50

Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

  • Upload
    others

  • View
    5

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

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

Economic Times November 2012 Aranca Research

Strong floriculture

sector

bull Sikkim is home to around 5000 species of flowering plants 515 rare orchids 60 primula

species and 36 rhododendron species This makes it one of the leading states in the

Northeast region in terms of production and supply of cut flowers to mainland consumer

markets

Strong potential of

medicinal plants

industry

bull Of the 6000 medicinal plants in India 420 plants (including the famous Artemisia vulgaris

that is used as an antiseptic) are grown in Sikkim Moreover it is all set to be recognised

and certified by the Government of India under National Medicinal Plant Board (NMPB)

proposed under the 12th Five Year Plan

Largest producer of

large cardamom

bull 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 global yield

Presence of worldrsquos

third highest peak

bull Sikkim has mighty snow-capped peaks including Kanchenjunga the worldrsquos third highest

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

Source Planning Commission Databook 2012-13 wwwsikkimgovin

GSDP Gross State Domestic Product

bull The engineering sector is delicensed 100 per cent FDI is allowed in the sector

bull Due to policy support there was cumulative FDI of USD140 billion into the sector over April 2000 ndash February 2012 making up 86 per cent of total FDI into the country in that period

Growing demand High economic growth and

improving infrastructure bull Sikkimrsquos GSDP expanded at a

compound annual growth rate (CAGR) of 252 per cent between 2004-05 and 2011-12

bull Large production of cardamom and flowers has opened up immense possibilities for the state economy

bull Rail and air connectivity as well as optical-fibre networks are being developed in the state

Conducive agro-climatic

conditions bull Sikkim has favourable agro-climatic

conditions which support agriculture horticulture and forestry there is potential for development in related areas

bull The state has abundant natural resources which offer significant avenues for investment

Policy and institutional

support bull The state follows the North East

Industrial Investment Promotion Policy 2007 which provides several incentives and concessions for investment

bull Institutional support is provided through various central and state government agencies viz North East Council Ministry of Development of North Eastern Region and Commerce and Industries Department

Rich labour pool

bull Sikkim has a high literacy rate of 822 per cent

bull The state has a skilled and educated labour force

bull With the establishment of Sikkim Manipal University and the Sikkim University the quality and quantity of employable graduates in the state has steadily improved

2012-13

Hydro

power

generation

capacity

1743 MW

Potential

Estimated

hydropower

potential

8000 MW

Advantage

Sikkim

Sikkim is surrounded by vast stretches of Tibetan Plateaus

in the north the Chumbi Valley of Tibet and the Kingdom of

Bhutan in the east the Kingdom of Nepal in the west and

Darjeeling district of West Bengal in the south

Nepali Bhutia Lepcha Limboo Magar Rai Gurung

Sherpa Tamang Newari and Sunuwar (Mukhia) are the

commonly spoken languages Hindi and English are also

widely spoken

Gyalshing Namchi Mangan Jorethang Singtam Rangpo

Pakyong Rhenock Meli Chungthang and Soreng are

some of the key cities and towns in the state

Sikkim has 28 mountain peaks 84 glaciers 227 lakes five

hot springs and eight mountain passes ndash making it an ideal

tourist 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) 7096

Administrative districts (No) 4

Population density (persons per sq km) 86

Total population (million) 061

Male population (million) 032

Female population (million) 029

Sex ratio (females per 1000 males) 889

Literacy rate () 822

Parameter Sikkim All-States Source

Economy 2011-12 2011-12 2012-13

GSDP as a percentage of all statesrsquo GSDP 010 100 100 Planning Commission Databook

current prices

Average GSDP growth rate () 253 159 156 Planning Commission Databook

2004-05 to 2011-12 current prices

Per capita GSDP (US$) 28444 14348 14142 Planning Commission Databook

current prices

Physical Infrastructure

Installed power capacity (MW) 3055 2251331 Central Electricity Authority as of May 2013

Wireless subscribers (No) 41159859^ 867803583 Telecom Regulatory Authority of India as of

March 2013

Broadband subscribers (No) 4316 15050000 Ministry of Communications amp Information

Technology as of December 2012

National Highway length (km) 149 79116 Ministry of Road Transport amp Highways

as of March 2013

Social Indicators

Literacy rate () 874 740 Provisional data ndash Census 2011

Birth rate (per 1000 population) 133 218 SRS Bulletin (wwwcensusindiagovin) 2012

SRS Sample Registration System Calculated in Indian rupee terms

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

Parameter Sikkim All-States Source

Investment

FDI equity inflows (US$ billion) 23 1933 Department of Industrial Policy amp Promotion

April 2000 to March 2013

Outstanding investments (US$ billion) 205 104992 CMIE (2012-13)

Industrial Infrastructure

PPP projects (No) 31 881 wwwpppindiadatabasecom

Note PPP Public-Private Partnership

Including West Bengal and Andaman amp Nicobar Islands

At current prices Sikkimrsquos total gross state domestic

product (GSDP) was US$ 18 billion in 2011-12

GSDP expanded at a CAGR of 252 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 Current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

04 05 05

06 07

13

16

18

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

252

At current prices Sikkimrsquos total net state domestic product

(NSDP) was US$ 16 billion during 2011-12

NSDP expanded at a CAGR of 257 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

03 04 04

05 06

12

14

16

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

257

The statersquos per capita GSDP was US$ 28444 in 2011-12

compared to US$ 6834 during 2004-05

Per capita GSDP increased at a CAGR of 237 per cent

between 2004-05 and 2011-12

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

683

786 821 1061 1182

2149

2575 2844

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

237

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

594 683 711 906

1023

1914

2293 2533

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

Sikkimrsquos per capita NSDP was US$ 25331 in 2011-12

compared to US$ 5938 during 2004-05

Per capita NSDP increased at CAGR of 242 per cent

between 2004-05 and 2011-12

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

CAGR

242

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

At a CAGR of 373 per cent the secondary sector has been

the fastest growing among the three sectors from 2004-05

to 2011-12 It was driven by manufacturing construction

and electricity gas amp water supply

In 2011-12 the secondary sector contributed 548 per cent

to the statersquos GSDP at current prices It was followed by the

tertiary sector at 370 per cent and primary sector at 82 per

cent

The tertiary sector grew at a CAGR of 190 per cent

between 2004-05 and 2011-12 The growth has been driven

by trade hotels real estate finance insurance transport

communications and other services

The primary sector grew at a CAGR of 113 per cent

between 2004-05 and 2011-12 Source CMIE

CAGR Compound Annual Growth Rate

In Indian rupee terms

Percentage distribution of GSDP

187 82

287 548

526 370

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR

113

190

373

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 2: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Source Planning Commission Databook 2012-13 wwwsikkimgovin

GSDP Gross State Domestic Product

bull The engineering sector is delicensed 100 per cent FDI is allowed in the sector

bull Due to policy support there was cumulative FDI of USD140 billion into the sector over April 2000 ndash February 2012 making up 86 per cent of total FDI into the country in that period

Growing demand High economic growth and

improving infrastructure bull Sikkimrsquos GSDP expanded at a

compound annual growth rate (CAGR) of 252 per cent between 2004-05 and 2011-12

bull Large production of cardamom and flowers has opened up immense possibilities for the state economy

bull Rail and air connectivity as well as optical-fibre networks are being developed in the state

Conducive agro-climatic

conditions bull Sikkim has favourable agro-climatic

conditions which support agriculture horticulture and forestry there is potential for development in related areas

bull The state has abundant natural resources which offer significant avenues for investment

Policy and institutional

support bull The state follows the North East

Industrial Investment Promotion Policy 2007 which provides several incentives and concessions for investment

bull Institutional support is provided through various central and state government agencies viz North East Council Ministry of Development of North Eastern Region and Commerce and Industries Department

Rich labour pool

bull Sikkim has a high literacy rate of 822 per cent

bull The state has a skilled and educated labour force

bull With the establishment of Sikkim Manipal University and the Sikkim University the quality and quantity of employable graduates in the state has steadily improved

2012-13

Hydro

power

generation

capacity

1743 MW

Potential

Estimated

hydropower

potential

8000 MW

Advantage

Sikkim

Sikkim is surrounded by vast stretches of Tibetan Plateaus

in the north the Chumbi Valley of Tibet and the Kingdom of

Bhutan in the east the Kingdom of Nepal in the west and

Darjeeling district of West Bengal in the south

Nepali Bhutia Lepcha Limboo Magar Rai Gurung

Sherpa Tamang Newari and Sunuwar (Mukhia) are the

commonly spoken languages Hindi and English are also

widely spoken

Gyalshing Namchi Mangan Jorethang Singtam Rangpo

Pakyong Rhenock Meli Chungthang and Soreng are

some of the key cities and towns in the state

Sikkim has 28 mountain peaks 84 glaciers 227 lakes five

hot springs and eight mountain passes ndash making it an ideal

tourist 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) 7096

Administrative districts (No) 4

Population density (persons per sq km) 86

Total population (million) 061

Male population (million) 032

Female population (million) 029

Sex ratio (females per 1000 males) 889

Literacy rate () 822

Parameter Sikkim All-States Source

Economy 2011-12 2011-12 2012-13

GSDP as a percentage of all statesrsquo GSDP 010 100 100 Planning Commission Databook

current prices

Average GSDP growth rate () 253 159 156 Planning Commission Databook

2004-05 to 2011-12 current prices

Per capita GSDP (US$) 28444 14348 14142 Planning Commission Databook

current prices

Physical Infrastructure

Installed power capacity (MW) 3055 2251331 Central Electricity Authority as of May 2013

Wireless subscribers (No) 41159859^ 867803583 Telecom Regulatory Authority of India as of

March 2013

Broadband subscribers (No) 4316 15050000 Ministry of Communications amp Information

Technology as of December 2012

National Highway length (km) 149 79116 Ministry of Road Transport amp Highways

as of March 2013

Social Indicators

Literacy rate () 874 740 Provisional data ndash Census 2011

Birth rate (per 1000 population) 133 218 SRS Bulletin (wwwcensusindiagovin) 2012

SRS Sample Registration System Calculated in Indian rupee terms

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

Parameter Sikkim All-States Source

Investment

FDI equity inflows (US$ billion) 23 1933 Department of Industrial Policy amp Promotion

April 2000 to March 2013

Outstanding investments (US$ billion) 205 104992 CMIE (2012-13)

Industrial Infrastructure

PPP projects (No) 31 881 wwwpppindiadatabasecom

Note PPP Public-Private Partnership

Including West Bengal and Andaman amp Nicobar Islands

At current prices Sikkimrsquos total gross state domestic

product (GSDP) was US$ 18 billion in 2011-12

GSDP expanded at a CAGR of 252 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 Current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

04 05 05

06 07

13

16

18

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

252

At current prices Sikkimrsquos total net state domestic product

(NSDP) was US$ 16 billion during 2011-12

NSDP expanded at a CAGR of 257 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

03 04 04

05 06

12

14

16

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

257

The statersquos per capita GSDP was US$ 28444 in 2011-12

compared to US$ 6834 during 2004-05

Per capita GSDP increased at a CAGR of 237 per cent

between 2004-05 and 2011-12

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

683

786 821 1061 1182

2149

2575 2844

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

237

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

594 683 711 906

1023

1914

2293 2533

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

Sikkimrsquos per capita NSDP was US$ 25331 in 2011-12

compared to US$ 5938 during 2004-05

Per capita NSDP increased at CAGR of 242 per cent

between 2004-05 and 2011-12

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

CAGR

242

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

At a CAGR of 373 per cent the secondary sector has been

the fastest growing among the three sectors from 2004-05

to 2011-12 It was driven by manufacturing construction

and electricity gas amp water supply

In 2011-12 the secondary sector contributed 548 per cent

to the statersquos GSDP at current prices It was followed by the

tertiary sector at 370 per cent and primary sector at 82 per

cent

The tertiary sector grew at a CAGR of 190 per cent

between 2004-05 and 2011-12 The growth has been driven

by trade hotels real estate finance insurance transport

communications and other services

The primary sector grew at a CAGR of 113 per cent

between 2004-05 and 2011-12 Source CMIE

CAGR Compound Annual Growth Rate

In Indian rupee terms

Percentage distribution of GSDP

187 82

287 548

526 370

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR

113

190

373

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 3: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Sikkim is surrounded by vast stretches of Tibetan Plateaus

in the north the Chumbi Valley of Tibet and the Kingdom of

Bhutan in the east the Kingdom of Nepal in the west and

Darjeeling district of West Bengal in the south

Nepali Bhutia Lepcha Limboo Magar Rai Gurung

Sherpa Tamang Newari and Sunuwar (Mukhia) are the

commonly spoken languages Hindi and English are also

widely spoken

Gyalshing Namchi Mangan Jorethang Singtam Rangpo

Pakyong Rhenock Meli Chungthang and Soreng are

some of the key cities and towns in the state

Sikkim has 28 mountain peaks 84 glaciers 227 lakes five

hot springs and eight mountain passes ndash making it an ideal

tourist 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) 7096

Administrative districts (No) 4

Population density (persons per sq km) 86

Total population (million) 061

Male population (million) 032

Female population (million) 029

Sex ratio (females per 1000 males) 889

Literacy rate () 822

Parameter Sikkim All-States Source

Economy 2011-12 2011-12 2012-13

GSDP as a percentage of all statesrsquo GSDP 010 100 100 Planning Commission Databook

current prices

Average GSDP growth rate () 253 159 156 Planning Commission Databook

2004-05 to 2011-12 current prices

Per capita GSDP (US$) 28444 14348 14142 Planning Commission Databook

current prices

Physical Infrastructure

Installed power capacity (MW) 3055 2251331 Central Electricity Authority as of May 2013

Wireless subscribers (No) 41159859^ 867803583 Telecom Regulatory Authority of India as of

March 2013

Broadband subscribers (No) 4316 15050000 Ministry of Communications amp Information

Technology as of December 2012

National Highway length (km) 149 79116 Ministry of Road Transport amp Highways

as of March 2013

Social Indicators

Literacy rate () 874 740 Provisional data ndash Census 2011

Birth rate (per 1000 population) 133 218 SRS Bulletin (wwwcensusindiagovin) 2012

SRS Sample Registration System Calculated in Indian rupee terms

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

Parameter Sikkim All-States Source

Investment

FDI equity inflows (US$ billion) 23 1933 Department of Industrial Policy amp Promotion

April 2000 to March 2013

Outstanding investments (US$ billion) 205 104992 CMIE (2012-13)

Industrial Infrastructure

PPP projects (No) 31 881 wwwpppindiadatabasecom

Note PPP Public-Private Partnership

Including West Bengal and Andaman amp Nicobar Islands

At current prices Sikkimrsquos total gross state domestic

product (GSDP) was US$ 18 billion in 2011-12

GSDP expanded at a CAGR of 252 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 Current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

04 05 05

06 07

13

16

18

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

252

At current prices Sikkimrsquos total net state domestic product

(NSDP) was US$ 16 billion during 2011-12

NSDP expanded at a CAGR of 257 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

03 04 04

05 06

12

14

16

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

257

The statersquos per capita GSDP was US$ 28444 in 2011-12

compared to US$ 6834 during 2004-05

Per capita GSDP increased at a CAGR of 237 per cent

between 2004-05 and 2011-12

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

683

786 821 1061 1182

2149

2575 2844

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

237

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

594 683 711 906

1023

1914

2293 2533

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

Sikkimrsquos per capita NSDP was US$ 25331 in 2011-12

compared to US$ 5938 during 2004-05

Per capita NSDP increased at CAGR of 242 per cent

between 2004-05 and 2011-12

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

CAGR

242

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

At a CAGR of 373 per cent the secondary sector has been

the fastest growing among the three sectors from 2004-05

to 2011-12 It was driven by manufacturing construction

and electricity gas amp water supply

In 2011-12 the secondary sector contributed 548 per cent

to the statersquos GSDP at current prices It was followed by the

tertiary sector at 370 per cent and primary sector at 82 per

cent

The tertiary sector grew at a CAGR of 190 per cent

between 2004-05 and 2011-12 The growth has been driven

by trade hotels real estate finance insurance transport

communications and other services

The primary sector grew at a CAGR of 113 per cent

between 2004-05 and 2011-12 Source CMIE

CAGR Compound Annual Growth Rate

In Indian rupee terms

Percentage distribution of GSDP

187 82

287 548

526 370

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR

113

190

373

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 4: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Parameter Sikkim All-States Source

Economy 2011-12 2011-12 2012-13

GSDP as a percentage of all statesrsquo GSDP 010 100 100 Planning Commission Databook

current prices

Average GSDP growth rate () 253 159 156 Planning Commission Databook

2004-05 to 2011-12 current prices

Per capita GSDP (US$) 28444 14348 14142 Planning Commission Databook

current prices

Physical Infrastructure

Installed power capacity (MW) 3055 2251331 Central Electricity Authority as of May 2013

Wireless subscribers (No) 41159859^ 867803583 Telecom Regulatory Authority of India as of

March 2013

Broadband subscribers (No) 4316 15050000 Ministry of Communications amp Information

Technology as of December 2012

National Highway length (km) 149 79116 Ministry of Road Transport amp Highways

as of March 2013

Social Indicators

Literacy rate () 874 740 Provisional data ndash Census 2011

Birth rate (per 1000 population) 133 218 SRS Bulletin (wwwcensusindiagovin) 2012

SRS Sample Registration System Calculated in Indian rupee terms

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

Parameter Sikkim All-States Source

Investment

FDI equity inflows (US$ billion) 23 1933 Department of Industrial Policy amp Promotion

April 2000 to March 2013

Outstanding investments (US$ billion) 205 104992 CMIE (2012-13)

Industrial Infrastructure

PPP projects (No) 31 881 wwwpppindiadatabasecom

Note PPP Public-Private Partnership

Including West Bengal and Andaman amp Nicobar Islands

At current prices Sikkimrsquos total gross state domestic

product (GSDP) was US$ 18 billion in 2011-12

GSDP expanded at a CAGR of 252 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 Current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

04 05 05

06 07

13

16

18

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

252

At current prices Sikkimrsquos total net state domestic product

(NSDP) was US$ 16 billion during 2011-12

NSDP expanded at a CAGR of 257 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

03 04 04

05 06

12

14

16

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

257

The statersquos per capita GSDP was US$ 28444 in 2011-12

compared to US$ 6834 during 2004-05

Per capita GSDP increased at a CAGR of 237 per cent

between 2004-05 and 2011-12

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

683

786 821 1061 1182

2149

2575 2844

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

237

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

594 683 711 906

1023

1914

2293 2533

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

Sikkimrsquos per capita NSDP was US$ 25331 in 2011-12

compared to US$ 5938 during 2004-05

Per capita NSDP increased at CAGR of 242 per cent

between 2004-05 and 2011-12

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

CAGR

242

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

At a CAGR of 373 per cent the secondary sector has been

the fastest growing among the three sectors from 2004-05

to 2011-12 It was driven by manufacturing construction

and electricity gas amp water supply

In 2011-12 the secondary sector contributed 548 per cent

to the statersquos GSDP at current prices It was followed by the

tertiary sector at 370 per cent and primary sector at 82 per

cent

The tertiary sector grew at a CAGR of 190 per cent

between 2004-05 and 2011-12 The growth has been driven

by trade hotels real estate finance insurance transport

communications and other services

The primary sector grew at a CAGR of 113 per cent

between 2004-05 and 2011-12 Source CMIE

CAGR Compound Annual Growth Rate

In Indian rupee terms

Percentage distribution of GSDP

187 82

287 548

526 370

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR

113

190

373

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 5: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Parameter Sikkim All-States Source

Investment

FDI equity inflows (US$ billion) 23 1933 Department of Industrial Policy amp Promotion

April 2000 to March 2013

Outstanding investments (US$ billion) 205 104992 CMIE (2012-13)

Industrial Infrastructure

PPP projects (No) 31 881 wwwpppindiadatabasecom

Note PPP Public-Private Partnership

Including West Bengal and Andaman amp Nicobar Islands

At current prices Sikkimrsquos total gross state domestic

product (GSDP) was US$ 18 billion in 2011-12

GSDP expanded at a CAGR of 252 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 Current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

04 05 05

06 07

13

16

18

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

252

At current prices Sikkimrsquos total net state domestic product

(NSDP) was US$ 16 billion during 2011-12

NSDP expanded at a CAGR of 257 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

03 04 04

05 06

12

14

16

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

257

The statersquos per capita GSDP was US$ 28444 in 2011-12

compared to US$ 6834 during 2004-05

Per capita GSDP increased at a CAGR of 237 per cent

between 2004-05 and 2011-12

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

683

786 821 1061 1182

2149

2575 2844

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

237

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

594 683 711 906

1023

1914

2293 2533

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

Sikkimrsquos per capita NSDP was US$ 25331 in 2011-12

compared to US$ 5938 during 2004-05

Per capita NSDP increased at CAGR of 242 per cent

between 2004-05 and 2011-12

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

CAGR

242

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

At a CAGR of 373 per cent the secondary sector has been

the fastest growing among the three sectors from 2004-05

to 2011-12 It was driven by manufacturing construction

and electricity gas amp water supply

In 2011-12 the secondary sector contributed 548 per cent

to the statersquos GSDP at current prices It was followed by the

tertiary sector at 370 per cent and primary sector at 82 per

cent

The tertiary sector grew at a CAGR of 190 per cent

between 2004-05 and 2011-12 The growth has been driven

by trade hotels real estate finance insurance transport

communications and other services

The primary sector grew at a CAGR of 113 per cent

between 2004-05 and 2011-12 Source CMIE

CAGR Compound Annual Growth Rate

In Indian rupee terms

Percentage distribution of GSDP

187 82

287 548

526 370

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR

113

190

373

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 6: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

At current prices Sikkimrsquos total gross state domestic

product (GSDP) was US$ 18 billion in 2011-12

GSDP expanded at a CAGR of 252 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 Current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

04 05 05

06 07

13

16

18

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

252

At current prices Sikkimrsquos total net state domestic product

(NSDP) was US$ 16 billion during 2011-12

NSDP expanded at a CAGR of 257 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

03 04 04

05 06

12

14

16

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

257

The statersquos per capita GSDP was US$ 28444 in 2011-12

compared to US$ 6834 during 2004-05

Per capita GSDP increased at a CAGR of 237 per cent

between 2004-05 and 2011-12

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

683

786 821 1061 1182

2149

2575 2844

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

237

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

594 683 711 906

1023

1914

2293 2533

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

Sikkimrsquos per capita NSDP was US$ 25331 in 2011-12

compared to US$ 5938 during 2004-05

Per capita NSDP increased at CAGR of 242 per cent

between 2004-05 and 2011-12

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

CAGR

242

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

At a CAGR of 373 per cent the secondary sector has been

the fastest growing among the three sectors from 2004-05

to 2011-12 It was driven by manufacturing construction

and electricity gas amp water supply

In 2011-12 the secondary sector contributed 548 per cent

to the statersquos GSDP at current prices It was followed by the

tertiary sector at 370 per cent and primary sector at 82 per

cent

The tertiary sector grew at a CAGR of 190 per cent

between 2004-05 and 2011-12 The growth has been driven

by trade hotels real estate finance insurance transport

communications and other services

The primary sector grew at a CAGR of 113 per cent

between 2004-05 and 2011-12 Source CMIE

CAGR Compound Annual Growth Rate

In Indian rupee terms

Percentage distribution of GSDP

187 82

287 548

526 370

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR

113

190

373

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 7: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

At current prices Sikkimrsquos total net state domestic product

(NSDP) was US$ 16 billion during 2011-12

NSDP expanded at a CAGR of 257 per cent between

2004-05 and 2011-12

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

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

03 04 04

05 06

12

14

16

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

257

The statersquos per capita GSDP was US$ 28444 in 2011-12

compared to US$ 6834 during 2004-05

Per capita GSDP increased at a CAGR of 237 per cent

between 2004-05 and 2011-12

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

683

786 821 1061 1182

2149

2575 2844

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

237

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

594 683 711 906

1023

1914

2293 2533

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

Sikkimrsquos per capita NSDP was US$ 25331 in 2011-12

compared to US$ 5938 during 2004-05

Per capita NSDP increased at CAGR of 242 per cent

between 2004-05 and 2011-12

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

CAGR

242

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

At a CAGR of 373 per cent the secondary sector has been

the fastest growing among the three sectors from 2004-05

to 2011-12 It was driven by manufacturing construction

and electricity gas amp water supply

In 2011-12 the secondary sector contributed 548 per cent

to the statersquos GSDP at current prices It was followed by the

tertiary sector at 370 per cent and primary sector at 82 per

cent

The tertiary sector grew at a CAGR of 190 per cent

between 2004-05 and 2011-12 The growth has been driven

by trade hotels real estate finance insurance transport

communications and other services

The primary sector grew at a CAGR of 113 per cent

between 2004-05 and 2011-12 Source CMIE

CAGR Compound Annual Growth Rate

In Indian rupee terms

Percentage distribution of GSDP

187 82

287 548

526 370

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR

113

190

373

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 8: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

The statersquos per capita GSDP was US$ 28444 in 2011-12

compared to US$ 6834 during 2004-05

Per capita GSDP increased at a CAGR of 237 per cent

between 2004-05 and 2011-12

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

683

786 821 1061 1182

2149

2575 2844

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

CAGR

237

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

594 683 711 906

1023

1914

2293 2533

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

Sikkimrsquos per capita NSDP was US$ 25331 in 2011-12

compared to US$ 5938 during 2004-05

Per capita NSDP increased at CAGR of 242 per cent

between 2004-05 and 2011-12

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

CAGR

242

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

At a CAGR of 373 per cent the secondary sector has been

the fastest growing among the three sectors from 2004-05

to 2011-12 It was driven by manufacturing construction

and electricity gas amp water supply

In 2011-12 the secondary sector contributed 548 per cent

to the statersquos GSDP at current prices It was followed by the

tertiary sector at 370 per cent and primary sector at 82 per

cent

The tertiary sector grew at a CAGR of 190 per cent

between 2004-05 and 2011-12 The growth has been driven

by trade hotels real estate finance insurance transport

communications and other services

The primary sector grew at a CAGR of 113 per cent

between 2004-05 and 2011-12 Source CMIE

CAGR Compound Annual Growth Rate

In Indian rupee terms

Percentage distribution of GSDP

187 82

287 548

526 370

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR

113

190

373

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 9: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

594 683 711 906

1023

1914

2293 2533

200

4-2

00

5

200

5-2

00

6

200

6-2

00

7

200

7-2

00

8

200

8-2

00

9

200

9-2

01

0

201

0-2

01

1

201

1-2

01

2

Sikkimrsquos per capita NSDP was US$ 25331 in 2011-12

compared to US$ 5938 during 2004-05

Per capita NSDP increased at CAGR of 242 per cent

between 2004-05 and 2011-12

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

CAGR

242

Source Planning Commission Databook 2012-13 current prices

CAGR Compound Annual Growth Rate

In Indian rupee terms

At a CAGR of 373 per cent the secondary sector has been

the fastest growing among the three sectors from 2004-05

to 2011-12 It was driven by manufacturing construction

and electricity gas amp water supply

In 2011-12 the secondary sector contributed 548 per cent

to the statersquos GSDP at current prices It was followed by the

tertiary sector at 370 per cent and primary sector at 82 per

cent

The tertiary sector grew at a CAGR of 190 per cent

between 2004-05 and 2011-12 The growth has been driven

by trade hotels real estate finance insurance transport

communications and other services

The primary sector grew at a CAGR of 113 per cent

between 2004-05 and 2011-12 Source CMIE

CAGR Compound Annual Growth Rate

In Indian rupee terms

Percentage distribution of GSDP

187 82

287 548

526 370

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR

113

190

373

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 10: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

At a CAGR of 373 per cent the secondary sector has been

the fastest growing among the three sectors from 2004-05

to 2011-12 It was driven by manufacturing construction

and electricity gas amp water supply

In 2011-12 the secondary sector contributed 548 per cent

to the statersquos GSDP at current prices It was followed by the

tertiary sector at 370 per cent and primary sector at 82 per

cent

The tertiary sector grew at a CAGR of 190 per cent

between 2004-05 and 2011-12 The growth has been driven

by trade hotels real estate finance insurance transport

communications and other services

The primary sector grew at a CAGR of 113 per cent

between 2004-05 and 2011-12 Source CMIE

CAGR Compound Annual Growth Rate

In Indian rupee terms

Percentage distribution of GSDP

187 82

287 548

526 370

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR

113

190

373

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 11: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Source Annual Progress Report 2010-11 Sikkim Agrisnet Spices Board

Ha hectare As of 2011-2012

Crop Annual production ndash in 2010-11

(lsquo000 metric tonnes)

Maize 662

Rice 21

Small millets 29

Oil-seeds 8

Pulses 6

Buck wheat 41

Large cardamom 32

The agriculture sector contributed around 81 per cent to

Sikkimrsquos GSDP in 2011-12

Maize rice orange oil seeds pulses wheat tea and

spices cereals millet are the key agricultural products of

Sikkim During 2010-11 total food grain production in the

state was 103410 tonnes

Sikkim is one of the top producers of large cardamom

contributing over 850 per cent to Indiarsquos total production

Sikkim aims to make the statersquos farming fully organic by

2015 Organic farming demonstrations have been made in

over 3000 hectares (ha) of land and bio-fertilisers have

been introduced in 5340 ha A bio-fertiliser manufacturing

unit has also been set up

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Annual production of key crops

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 12: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

FDI inflows reached US$ 23 billion from April 2000 to

March 2013

In 2012-13 the statersquos outstanding investments reached

US$ 205 billion

The electricity sector accounted for 918 per cent of total

outstanding investments followed by services (71 per cent)

and manufacturing (11 per cent)

Break up of outstanding investments by sector

(2012-13)

11

918

71

Manufacturing

Electricity

Services

Source CMIE 2012-13

Department of Industrial Policy and Promotion

Including West Bengal and Andaman amp Nicobar Islands

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 13: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Sikkim has a total road length of 29479 km The state is

connected to West Bengal and the rest of India through

National Highway (NH)-31A

The state Public Works Department (PWD) and the Border

Roads Organisation (BRO) maintain the roads The Sikkim

Nationalised Transport (SNT) operates 114 buses (covering

43 routes) 64 trucks and 33 tankers across the state

Source Public Works Roads and Bridges Department

Government of Sikkim mhupagovin

Ministry of Road Transport amp Highways

Road type Length (km)

National highways (NH) 149

State highways 203

District roads 18715

Border roads (Including NH) 8734

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 14: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Source httpsikkim-roadsandbridgesgovinvisionpdf

PWD 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 the

development of roads and bridges until 2020

Some of the objectives are

To provide safe comfortable and stable roads with

the capacity to handle high loading

All places of tourist or economic importance to be

connected 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 roads

connectivity 180 233

Upgradation from

intermediate lane to

4 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 of

bridges (No) 9 8

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 15: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Indian Railway Construction Company has started the

construction of rail connectivity between Savor and

Rangoon

Total length of rail track between Savor and Rangoon

would be 527 km

The proposal of Rangpo-Gangtok rail connectivity has

been sent to the Planning Commission

Construction of an airport in Pakyong would be completed

by the end of December 2013 Helicopter services are

available from Bagdogra (West Bengal) to Gangtok

Status of rail project

Cost US$ 6224 million

Outlay for 2012-13 US$ 7 million

Overall progress 01 percent

Target of completion December 2015

Source North-East Region Rail Infrastructure presentation

Ministry of Railways Sikkim Times June 2013

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 16: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

As of May 2013 Sikkim had a total installed power

generation capacity of 3055 MW It consisted of 1494 MW

under central utilities 990 MW under private utilities and

571 MW under state utilities

Thermal power contributed 791 MW to total installed power

generation capacity while hydropower and renewable

power contributed 1743 MW and 521 MW respectively

About 28 hydroelectric power plants (HEPs) are being set

up under the public-private partnership (PPP) mode

Sikkim has a peak hydroelectric capacity of 8000 MW with

a firm base of 3000 MW providing a huge potential for

development

Some power projects such as Teesta Stage III Hydel Power

having a capacity of 1200 MW and Teesta VI Hydro Power

with a capacity of 510 MW are scheduled for completion in

the next 36 months

During 2013-14 the state would commission the 99 MW

Chuzachen hydro electric power project which is slated to

fetch about US$ 93 million on an annual basis

Annual turnover from the sale of power is estimated at US$

1657 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)

1931 1955 2014 2064

3055 3055

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

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 17: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Telecom infrastructure (March 2013)

Wireless subscribers 41159859^

Wire-line subscribers 548248^

Broadband subscribers 4316

BSNL telephone connections 542345^

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 amp Nicobar Sikkim and excluding Kolkata)

As of December 2012 As of January 2013

Sikkim is among the states with the highest tele-density in

the country

As of December 2011 the state had 47 telephone

exchanges with 542345^ Bharat Sanchar Nigam Limited

(BSNL) telephone connections

Virtual private network (VPN) and 3G-services are available

in the state

Forty five common service centres have been constructed

across the state The centres provide an internet-based

interface for implementing various government programmes

and 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 Sikkim

Bharat Sanchar Nigam Limited (BSNL)

Reliance Communications

Bharti Airtel

Tata Teleservices

Vodafone Essar

IDEA Cellular

Sources Telecom Regulatory Authority of India

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 18: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Name of works Cost

(US$ million)

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase 1)

06

Integrated housing and slum

development of Old Slaughter

House Rangpo

46

Integrated housing and slum

development of Old Slaughter

House Gangtok (Phase II) 09

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) the rehabilitation of sewerage systems

of Gangtok is being undertaken at a cost of US$ 59 million

Water treatment and distribution system upgradation are

also being undertaken at a cost of US$ 153 million

Under the Urban Infrastructure Development Scheme for

Small and Medium Towns (UIDSSMT) US$ 87 million has

been allocated for development of water supply systems

and sewerage in Mangan Namchi Jorethang Melli and

Rangpo

The Sikkim Water Security amp Public Health Engineering

Department (WS amp PHED) provides water supply to

Gangtok six major notified towns 41 other urban towns and

92 notified rural marketing centres Gangtok has a

requirement of 30 million litres per day and the WS amp PHED

has a storage and distribution capacity of 455 million litres

The Union Ministry of Science and Technology has

sanctioned a US$ 09 million biotechnology park at

Pakyong in June 2012 The park would have all facilities

including 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

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 19: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Bermelee Khola HEP Energy BOOT 47 Construction

Bhasmey Hydro Power Plant Energy BOOT 321 Construction

Chujachen Hydro Power Plant Energy BOT 988 Construction

Dikchu Hydro Power Plant Energy BOOT 1107 Construction

Hee Khola HEP Power Plant Energy BOOT 53 Construction

Infrastructures for evacuation of power from IPP projects Energy BOOT 221 EOI

Jorathang Loop Power Project Energy BOOT 598 Construction

Kalez Khola HEP Power Plant Energy BOOT 106 Construction

Kissim Khola HEP Power Plant Energy - 33 Construction

Panan Hydro Power Project Energy - 1993 Construction

Rangit - II Power Plant Energy BOOT 5924 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer BOT Build-Operate-Transfer

EOI Expression of Interest IPP Independent Power Producers

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 20: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Project Name Sector PPP Type Project Cost

(US$ million) Stage

Rangit-IV Hydro Power Plant Energy BOOT 1617 Construction

Rongnichu Stroage Hydro Power Plant Energy - 948 Construction

Rorathang Power Plant Energy BOOT 332 Construction

Talem HEP Power Plant Energy BOOT 1515 Construction

Taramchu Hydro Power Plant Energy BOOT 361 Under bidding

Teesta - VI Power Plant Energy BOOT 6643 Construction

Teesta -1 Hydro Power Plant Energy BOOT 2673 Construction

Teesta -II Power Project Energy BOOT 289 Construction

Teesta -III Hydro Power Project Energy - 13065 Construction

Upper Rimbi HEP Energy BOOT 131 Construction

Source pppindiadatabasecom

BOOT Build-Own-Operate-Transfer

HEP Hydroelectric Power Plant

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 21: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Educational infrastructure (2010-11)

Universities 5

Colleges 18

Primary schools 749

Middle schools 244

High schools 126

Sikkim has a literacy rate of 822 per cent the male and

female literacy rates were 873 per cent and 764 per cent

respectively

Sikkim has become the first state in India to allocate 20 per

cent of its budget for 2012-13 to the education sector

The Sikkim Manipal University (SMU) a partnership

between the Government of Sikkim and Manipal Education

and Medical Group (MEMG) provides technical healthcare

and science education It is rated as one of the top

universities in the country

Distance education is available for students via SMU and

Indira Gandhi National Open University (IGNOU)

The state plans to launch Sikkim Human Resource

Development Mission 2013 Sikkim Youth Empowerment

and Self Reliant Mission 2013 and Sikkim Gram Swaraj

Abhiyan in the current year to enhance the quality of

education

Source Planning Commission Databook 2013 Human

Resource Development Department Government of Sikkim

University Grants Commission

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 22: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Primary education statistics ()

Gross enrollment ratio (2010-11) Class I-V 1616

Class VI-VIII 788

Dropout ratio ( 2009-10) Class I-V 186

Class I-X 807

Source Planning Commission Databook 2013

Literacy rates ()

Literacy rate 822

Male literacy 873

Female literacy 764

Source Census 2011 (provisional data)

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 23: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Sources Ministry of Health amp Family Welfare Government of Sikkim

NEDFi Databank wwwsikkimhealthgovin As of May 2010

Health indicators (2011)

Population served per government hospital 18424^

Population served per government hospital bed 390^

Birth rate (per thousand persons) 176

Death rate (Per thousand persons) 56

Infant mortality rate 26

Sikkim has an impressive health infrastructure one of the

best in the country

The state fares better than the national average in almost all

health 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 33

government hospitals as of March 2011

The Department of Health and Family Welfare is

instrumental and 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 infrastructure (2011-12)

Sub-centres 147

Primary health centres 24

Community health centres 4

District hospitals 4

Central referral hospital (STNM

Hospital Gangtok) 1

District Tuberculosis Centre 1

Government hospitals 33

Sources Central Bureau of Health Intelligence Government of India

Sample Registration System (SRS) Bulletin 2012 (wwwcensusindiagovin)

Per thousand live births ^As of January 2012

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 24: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

There are three ethnic communities in Sikkim Lepcha

Bhutia and Nepali Buddhism and 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 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 shortest

distance its temperature varies from tropical and temperate

in the southern districts to alpine and tundra in the northern

peaks

The state is richly endowed with rare and exotic flora and

fauna which includes 4500 different flowering plants 550

types of orchids 36 varieties of rhodendrons 28 bamboo

species over 144 mammals 550 species of birds and 600

different butterflies ndash making it a nature loverrsquos 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

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 25: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Sikkim has identified Rangpo-Gangtok Melli-Jorethang Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with

provision for giving land to investors on a lease basis

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 and floriculture minor forest-based industries animal husbandry and

dairy products tourism-related industries IT including knowledge-based industries precision oriented high value-low volume

products hydro-power tea education and hospitality as thrust sectors

The Information Technology Department Government of Sikkim is in the process of setting up a state-of-the-art IT Park and

National Institute of Electronics and Information Technology (NIELIT) at Pakyong

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 26: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

The Commerce and Industries Department of Sikkim is

involved in promoting trade and industry in Sikkim

The Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO) is the state-level institution

engaged in promoting financing and developing the tiny and

small scale industries (SSI) sector in the state

Ecotourism handicrafts and handlooms silk reeling and

processing precision engineering electronics IT medicinal

plants floriculture tea spices honey and biotechnology are

key areas identified by 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 farming and infrastructure

development due to a rich resource base and enormous

untapped potential

The Sikkim Business Summit was organised by the state in

May 2013 to showcase investment opportunities in Sikkim

Key industries in Sikkim

bull Tourism

bull Agriculture

bull Floriculture

bull Agro-processing

bull Handlooms and handicrafts

bull Hydroelectric power

bull Tea

bull Large cardamom

bull Minerals

bull Sericulture

bull Horticulture

bull Electronics

bull Pharmaceuticals

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 27: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

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 5000 species of flowering plants

515 rare orchids 60 primula species and 36 rhododendron

species presenting avenues for investment in floriculture

The existing industry is at a nascent stage and has the

potential to be developed and promoted towards an export-

oriented business

The Sikkim government has announced a technical

collaboration with floriculturists from the Netherlands and

Thailand to develop the statersquos potential in floriculture and

market cut flowers from the state globally

Sikkimrsquos most important commercial flowers are Cymbidium

Orchids Gladiolus Carnation Gerbera Asiatic and oriental

Lilies and Anthurium among others that can be grown for

domestic and export markets

The Government of Sikkim organised the 2nd International

Flower Show in February 2013 aimed at promoting the

floriculture industry in the state

Cut flower production increased at a CAGR of 370 per cent

between 2008-09 and 2012-13

Production of cut flowers (in million units)

66

200

230

210

233

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

CAGR

370

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 28: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Source Department of Ayurveda and the Ministry of Health and Family

Welfare Government of India

The agro-climatic conditions in the state support a wide

variety of exotic flora and fauna that have utility in the

medicine sector

Around 22 different medicinal and aromatic plants are

cultivated under contract farming for the National Medicinal

Plants Board

The state is rich in biodiversity and over 420 species of

medicinal plants and herbs are found throughout the state

The state has identified medicinal plants and bamboo as

among the priority sectors for investment

Sikkim has 28 varieties of bamboo offering potential for

developing 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 Longum Anti-venom and anti-

asthmatic value

Picrorhiza kurrooa Effective against malaria

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 29: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Agriculture is vital to the progress of Sikkim as more than 64

per cent of the population depends on it for their livelihoods

The Sikkim AGRISNET is an internet-based agriculture

information centre to promote scientific agricultural methods

and convert research into practice in the agricultural sector

Sikkim has a suitable climate for agricultural and horticultural

products It supports multiple crops viz rice wheat maize

millet barley urad pea soya bean mustard and large

cardamom

The surveyed arable land in Sikkim is 109000 ha of which

only 95 per cent is used this provides a vast untapped

potential for development The Sikkim government is

working on an ambitious plan to achieve 100 per cent

organic farming by 2015

A ginger processing unit has been set up at Birdang in west

Sikkim for processing and value addition of organic ginger

for marketing

Production of vegetables and fruits increased at a CAGR of

99 per cent and 112 per cent respectively between 2008-

09 and 2012-13 Source National Horticulture Board

First advanced estimates MT Metric tonnes

Production of vegetables (in lsquo000 MT)

Production of fruits (in lsquo000 MT)

980

1477

1210 1277

1430

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

157

185

258 225 240

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

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 30: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Source Load Generation Balance Report 2012-13 Central Electricity Authority

It is estimated that Sikkim has a peak potential capacity of 8000 MW and a steady 3000 MW of hydroelectric power About

28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode

As of April 2013 Sikkim had a total installed power generation capacity of 3055 MW of which hydropower generation

accounted for 1743 MW

The Teesta and Rangeet are the two major rivers with nearly a hundred tributaries The Teesta descends from an elevation of

about 3600 m to about 300 m over a distance of 175 km It can be harnessed for power generation in six stages

The 1200 MW Teesta-III hydropower project in the state is likely to be commissioned by November 2014

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 31: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

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 hydroelectric

power plants

NHPC is setting up a hydro-electric power plant (including two operating projects) in Sikkim with a generation capacity of

5295 MW

A total of 11 hydro electric power projects with a capacity of 2455 MW (of which the private sector contributed 1935 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 1200

Lanco 500

Dans Energy 96

Gati 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 520

Himagiri Hydro 300

Gati Infrastructure 71

Lachung Power Pvt Ltd 99

TT Energy 99

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 32: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

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 is

richly 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 florindashtourism 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 that

recognition of this lake would boost tourism in the state

The state has mighty scenic snow-capped peaks including Kanchenjunga the worldrsquos third highest peak that attracts a large

number of tourists from across the globe

Sikkim Tourism has won national awards including Best State in Tourism-related Programs amp Development of Infrastructure

2010 Best State for Adventure Tourism 2010 Best State for Comprehensive Development of Tourism 2010-11 and Most

Innovative and Unique Tourism Project 2010-11

Source Planning Commission Sikkim Presentation 2012-13

Union Budget 2012-13

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 33: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

The state received 421260 domestic and 18420 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 This

would attract palaeontology enthusiasts across the world

Source Sikkim Tourism Government of Sikkim Sikkim Tourism Policy 2010 minesgovin

GSI Geological Survey of India Upto September 2012

Domestic tourists (in lsquo000) Foreign tourists (in lsquo000)

3477 4219

4652 5124

6156

7000

5525

4213

2005 2006 2007 2008 2009 2010 2011 2012

165

180 178 192 177

208

239

184

2005 2006 2007 2008 2009 2010 2011 2012

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 34: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Sikkimrsquos IT policy aims to increase the use of IT in the industrial and government sectors With a high literacy rate affordable

cost strong English-speaking population improved telecommunications connectivity and favourable climate Sikkim is well

poised 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 National

Institute of Electronics and Information Technology (NIELIT) at Pakyong The IT Park will have state-of-the-art facilities that

will offer a plug and play environment and cater to the specific needs of the information technology and business process

outsourcing (BPO) segments

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 35: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

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 three

sericulture 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 (south

district)

Production of mulberry and eri cocoons increased at a CAGR of 83 per cent and 259 per cent respectively between 2008-

09 and 2010-11

Source NEDFi Databank

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 36: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Carpet weaving blanket making handloom cane and

bamboo thangka painting lepcha hat-making and angora

shawl-weaving are the various handlooms and handicraft

activities practised in Sikkim

The industry has a great potential to generate income and

employment in the state

In order to give a boost to the sector the Government of

Sikkim has been making several efforts which include

providing training to upgrade the quality and designs of the

products bringing expertise and professionals for their

marketing and supply etc

Directorate of Handicrafts and Handlooms Government of

Sikkim promotes and preserves the rich arts and crafts of

the state

The khadi and village industryrsquos total production in the state

was valued at US$ 53 million while sales stood at US$ 70

million 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)

72 82 86

53

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

102

114 113

70

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

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 37: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Tea grown in the Temi region of south Sikkim is famous by its brand name Temi Tea The tea has its unique flavour and

about 100 metric tonnes of tea is produced annually

Temi Tea Estate was established in the year 1974 over an estimated area of 437 acres The garden employs about 400

regular and seasonal workers The tea produced is exported as well as sold in local and national markets

Temi Tea Estate offers assistance to small-scale growers and producers by providing quality planting materials It also

produces some of the best clone planting materials which are distributed among small tea growers cooperatives in the state

During the harvesting season 2009-10 Temi Tea Estate produced 59665 kilograms of saleable tea

Sang-Martam Tea Growersrsquo Cooperative Society was established in 1998 under the assistance of the Temi Tea Board to

increase tea production capabilities in the state Total area of land under the cultivation of this society is around 75 acres

Major buyers of Temi Tea are Germany the UK the US and Japan Moreover the state is trying to diversify the product

range (including redesigning of more attractive packets for value addition) due to growing demand for green teas

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 38: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Source Spices Board Business Today January 2013

Provisional

The state is considered as a large cardamom epicentre of

the world

India contributes 50 per cent to total large cardamom

production in the world Sikkim is the largest producer of the

crop in India accounting for around 80 per cent of total

production

The crop produced in the state is mainly exported to

Pakistan Singapore or the Middle East and is the preferred

choice among these nations due to its distinctive aroma and

colour

Total production of large cardamom was 3234 tonnes

during 2011-12 Export of the crop increased at a CAGR of

33 per cent to 1175 tonnes in 2010-11 compared to that

during 2007-08

The Spices Board has proposed to replant 5000 hectares

and rejuvenate 2500 hectares of large cardamom in Sikkim

during the 12th Five Year Plan

Improved bhattis transformed cardamom cultivation into a

profitable venture ensuring quality livelihood to farmers and

boosting large cardamom production

Production of large cardamom (in tonnes)

Exports of large cardamom (in tonnes)

5000

11750

2007-08 2010-11

43050 36750 35400

33100 32340

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

CAGR

33

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 39: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

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 the

Government of Sikkim

Occurrences of high grade quartzite with over 900 per cent silica have been found in parts of east west amp south Sikkim

Graphite in the state occurs over parts of west and north districts Workable occurrences are located at Chitre-Dariely amp

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 are

estimated to be 03 million tonnes

The state is expected to have marble deposits of 300 million tonnes in the Chungthang Valley

Source Department of Mines Minerals and Geology Government of Sikkim

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 40: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low

manufacturing and labour costs

Sikkim is home to 14 major pharma companies which have significant investments in the state These include Cipla Sun

Pharma 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$ 5273 million in 2010-11

Source Economic Times Pharmabiz

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 41: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Cipla

Sun Pharmaceutical

industries limited

Zydus Cadila

bull Cipla is one of the worldrsquos largest generic pharmaceutical companies with presence in over

170 countries It exports raw materials intermediates prescription drugs over the counter

(OTC) and veterinary products among others

bull With more than 20000 employees the company generated revenue of US$ 15 billion over

2012-13

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

headquartered in Mumbai Maharashtra It manufactures and sells pharmaceutical

formulations and active pharmaceutical ingredients (APIs) mainly in India and the US

bull The company offers formulations in therapeutic areas such as cardiology psychiatry

neurology gastroenterology and diabetology

bull With over 13000 employees Sun Pharmaceutical generated revenue of US$ 21 billion

during 2012-13

bull 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

bull 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 13000

employees worldwide the company generated revenue of US$ 12 billion over 2012-13

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 42: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration Industrial Entrepreneurs Memorandum industrial licences

Commerce and Industries Department Permission for land use

Allotment of land

Site environmental approval Sikkim Pollution Control Board

No-objection Certificate and consent under Water and Pollution Control Act

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

Commercial taxes

Sanction of power

Energy and Power Department Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security amp Public Health Engineering

Department Water connection

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 43: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Agency Contact information

Commerce and Industries Department

Government of Sikkim Gangtok-737101 Sikkim Phone 91-3592-202 670

Website sikkimindustriesgovin E-mail industriesdeptyahoocoin

Energy and Power Department

Energy amp Power Department Gangtok Sikkim

Website wwwsikkimpowerorg E-mail pbsubbasikkimpowerorg

Sikkim Industrial Development amp Investment

Corporation Limited (SIDICO)

Bhanu Path Gangtok-737103 Sikkim

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

Website wwwsidicoorg E-mail mdsidicorediffmailcom

Directorate of Handloom and Handicrafts Director DHH Gangtok

East Sikkim Phone 91-3592-203 126202 926

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 44: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Cost parameter Cost estimate Source

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

Office space rent (2000 sq ft) US$ 500-2500 per month Industry sources

Residential space rent (2000 sq ft) US$ 100-500 per month Industry sources

Labour cost (minimum wages per day) Unskilled US$ 18

Skilled US$ 28

Ministry of Labour and Employment

Government of India

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 45: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Sikkim Tourism Policy 2010

bull To build Sikkim as an attractive tourist location and promote the sector as an economic growth

engine

bull To promote sustainable development of tourism and encourage the private sector to develop

tourism-related infrastructure and services without disturbing ecology and the environment

Read more

Objectives

Sikkim Ecotourism Policy 2011

bull To establish Sikkim as an ultimate and unique ecotourism destination offering memorable and

high quality learning experiences to visitors to contribute to poverty alleviation and promote

nature conservation

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

Criteria

Read more

Objectives

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 46: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

IT Policy of Sikkim 2006

bull To employ IT to provide better governance and generate employment

bull To improve productivity in government departments through computerisation

Read more

Objectives

North East Industrial and Investment Promotion Policy (NEIIPP) 2007

bull To promote the Northeast as an attractive investment destination through several concessions

and incentives

Read more

Objective

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 47: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

Average for the year

Year INR equivalent of one

US$

2004-05 4495

2005-06 4428

2006-07 4528

2007-08 4024

2008-09 4591

2009-10 4741

2010-11 4557

2011-12 4794

2012-13 5431

Exchange rates

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation

Page 48: Economic Times, November 2012; Aranca Research · Sikkim has 28 mountain peaks, 84 glaciers, 227 lakes, five hot springs, and eight mountain passes – making it an ideal tourist

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF

All rights reserved All copyright in this presentation and related works is solely and exclusively owned by IBEF The

same may not be reproduced wholly or in part in any material form (including photocopying or storing it in any

medium by electronic means and whether or not transiently or incidentally to some other use of this presentation)

modified or in any manner communicated to any third party except with the written approval of IBEF

This presentation is for information purposes only While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEFrsquos knowledge and belief the

content is not to be construed in any manner whatsoever as a substitute for professional advice

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation