Budget 2012-13


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The state received 421,260 domestic and 18,420 foreign tourists in 2012 (until September 2012).

Sikkim is setting up a fossil park in Mamley (south Sikkim), where rare one billion-year-old Stromatolite fossils occur.

GSI plans to set up a geological museum in Sikkim, displaying fossils, rock samples, etc., from various parts of India. Thiswould attract palaeontology enthusiasts across the world.

Source: Sikkim Tourism, Government of Sikkim; Sikkim Tourism Policy 2010; mines.gov.inGSI: Geological Survey of India, *Upto September 2012

Domestic tourists (in 000) Foreign tourists (in 000)

347.7 421.9

465.2 512.4

615.6

700.0

552.5

421.3

2005 2006 2007 2008 2009 2010 2011 2012*

16.5

18.0 17.819.2 17.7

20.8

23.9

18.4

2005 2006 2007 2008 2009 2010 2011 2012*


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Sikkims IT policy aims to increase the use of IT in the industrial and government sectors. With a high literacy rate, affordablecost, strong English-speaking population, improved telecommunications connectivity and favourable climate, Sikkim is wellpoised to serve the IT industry.

The IT policy provides several incentives and concessions for investments in the IT sector.

The Government of Sikkim has placed information technology high on its agenda.

The Department of Information Technology has been set up for preparing extensive projects; particularly aiming at e-governance, promoting IT enabled services such as medical transcription, telemedicine and computerised braille.

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


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Mulberry, muga, eri, oak-tussar and silk are cultivated in Sikkim.

The Sericulture Directorate is responsible for development of sericulture in Sikkim. The Directorate is maintaining threesericulture farms, one each in east, south and west district.

Forest Department has two sericulture farms, one at Rorathang (east Sikkim) and the other at Mamring and Namthang (southdistrict).

Production of mulberry and eri cocoons increased at a CAGR of 8.3 per cent and 25.9 per cent, respectively, between 2008-09 and 2010-11.

Source: NEDFi Databank


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Carpet weaving, blanket making, handloom, cane andbamboo, thangka painting, lepcha hat-making and angorashawl-weaving are the various handlooms and handicraftactivities practised in Sikkim.

The industry has a great potential to generate income andemployment in the state.

In order to give a boost to the sector, the Government ofSikkim has been making several efforts, which includeproviding training to upgrade the quality and designs of theproducts; bringing expertise and professionals for theirmarketing and supply, etc.

Directorate of Handicrafts and Handlooms, Government ofSikkim, promotes and preserves the rich arts and crafts of

the state.

The khadi and village industrys total production in the statewas valued at US$ 5.3 million, while sales stood at US$ 7.0million over 2012-13*.

Source: Ministry of Micro, Small and Medium Enterprises,

Government of India; *Upto December 2012

Khadi and village industry production in Sikkim(US$ million)

Khadi and village industry sales in Sikkim(US$ million)

7.2 8.28.6

5.3

2009-10 2010-11 2011-12 2012-13*

10.2

11.4 11.3

7.0

2009-10 2010-11 2011-12 2012-13*


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Source: Spices Board, Business Today, January 2013

*Provisional

The state is considered as a large cardamom epicentre ofthe world.

India contributes 50 per cent to total large cardamomproduction in the world. Sikkim is the largest producer of thecrop in India, accounting for around 80 per cent of totalproduction.

The crop produced in the state is mainly exported toPakistan, Singapore or the Middle East, and is the preferredchoice among these nations due to its distinctive aroma andcolour.

Total production of large cardamom was 3,234 tonnesduring 2011-12. Export of the crop increased at a CAGR of33 per cent to 1,175 tonnes in 2010-11 compared to that

during 2007-08.

The Spices Board has proposed to replant 5,000 hectaresand rejuvenate 2,500 hectares of large cardamom in Sikkimduring the 12th Five Year Plan.

Improved bhattis transformed cardamom cultivation into aprofitable venture, ensuring quality livelihood to farmers andboosting large cardamom production.

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

500.0

1,175.0

2007-08 2010-11

4,305.03,675.0 3,540.0

3,310.0 3,234.0

2007-08 2008-09 2009-10 2010-11* 2011-12*

CAGR33%


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Sikkim has significant, untapped natural resource reserves of coal, lime stone, marble, quartzite, graphite and garnet.

Contour mapping and survey of minerals is being carried out by the Department of Mines, Minerals and Geology, of theGovernment of Sikkim.

Occurrences of high grade quartzite with over 90.0 per cent silica have been found in parts of east, west & south Sikkim.

Graphite in the state occurs over parts of west and north districts. Workable occurrences are located at Chitre-Dariely &Dentam-Uttarey area of west Sikkim. The graphite is made up of 40-60 per cent fixed carbon.

Sikkim has extensive deposits with bands of dolomite limestone in Rangit valley Tectonic Window.

The state is endowed with sizeable deposits of marble around Tsungthang, Tsongo and Tolong.

Coal deposits in the form of small pockets have been found in parts of south and west Sikkim. Total coal reserves areestimated to be 0.3 million tonnes.

The state is expected to have marble deposits of 30.0 million tonnes in the Chungthang Valley.

Source: Department of Mines, Minerals and Geology, Government of Sikkim


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Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as lowmanufacturing and labour costs.

Sikkim is home to 14 major pharma companies, which have significant investments in the state. These include Cipla, SunPharma, Zydus Cadila, Alembic, IPCA, Alkem Lab, Intas Pharma, Torrent Pharma and Unichem.

The North-East Industrial and Investment Promotion Policy, 2007 and the pollution free atmosphere is highly beneficial for

pharma investments in Sikkim. Some of the policy incentives are:

100 per cent excise duty exemption on finished products

100 per cent income tax exemption

30 per cent capital investment subsidy on investments in plant and machinery

The state attracted pharmaceutical investments of US$ 527.3 million in 2010-11.

Source: Economic Times, Pharmabiz


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Cipla

Sun Pharmaceuticalindustries limited

Zydus Cadila

Cipla is one of the worlds largest generic pharmaceutical companies with presence in over170 countries. It exports raw materials, intermediates, prescription drugs, over the counter(OTC) and veterinary products, among others.

With more than 20,000 employees, the company generated revenue of US$ 1.5 billion over2012-13.

India-based Sun Pharmaceutical Industries Limited is a global pharmaceutical company

headquartered in Mumbai, Maharashtra. It manufactures and sells pharmaceuticalformulations and active pharmaceutical ingredients (APIs) mainly in India and the US.

The company offers formulations in therapeutic areas such as cardiology, psychiatry,neurology, gastroenterology and diabetology.

With over 13,000 employees, Sun Pharmaceutical generated revenue of US$ 2.1 billionduring 2012-13.

India-based Cadila Healthcare is a pharmaceutical company headquartered in Ahmedabad,Gujarat. It is the fifth largest pharmaceutical company in India and is a significant

manufacturer of generic drugs. Cadila Healthcare has global operations in four continents spread across the US, Europe,

Japan, Brazil, South Africa and 25 other emerging markets. With more than 13,000employees worldwide, the company generated revenue of US$ 1.2 billion over 2012-13.


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List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration, Industrial Entrepreneurs Memorandum, industrial licences

Commerce and Industries DepartmentPermission for land use

Allotment of landSite environmental approval

Sikkim Pollution Control BoardNo-objection Certificate and consent under Water and Pollution Control Act

Registration under States Sales Tax Act and Central and State Excise ActExcise Department

Commercial taxes

Sanction of power

Energy and Power DepartmentPower feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security & Public Health EngineeringDepartmentWater connection


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Agency Contact information

Commerce and Industries Department

Government of SikkimGangtok-737101, SikkimPhone: 91-3592-202 670

Website: sikkimindustries.gov.inE-mail: [email protected]

Energy and Power Department

Energy & Power DepartmentGangtok, Sikkim

Website: www.sikkimpower.orgE-mail: [email protected]

Sikkim Industrial Development & InvestmentCorporation Limited (SIDICO)

Bhanu Path,Gangtok-737103, Sikkim

Phone: 91-3592-202287, 202637, 209622,Fax: 91-3592-202287

Website: www.sidico.orgE-mail: [email protected]

Directorate of Handloom and HandicraftsDirector, D.H.H, Gangtok

East SikkimPhone: 91-3592-203 126/202 926


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Cost parameter Cost estimate Source

Hotel costs US$ 30-150 per room per night Industry sources

Office space rent (2,000 sq ft) US$ 500-2,500 per month Industry sources

Residential space rent (2,000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day)Unskilled: US$ 1.8Skilled: US$ 2.8

Ministry of Labour and Employment,Government of India


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Sikkim Tourism Policy 2010

To build Sikkim as an attractive tourist location and promote the sector as an economic growthengine.

To promote sustainable development of tourism and encourage the private sector to developtourism-related infrastructure and services without disturbing ecology and the environment.

Read more

Objectives

Sikkim Ecotourism Policy 2011

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

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

Read more

Objectives
http://sikkimtourism.gov.in/Webforms/General/pdf/Sikkim_Tourism_Policy_10.pdfhttp://www.sbfpjica.org/docs/ET%20POLICY/ET_Policy_book_Pages_20-01-12[1].pdfhttp://www.sbfpjica.org/docs/ET%20POLICY/ET_Policy_book_Pages_20-01-12[1].pdfhttp://sikkimtourism.gov.in/Webforms/General/pdf/Sikkim_Tourism_Policy_10.pdf


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IT Policy of Sikkim 2006

To employ IT to provide better governance and generate employment.

To improve productivity in government departments through computerisation.

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

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

Read more

Objective
http://www.sikkim.gov.in/MISC/EXTRAS/ITPOLICY.pdfhttp://investinmanipur.nic.in/NEIIPP-2007-Information%20Booklet.pdfhttp://investinmanipur.nic.in/NEIIPP-2007-Information%20Booklet.pdfhttp://www.sikkim.gov.in/MISC/EXTRAS/ITPOLICY.pdf


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Average for the year

YearINR equivalent of one

US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange rates


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Documents

Sikkim - August 2013