economic times, november 2012; aranca research · sikkim has 28 mountain peaks, 84 glaciers, 227...
TRANSCRIPT
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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