SIKKIM UPDATE
Address by S.K.Sarda
President-Sikkim Chamber Of Commerce
Audience: Tibetean community of Sikkim
Venue: Hotel Tibet, Gangtok
22 June 2007
Preface:
It is a great pleasure for me and my association namely Sikkim Chamber of Commerce to deliver a talk on the economic scene of Sikkim.
Sikkim and Tibet had a long historical bonds and still Sikkimese society cherish the same.
Even in Sikkim, more than 30% of the people speak Sikkimese whose origin is from Tibetan language. We have cultural, marriage, food habits akin to each other. I am talking to my own people.
Tibetans are a hard, laborious and religious people. The Buddhism Dharma which Tibet follows also originated from India. The Buddhist circuit provides a religious get together for Indian and Tibetan people. Thus we have a family type bonding.
It is good that you desire to have a workshop where we can exchange general information on the economy and its prospects in the light of fast moving world and competitive age.
About Sikkim:
Sikkim is a beautiful State with beautiful people rich in culture, language, food preparations and soft spoken hilly people. It is a small state with 7096 Sq ft area and a population as per 2001 census= 5, 40,493. We have 4 districts, 9 sub divisions, 166 gram panchayat units, 886 gram panchyat wards, Literacy higher than 75% against an ALL INDIA average of 65%, 76 males and 60 females.
Sikkim is strategically located. On the North and east is Tibet, West-Nepal. South East-Bhutan and South West Bengal and about 100 kms from our border town Rangpo is Bangladesh. In 1975 it merged with Indian Union and currently ruled by a democratically elected party SDF headed by Dr Pawan Chamling as its Chief Minister.
The world’s second highest peak Kanchejunga is the deity of Sikkim. Sikkim remains covered by perennial glaciers, lofty mountains, lush green hills, valleys and a rich bio diversity created by the unique climatic conditions resulting from different heights ranging from 500 feet to 28000 feet from sea level. This has created different types of climate which further resulted in different vegetations, flora and fauna and further developed different life style and culture...
The Gross domestic product of the State grew from 403 crores in 1993-94 to Rs.1717 crores in 2005-2006 and now much more. The per capita GDP is now more than Rs.30,000 per person making it the 10th highest per capita income State in the country.
90% of Sikkim is electrified and 85% has rural water supply schemes. Education upto Class VIII is free and Health is also free for its people.
It is the most peaceful State of the country with very few IPC registered during the whole of 2005.
Sikkim has been given the best award in Education and Investment in the Small State Category by India Today.
Green Mission has spread throughout the State under the dynamic leadership of Sikkim Chief Minister Dr Pawan Chamling, who is also called the Green CM of India. This is the first State to have banned Plastic bags. Now other
States of the country are following suit.
The State forest cover is now at 46%.
The Planning Commission has approved a plan outlay of 691 crores for 2007-2008 and additional central assistance of 66 crores for projects of special importance.
AGRICULTURE:
More than 64% of the population depends on agriculture and related activities for their livelihood. We grow Paddy, wheat, maize, millet, pulses, oilseeds, but are deficient, hence import a lot of them.
But Dr Pawan Chamling wants to make Sikkim an Organic State which means no chemical will be used in the production of agricultural products.
HORTICULTURE:
Sikkim is tradionally a land of fruits, vegetables and flowers. The State is making steady progress in horticulture production.
It grows large cardamom and Ginger in large quantities. Ginger 36000 MT and Cardamom 3500 MT.
Sikkim used to grow 90% of the world production of Brown cardamom, but its production gone down significantly due to disease. However, the government wants to bring back the status it enjoyed.
Orange, Potato is grown in bulk.
An important benefit of Organic farming which Sikkim wants to target by 2015 is that in Western World they command good premiums and will bring higher prices and higher income to the farmers.
FLOWERICULTURE:
Sikkim’s unique climatic and topography makes available more than 4000 varieties of plants and 450 species of orchid. A model floriculture garden has come up near Namli and an orchid centre at Pakyong. Cut flowers have a great future.
INFRASTRUCTURE:
ROADS
Due to hilly terrain, loose soil, infrastructure i.e., roads are still to be fully developed. Around 2000 Kms of road is looked after State PWD and another 900km by BRO
Govt of India has sanction 1600 crores for creating a double way lane from Nathu la to gangtok and then to Siliguri and it will be completed in the next three years.
RAILWAYS
As per the opinion of Railway Minister who visited Gangtok recently, survey on Sevok Rangpo rail link is about to complete. Demands are also being made to bring railway network upto Nathu la. The Chinese on their side has already begun the work on railway link from Lhasa to Gyantse and then to young and they hope to complete in 3 years.
AIRPORTS
Land for the Pakyong Airport has been acquired. The Airport Authority of India will call for the tender shortly to construct the airport at Pakyong which will be used by smaller aircrafts. The project cost is 340 crores.
TELECOMMUNICATINS:
Sikkim has the highest density of telephone network among the Indian States. In 2004 the landlines connection were around 50,000. Mobile services have grown rapidly with almost all private operators being in Sikkim. Now there are 35000 mobile connections.
In the next five years more than one lac connections are expected with each home having one connection. Broad band services have been launched now and more than 500 connections have already been taken. E mail is taking rapid uses.
Community Information centers have come up in almost all sub divisional headquaters.
POWER:
Sikkim has the potentiality to develop 8000 MW of power from Hydro projects. Tessa Stage V which will generate 510 MW will become functional by this year end. It costed 3000 crores to NHPC. 29 MOUs for power projects are signed which will lead to investment of more than 20000 crores in the next five years. Sikkim will then export Electricity to Indian States.
INDUSTRY, TRADE & COMMERCE
There are more than 1500 units which have been granted registration till now. But very few of them are functional.
Under State PSU:
Sikkim Time Corporation
Sikkim Jewels
Sikkim Flour Mills
Temi Tea
Fruit preservation Factory-singtam
Joint sector:
Yukson breweries
Private sector
Sikkim Distilleries
Wai Wai by chaudhary group of Nepal
Mount Distilleries
Ayurvedic units
Cadila,Torrent,medicine companies 18
Sikkim Biscuit,Soft ware development factory
Ink for currency notes at majitar,Godrej Soaps,
Iron ore processing unit at rangpo
INCENTIVES
More on pipelines due to Excise and Income tax free for 10 years 1.4.2007.
30% capital subsidy
Transportation subsidy
Lower rate of interest on capital
The reasons for the failure can be many:
Shortage of Capital
Shortage of skilled labour
Old technology
Lack of management skill
Marketing and pricing problems.
And many.
Potential areas:
The whole state has been declared industrial area. Land can be acquired on a 30 years lease.
The following areas are the most vital priorities of the State in terms of investment opportunities
Educational Institutions
Professional educational institutions like medical/IIT/engineering/IT/management
( Sikkim Mnapial University) SMIT-SMIMS & sikkim unuversity
Banking financial institution
Hydel power
Medicinal plants & herbal medicines- Tibetan medicines
Organic farming
Trading activities within
Nathu la trade
Transport and communication
Biotechnology
Health
Manpower training institute
Horticulture
Floriculture
Mountering and trekking
Tourism-Hotel and allied
Handicrafts
TOURISM:
Natural scenes Kanchenjunga/ mountains/glaciers/valleys/waterfalls/lakes
Man made locations
135 feet statue of Gur padma Sambhava at namchi,
Satya Sai Seva Dharma Kendra-Daramdin
12 Jyotilingas centre at solophok near Namchi
Swarg Jane Siri in south sikkim
Village tourism
Food festivals
Monasteries
Rock garden at Rimbi
Water sports at singtam/rangpo over river teest
Tasangu and Yumthang
Helicopter service to have a glimpse of Himalayas.
Sikkim as a Brand name
Tourist flow:
1981 21854
1991 67547
2001 154680
2005 268272
2007 300000
Tourists guides, tourist cars, hotels, tour & travel agencies,
Hotel & Hospitality management school at tadong
Thus we see that Sikkim is now passing thru a growth phase under the dynamic leadership of visionary person like Dr Pawan Chamling, Chief Minister of Sikkim.
Opportunities will abound. We have to get ourselves trained with knowledge, skill and be competitive, honest, customer friendly, qualitative above all behave like a good human being.
Let us know briefly about the laws:
It is assumed that all citizens should know about the law of the land.
Thus it is your responsibility to know about laws
Laws governing Trade:
Trade License from LSG
Food License from Health Dept
Medical License from Drug & Health Dept
Weights & measures from controller of weights.
Labour license with Labour dept
Professional tax
Cess
VAT registration
CST registration
Trade Pass- for Nathula Trade for first five years upto 2011
Child labour prohibited below 14 years
Income Tax registration
Laws governing Industry
Registration with Industry dept
Excise and customs Act
Trade license
Food license
Labour dept
Weights & measures
Medical license for drug manufacture
Professional tax
CASs
VAT and CST registration
Service tax registration exemption upto 8 lacs
Income tax registration
Laws governing agriculture/horticulture
Warning:
You cannot sell any food product which has no PFA registration
You must invoices for all products that you buy/sell
You have to issue cash memo for sale above Rs.20/-
You have to Pay VAT
Child labour below 14 years prohibited for employment
Minimum wage Rs.100/-
You have to procure all licenses as mentioned above as per the items you deal.
You have to file monthly tax payment/quarterly returns/annual returns.
You have to keep books of accounts
You must also know what you earned/what you lost/
All food products must have batch no/manufacturers name and address/qty/ingredients/MRP
Types of business
Retail shop
Wholesale shop
House to house sale
Hotel running
Vehicle Repair shop
Taxi service
Truck and transportation
Tailoring
Industry:
Tyre retreading
Medicine manufacturing
Flour making
Noodles and agarbatis
Khadas
Silk
Pickles/squash/sauce/etc
Export/import:
IEC code from DGFT, Kolkata
Regn with Customs/ Excise/Service tax
Types of Organization:
Sole Prop
Partnership
Private Limited Co
Public Limited Co
Cooperative Society
I tried to cover what best I can gather. Still many things have to be learnt.
I thank you for the patient hearing.
S.K.SARDA
PRESIDENT, SIKKIM CHAMBER OF COMMERCE
NEW ARTICLE ON SIKKIM:
Sikkim is sheer magic. This is not just the most beautiful place in the world but cleanest and safest too. If once the charms of the State were limited to mists, mountains and colourful butterflies, they are now complimented by tangible development and progress. With its unique culture and natural landscape, Sikkim is a picture of perfection and pristine purity. Nestled in the Himalayas and endowed with exceptional natural resources, Sikkim is a hotspot of biodiversity and development. Though small in size, yet Sikkim has been identified world over as an important repository of germplasms of unknown dimensions. Perhaps, there is no part of the world, which offers a spectacular scene with every turn of the road as Sikkim. Though land-locked, Sikkim is one of the most beautiful and strategically important state of the Indian Union. Bounded by foreign nations on three sides, it shares its boundary with the sister state of West Bengal. Surrounded on three sides by precipitous mountain walls, Sikkim appears as a small rectangular Gem. Sikkim is like a stupendous stairway leading from the western border of the Tibetan plateau down to the plains of West Bengal, with a fall of about 5,215 metres in 240 kms. Sikkim, in the west is bound by the north-south spur of the Great Himalayan Range which includes the world's third highest peak, Khangchendzonga and down to its south is Singalila ridge. In the north it is bound by Dongkia range and also partly includes the Tibetan Plateau. In the east it is bound by the Chola range. The average steepness is about 45 degree. Sikkim is the main catchment area for the beautiful river Teesta, which has its main source from Chho Lhamo lake in the north and is further strengthened by many streams and rivers of which Tholung, Lachung, Great Rangeet and Rangpo are important drainers. It also has about 180 perennial lakes, among which Khachoedpalri, Gurudongmar, Chho Lhamo and Men Moi Tso are some of the most scenic. Dominating both legend and landscape of Sikkim is the mighty Khangchendzonga. Known to outside world as Kanchenjunga, it is the third highest peak in the world. But to the Sikkemese it is much more than a mountain: Khangchendzonga is the Guardian deity, a country God whose benign watchfulness ensures peace and prosperity for the land. The five peaks of Khangchendzonga are the five Treasures of the Eternal Snow, a belief beautifully interpreted by the great Lama Lhatsun Chenpo: “The peak most conspicuously gilded by the rising sun is the treasury of gold, the peak that remains in cold grey shade is the storehouse for silver and other peaks are vaults for gems, grains and the holy books.” Each of the five peaks is believed to be crowned by an animal—the highest by a tiger and others by a lion, elephant, horse and the mythical bird Garuda. Along with the Guardian deity, the Nepal Peak, Tent Peak, Pyramid, Jonsang, Lhonak, Pahunri etc. and glaciers like Zemu, Changsang, Teesta, Changme are also important. The most important passes are Jelep-la, Nathu-la, Cho-la and Thanka-la in the east; Donkiua, Kongralamu and Naku in the north and Kanglanangma and Chia Bhanjyang in the west.The divine status of the mountain, sanctified by legend, has been made enduring by the widespread worship of Khangchendzonga by all the people of Sikkim - Lepchas, Bhutias and Nepalese alike. The God is depicted as being red of colour, armed and mounted on a white snow lion; offerings are made to this majestic presence, ceremonies are held in his name and dances consecrated to him. Pang Lhabsol is one of the famous festivals of Sikkim which is a thanks giving celebration in honour of Sikkim’s presiding deity, Khangchendzonga. Dancers portray the guardian deity, its supreme commander Yabdu and the God Mahakala. It is a warrior dance and the dancers are chosen for their physical strength, quick reflexes and skill swordsmanship.Now a word about the origin of the term Sikkim itself. The various ethnic groups have their own nomenclature. As far as the Lepcha and the Bhutia names are concerned, Waddel has it that, " the Lepchas call it Nelyang or 'The place of caves'. Lepchas also call it Myel Lyang, which means “the land of hidden paradise or the delightful region or abode". While the Bhutias call it Beyul Demazong or “the hidden valley of rice."” Another version says that "Tensung Namgyal married three wives, a Tibetan, a Bhutanese and a Limbu girl. The Limbu girl, daughter of Limbu Chief Yo- Yo- Hang, brought seven maidens with her. These maidens were married into leading families of Sikkim. These Limbu maidens who had come to Sikkim for the marries' called the place 'Sukhim' or "bride's new house", comfortable home. The Nepalis who came to Sikkim could not relate to Limbu pronouncement and thus corrupted the name to Sukkhim which underwent further distortion.
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