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GOVERNMENT OF SIKKIM

Memorandum

Submitted

to

Shri Narendra Modi

Hon’ble Prime Minister of India

At his Official Residence, 7 Race Course Road, New Delhi

By

Shri Pawan Chamling

Hon’ble Chief Minister

Of Sikkim

On

9th June, 2014 at 5:30pm

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Challenges and advantages in Sikkim

Sikkim is a mountainous border State. It is a part of the Eastern

Himalayas, and across its entire length, the Himalayas are narrowest here,

spanning a total width of just 80 km, resulting in an extremely steep

terrain and telescoping of the various eco zones. It has ten mountain peaks

that rise above 7,000 metres, 84 glaciers and 315 glacial lakes. Almost the

entire State is hilly and mountainous, with elevations ranging from around

300 to 8,598 metres. For the most part, it is difficult to come across vast

areas of flat land. Rocky and precipitous slopes make agriculture,

transportation and communication difficult. Major challenges for public

administration are posed by the State’s geo-physical characteristics.

Sikkim’s physiographic set-up makes the lives of people extremely

vulnerable to earthquakes and landslides. The region has experienced

relatively moderate seismicity, with 18 earthquakes of magnitude 5 or

greater over the past 35 years. The seismic shaking often induces

instability in the hill slopes, which causes frequent landslides and rock

falls, especially in the epicentral area. The earthquake of 18th September

2011, with a magnitude of 6.8, caused the worst damage in recent years.

Being a mountainous region brings with it other disadvantages as well.

Land is a highly scarce resource in Sikkim. Only 11 % of the total

geographical area, at an altitude of less than 2,000 metres, is available for

cultivation. Furthermore, the mountainous terrain and the highly dispersed

population greatly add to the costs of providing social services and

infrastructure.

Due to its small size, the State has practically no economies of

scale. Almost all types of construction material need to be brought in from

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outside the State. Transportation is not only difficult and hazardous, but

also adds substantially to costs of production of goods and services.

Similarly, establishing systems of support, supervision and performance

monitoring become complicated and expensive as people need additional

resources and time to travel for many days to visit remote areas. The road

network remains vulnerable to frequent natural calamities, with a large

portion getting washed out during the monsoons. Connectivity has also

been hampered by the absence of telecommunication services, especially

in remote hilly areas. The inability to get mobile phone and internet

connectivity has been a limiting factor placing many of the communities

at a disadvantage. The unique geography, geology and climate pose

unique developmental challenges bringing in mountain specific

constraints in sustainable development. The State has the third highest

and steepest landscape globally. The fragile terrain, weak geology

and heavy rainfall making the State prone to natural calamities. The

heavy rainfall concentrated in six months, leads to a compressed

working season of 6 months. There is an acute scarcity of land for

development as 84% of geographical area is classified as Forest Land.

The State is remotely located and coupled with poor connectivity. New

threats of climate change and water security are also emerging.

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The Himalayas are considered as the natural “water

towers” as its glaciers hold the largest freshwater reserve outside the

polar ice cap. The Himalayan range encompasses about

15,000 glaciers, which store about 12,000 km3 of freshwater. Some of

the world's major river systems like the Indus, Ganges and the

Brahmaputra originate in the Himalaya and their combined drainage

basin is home to some 1.3 billion people. Sikkim located in the Eastern

Himalaya is a land of pristine environment with clean air, pristine forests,

sparkling streams and aquamarine lakes, all teeming with rich

biodiversity. Forest is a vital resource for socio-economic development of

the State as it constitutes the largest land-use category. The forests of

Sikkim sustain key economic benefits emanating from ecotourism,

hydel power and vital environmental services such as water, food and

ecological security. The human development, well being, happiness

and quality of life of not only the people of Sikkim, but also the

teeming population in the Gangetic plains in the downstream is

critically linked to the State’s forest resources and therefore

maintaining ecological balance, protecting forest cover and

conserving biodiversity is a key to the sustainable progress of the

region. In this direction the State has taken exemplary strides by

making the forests free from grazing thereby significantly increasing

the quality of forest cover and wildlife habitat, making the human

habitations plastic-free and

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Open-defecation free, the farming systems organic and having an

overall eco-friendly model of development, with a record one third of

the area kept aside as sacrosanct under sanctuaries and national park

under the protected area network.

The Mount Khangchendzonga (8,598 m), globally the third

highest mountain, and the highest peak in the country and revered as a

guardian deity, has influenced and nurtured a unique ecosystem - the

Sikkim Himalaya, which constitutes one of the 34 global biodiversity

hotspots. The unique terrain, climate and biogeography of the State have

resulted in the sustenance of varied forest ecosystems in close proximity.

The diverse forest types include deciduous sal, wet hill forests, dense oak

forests, extensive conifer forests and unique Rhododendron thickets

giving way to rolling alpine meadows. Ecosystems range from humid

tropical valleys to temperate mountain habitat, alpine meadows and

trans-Himalayan cold desert. It is a veritable nature’s Noah’s Arc

teeming with biodiversity, housing nearly half of the nation’s bird

diversity, wild trees, orchid and Rhododendron wealth and one third

of the country’s flowering plants. The State possesses about 31% of

the mammals, 45% of the birds and 50% of the butterflies of the

country.

In many aspects, the State has been a leader in the environment

sector, having not only successfully pioneered nature conservation

polices, but also having implemented them successfully.

A unique landscape approach to biodiversity conservation has been

adopted which envisages healthy forests, eco-villages and vibrant

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towns. 82% of the geographical area of the State has been recorded as

forest area and classified as reserve forests and protected forests, and

diversion for non-forestry purposes is strictly regulated. The forest

cover is continuously increasing and presently stands at 47.34%. This

is despite having large tracts above the tree line in the alpine zone having

glaciers, snow capped peaks and alpine meadows. Considering areas

below the tree line (4000 m), the forest and tree cover has grown to as

much as 85% of the area. Nearly, one third of the land area has been

directly conserved by establishing an extensive protected area network of

sanctuaries and national park. This is the highest in the country in

percentage terms, with the national average being less than 5%. Elements

of human-scapes such as water and sanitation, sustainable farming

using organic methods, ecotourism and urban renewal in towns has

received a lot of focus. Toilets were constructed in mission mode and

all the villages made open defecation free so that Sikkim could

become the first and only Nirmal Rajya in the country.

The paradigm shift in the development model leadership has

resulted in several path breaking initiatives like the Harit Kranti Dashak,

Pokhri Sanrakshan Samitis, making forests cattle free, plastic ban, Smriti

Van, ban on green felling, conservation of medicinal plants, State green

mission, ten minutes to earth, organic mission, achieving open defecation

free status - Nirmal Rajya, Dhara Vikas, protection of heritage trees,

protection of vultures, wildlife, climate change adaptation, environmental

education, urban renewal, ban of slash and burn and several others which

have ensured that this rapid growth has not been at the cost of the natural

capital. The biological wealth of the State has been further preserved and

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the outcomes in the form of increase in forest cover, increase in dense

forests, higher awareness levels, ground water recharge, open defecation

free status and several others is there for all to see. While initially these

initiatives were government driven backed by notifications and legal

provisions, over the years it has become a way of life for the people and

many of these initiatives have now transformed into people driven

programs and have now become the people’s agenda.

Need for Fiscal Compensation

The enormous 2,500 kms of Indian Himalayas house some of

the most dense and rare bio-diversity reserves on earth.

Unfortunately, the people who live in these vast expanses of

mountains are often forgotten. But they have started to voice their

concerns and we are hopeful that the Government of India will take

notice.

Several institutions and NGOs have repeatedly pointed out that

the Planning Commission does not even take specificities of mountain

terrains into consideration in their Five Year Plan drafting exercise. It was

only when the 12th

Plan was being finalized that a working group on

mountains was constituted.

The Indian Himalayas which are our water towers stand tall. They

feed the myriad of rivers that provide water security to millions

of people downstream. Yet, today we have enough evidence to believe

that these water towers are running out of ice as glaciers continue to melt.

Consequently, less water will flow through our rivers. We need

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comprehensive climate change legislation to monitor and arrest the

depletion of our glaciers.

Ecological issues aside, the Himalayas also bear great geopolitical

importance. The Indian Himalayan Region shares international

borders from West to East with Pakistan, Nepal, China, Bhutan,

Myanmar and Bangladesh raising security concerns. With the right

approach, there are several opportunities to be explored as far as trade is

concerned.

Tourism has always been the most important economic

activity in the Himalayas. Scores of tourists from the plains ascend to

the cooler climes of our mountain cities. But the fact remains that we

simply cannot sustainably develop our mountain cities with one-size-fits-

all set of urbanization policies. Transportation and waste management

are burgeoning problems that need immediate solutions. But they

may not be found without the right policy action and support from

the Government of India. For example, roads. No modern

technology has found its way into road construction in the mountains.

Dams and hydropower are other contentious issues, and must be

resolved sensitively at the earliest.

All States in India have States specific requirements to meet

their developmental aspirations and targets of which poverty alleviation

and the creation of infrastructure command high priority. However,

States such as those in the Himalayan region are at a disadvantageous

situation in terms of difficult terrain, severe weather conditions, large

forest land, dispersed habitations, small and underdeveloped

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markets, long international borders, poor connectivity and

inadequate general infrastructure. The cost of delivery of public

services in these States is higher compared to other States due to their

typical topography. These acts as constraints in terms of development

compared to other States. With the procedures for environmental

clearances being generally identical for all States, the States having a

large forest cover find it difficult to get environmental clearances, even

for infrastructural projects which hamper their developmental initiatives.

Some of the States have represented to the Government of

India that it is not appropriate to apply the same yardstick for statutory

requirements and while considering Central assistance to the States which

have a large forest cover. But funds released under Finance Commission

grants and Compensatory Afforestation and Fund Management

Authority (CAMPA) funds have been inadequate for the State

Governments to take up major infrastructure projects.

In view of this, special compensation for the Himalayan States would

be a welcome gesture. This would result in creating valuable

economic and social assets on the ground and also relieve the stress

on the general finances of the State Governments. While due emphasis

on environment needs to be continued, relaxation in norms should be

made for Himalayan States. The procedures which are in place for

environmental clearances of various projects in the country are

generally identical for all States. This is a constraint for States which

have large forest lands or hilly terrains. There is a need to take a view

on the relaxation of forest clearance norms for Himalayan States .Perhaps

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a Joint Concurrent approval mechanism between State and Centre needs

to be put in place as Forest is a Concurrent subject.

Requirement of Central Agency for Hill States

The problems being faced by the people of the Himalayas would

therefore be addressed with new policies in the form of a separate Central

Agency, which will be sympathetic towards the people of the region and

also give due importance to this huge area, which is Nature’s endowment

to the Country. We hope that the possibility of having a separate Agency

to deal with the Indian Himalayan Region exclusively will soon be set up.

Development Tempo vis-a-vis Narrow Resource Base

It is my privilege to inform you that in the last Annual Plan

discussions in 2013, Sikkim was appreciated for achieving a high growth

rate of 22.8% at 2004 -05 prices. The comments of the Planning

Commission are reproduced below:-

“ The GSDP of Sikkim was targeted to grow at a compounded

rate of 6.7% during the 11th

Plan. However, it has registered a growth

rate of 22.8% at 2004-05 prices (Agri 3.6% Industry 46.4% and services

12.5%) as per CSO. The impressive growth of Sikkim is attributed to

commissioning of power projects, strengthening of small scale industries-

primarily pharmaceutical industry attracted by cheap power, accessibility

to market and increasing financial services (banking & insurance) during

the Eleventh Plan period. The Agriculture Sector, particularly floriculture

and horticulture has also performed relatively well during the Plan

period. The good performance in the areas like Transport &

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Communication, Banking & Insurance, Trade & Commerce, Hotel and

Restaurant, Real estate and Business Services has been able to generate

employment both in the public and private sector. There has been a steady

growth in the per capita income during the plan period. This performance

is attributed to 16.4 percent growth in 2008-09 and 31.9 percent in 2009-

10 due to completion of power projects during these years and increase in

salary on account of implementation of the recommendations of the Sixth

Pay Commission. Further, the agriculture sector is expected to record

over 4.5% growth during the same period as against the Eleventh Plan

target of 3.6%. The sector wise targeted growth rates in the 12th

Plan are

4% for Agriculture sector, 8% for the Industry sector, and 10% for the

Services sector. The targeted growth rate of GSDP for the 12th

Five Year

Plan is 8.4%.”

“The State’s own tax revenue is mainly dependent on sales

tax/VAT. As a percentage of GSDP, it has been coming down and was

3.50% in 2011-12 and is expected to be around the same level in 2012-13.

The power sector receipts have not been increasing significantly even

though it is positive. The Balance from Current Revenues (BCR) is

deteriorating due to continuing higher growth in non-plan revenue

expenditure every year even though the State has been making efforts to

improve the receipts in spite of difficult conditions. The outstanding

liabilities as a percentage of GSDP are 29.52% inn 2011-12 and were

anticipated to come down marginally in 2012-13.”

Sikkim today is one of fastest developing States in India

with a focus on sustainable development. To keep the developmental

tempo in the State, we would like to make a humble request of one

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time grant of Rs. 5000 crores. Various infrastructure projects have also

been sanctioned by the Central Government and Ministry of Development

of North Eastern Region including North Eastern Council. All these

projects require State Share for which the State has not been able to fully

provide the required funding due to limited resources and earmarking of

funds under Additional Central Assistance and Special Plan Assistance.

The shortfall in State share comes to approximately Rs 100 crores.

Moreover, a small State like our’s has to bear the administrative and

establishment cost of various mandatory Institutions and Organizations in

the State. A one- time grant at this juncture would help us a great

deal in our path to development. Some of the sectors where we would

like to focus are:-

1. Energy & Power Sector

With limited resources and other revenue generation avenues,

the State‘s potential for hydro power generation due to its abundant

water resources needs to be tapped to the optimum. Presently, a total

of 10 hydro power projects have been awarded to various

Independent Power Producers with a total capacity of 2622 MWs.

However, we have not been able to contribute to the Equity funding in

these hydro electric projects and at least Rs.1000 crores is requested as

Equity funding. In addition, a comprehensive scheme for the

Strengthening of the Transmission and Distribution System in the North

Eastern Region and Sikkim has been proposed by the Ministry of Power,

GoI wherein the total project cost has been estimated at Rs.1569.60 crores

for Sikkim, out of which Rs.458.25 crores have to be borne by the State

Government by way of land compensation, contingency and

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consultancy charges to Power Grid Corporation of India Limited.

The

project may kindly be considered as 100% Central funding.

To fully implement the scheme without hurdles, the State requires a

total of Rs.1971.25 crores for Equity funding and State share in the

Strengthening of the Transmission and Distribution System for evacuation

of power, the breakup of which is given below:-

Abstract

Sl. Name of Project Requirement of Funds

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Total = Rs 1971.25 crores

In all hydro projects above 100 MW capacity, the State

Government has the option to infuse equity up to 26%. At present the

State Government has to contribute equity into the following Hydro

Projects:-

Sl.

No.

Name of Project Capacity

in MW

Cost of

Project in

Rs Cr.

Equity

Contribution of

Govt. of

Sikkim in Cr.

1. Teesta Stage-III Hydro

Electric Project

1200 11382.00 845.54

2. Teesta Stage-VI Hydro

Electric Project

500 3200.00 254.00

3. Rangit Stage-III Hydro

Electric Project.

120 581.47 50.00

No.

1. Generation Projects Rs1300.00 Cr.

3. Comprehensive

scheme for

strengthening of

Transmission &

Distribution system in

NER & Sikkim,

SIKKIM PORTION

Rs 458.25 Cr.

4. Accelerated Power

Development and

Reforms Programme

(APDRP)

Rs 34.00 Cr

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Hence the total requirement for equity contribution is Rs.1149.54 crores

B. The State Government with the objective to speedily develop the mini,

micro and small hydro potential of the State set up Sikkim Power

Development Corporation Ltd. in the year 1998. However, due to funding

constraints the development in the sector has been very slow. The details

of the projects which are under construction are as follows:-

Sl.

No.

Name of Project Capacity

in MW

Cost of

Project in

Rs Crores.

Funds required by

Govt. of Sikkim

in Crores.

1. Rellichu Hydro

Electric Project

12 MW 89.90 36.11

2. Chatten-II Hydro

Electric Project

3 MW 30.40 20.70

3. Mangley Hydro

Electric Project

2 MW 15.40 12.06

4. Lachung Hydro

Electric Project

3 MW 13.90 10.88

5. Rongli Hydro

Electric Project

5 MW 37.70 30.27

Total requirement of funds for SPDCL would be Rs 110.02 Crores.

The total requirement of funds for the Generation sector would be to a

tune of Rs 1259.56 Cr.

Say Rs 1300. Crores.

TRANSMISSION SCHEMES FOR THE EVACUATION OF

POWER FROM CHUZACHEN HEP RATED: 99 MWS AND IPPS

LOCATED IN THE RANGIT BASIN.

CONSTRUCTION OF DOUBLE

CIRCUIT 132 KV (ZEBRA

CONDUCTOR) TRANSMISSION LINE

Amount ₨85 Crores

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FOR THE EVACUATION OF POWER

FROM CHUZACHEN HEP RATED:

99MWs TO THE LILO POINT AT

PHONGLA, SOUTH SIKKIM AND

CONSTRUCTION OF TWO 132 KV

LINE BAYS AT THE PGCIL

132/220/400KV POOLING STATION

AT NEW RANGPO.

The Energy & Power Department has to

construct the power evacuation system for

the Chuzachen HEP rated: 99 MWs as per

the implementation agreement signed

with Gati Infrastructure ltd. The total

length of the transmission line is 25 Kms

and is designed for Double circuit Zebra

Conductors. The line bays are GIS bays

and the total cost of the project has been

worked out to ₨85 Crores.

CONSTRUCTION OF DOUBLE

CIRCUIT TWIN MOOSE 220 KV

TRANSMISSION LINE FROM

LEGSHIP 220 KV POOLING STATION

( STATE GOVERNMENT ) TO THE

NEW MELLI 220 KV (PGCIL )

POOLING STATION AND

CONSTRUCTION OF 220/132 KV

POOLING STATION AT LEGSHIP.

Due to severe ROW constraints, the State

Government has been asked to construct a

pooling station at Legship to pool the

power from the IPPs coming up in the

Rangit Basin and evacuate the same to the

220 KV PGCIL pooling station at New

Melli. The total power to be evacuated is

expected to be around the range of 300 -

500 MWs. The length of the transmission

line is 10 Kms and the system has been

₨94 Crores

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designed for double circuit twin moose

conductors. The GIS bays at New Melli

PGCIL pooling station will also have to

be constructed by the State Government.

The total project cost has been calculated

at ₨94 Crores.

Grand Total ₨179 Crores

COMPREHENSIVE SCHEME FOR THE STRENGTHENING OF

THE TRANSMISSION & DISTRIBUTION SYSTEM IN NER &

SIKKIM; SIKKIM PORTION:

BRIEF HISTORY:

The development of the power sector in the NER and Sikkim was

brought out in the “Pasighat Proclamation on Power” released during the

first Sectoral Summit of the North Eastern Council at Pasighat in

Arunachal Pradesh on January 17, 2007.

Pursuant to the recommendations of the Pasighat Summit, a Sub

Group was constituted under the Chairmanship of Member (Power

System), Central Electricity Authority (CEA) on the Transmission, Sub-

Transmission and Distribution related issues in the North Eastern Region

and accordingly a Comprehensive Scheme for the strengthening of the

Transmission & Distribution System in NER & Sikkim was prepared by

CEA in consultation with PGCIL and the concerned States.

In the meeting taken by the Member, Planning Commission on

February 24th

2009 and meeting of PIB/EFC chaired by the Secretary,

Department of Expenditure (GOI) on March 24th

2009, it was decided that

the DPRs of the scheme would be prepared by PGCIL( Central

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Transmission Utility ). The DPRs were prepared and submitted by PGCIL

to MoP on 6th

January 2010 and 6th

July 2010.

Highlights of the Scheme:

1. The project for Arunachal Pradesh and Sikkim would be taken up

with funding through Non-Lapsable Central Pool of Resources –

Central (NLCPR-CENTRAL) of the Ministry of Doner,

Government of India. After completion, the project would be

transferred to the Arunachal and Sikkim State Governments

respectively and the O&M of the system shall be carried out by

them.

2. The Guidelines for NLCPR-CENTRAL clearly States that the

implementation of the schemes shall be done by the Central

Ministries/Departments.

The break up of the project cost is as given below:-

Total cost of the Project Rs 569.6 Crores

Cost of land compensation

compensation/R&R/Forest

Rs 231.48 Crores State Govt.

share

Contingency @ 3% Rs 40.29 Crores State Govt.

share

Consultancy charges @ 12%

of PGCIL

Rs186.48 Crores State Govt.

share

Cost towards materials, Rs1111.35 Crores Central Govt.

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erection and Commissioning share

Total State Government share Rs 458.25 Crores State Govt.

share

The State Government will have to provide Rs 458.25 Crores towards the

project.

ACCELERATED POWER DEVELOPMENT AND REFORMS

PROGRAMME ( APDRP ):

The Government of Sikkim under the Energy & Power Department

initiated various projects under APDRP for augmentation, strengthening

and reforms under transmission & distribution schemes. Various schemes

were also initiated under the State Government funding. However, with

the withdrawal of the APDRP schemes by the Central Government,

several vital schemes were left incomplete and this also reflected on the

schemes initiated by the State Government, which also fell behind.

Hence, there is a total outstanding of ₨35 Crores against various

incomplete schemes under APDRP in the State of Sikkim. The

completion of these schemes would provide a much needed boost to the

transmission & distribution systems of the State of Sikkim.

Assistance to the Energy and Power Sector would help the State in

generating revenue from the power sector.

CONNECTIVITY ISSUES

2. Pakyong Greenfield Airport

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The construction of the Greenfield Airport at Pakyong started

in October, 2009 and the initial date of completion was January, 2011.

The project got delayed due to various problems such as, acquiring

land, connectivity, monsoons and the earthquake of September, 2011

which caused major damages to the State. Consequently, the revised

date of completion was December, 2014. The construction work received

another jolt when some houses were affected by vibrations caused by

drilling and cracks were caused to the houses due to heavy load factor.

The initial damage assessed cases of 17 affected houses have been taken

up by the Airport Authority of India (AAI). 144 additional houses have

been assessed as damaged, bringing the figure to 161 houses. The

compensation demanded by the public for the damaged houses is quite

substantial. Moreover, Rs 50 crores be inbuilt in the project cost of AAI,

which is implementing the project. Such assistance would help in taking

the project on a war footing for its early completion. Once the Airport

becomes fully functional the major problem of connectivity we face will

be solved to a large extent.

3. Road Connectivity.

The absence of a rail network and commercial air services in

the State makes roads the only means of access to the State. National

Highway -10 (Previously NH-31 A) is the only road link of Sikkim with

the rest of the country. Unfortunately, the topography and climate of

the region makes the terrain vulnerable to landslides and erosion,

and thus every monsoon the roads are ravaged, facing a lot of wear

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and tear and are in a State of continuous disrepair. This causes

tremendous hardship to the movement of goods and passenger traffic,

both along the National Highway as well as on the State Highways

and other roads.

The total length of road maintained by the State Government is

2170.52 Km out of which 178.71 Km is State Highways, 745 km is Major

District Roads and 1247 Km is other roads. The State Highways connect

the State Capital with the District Head Quarters, Major District Roads

connect District Head Quarters with important towns in the districts and

the other district roads connect villages with the important towns. Most of

the roads connect important tourist destinations. The up-gradation and

development of these roads play an important role in enhancing the

tourism industry in the State.

A. State Roads.

The State Government’s top priority is to provide good

road connectivity in the State for improvement of socio economic

condition of the people by upgrading the existing Major District

Roads to Intermediate Lane with priority on enhanced load carrying

capacity. The major priorities of the State Government are as under:

a) Up-gradation and strengthening of all Major District Roads to

intermediate lane.

b) Strengthening, rehabilitating and replacing weak bridges with higher

load carrying capacity bridges.

c) Up-grading, strengthening and resurfacing of other existing district

roads.

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d) Converting all road networks to green and eco-friendly roads.

Other important connectivity to the State

Sikkim being a border State, most of the roads is being used

by the Army. There are a few other proposals which need to be

taken up on priority from the strategic point of view as well. Up-

gradation/construction of these roads is felt essential by the Indian

Army for their strategic use as an alternate means of connectivity

to their establishment which are:-.

a) Provide two-lane connectivity to the upcoming Greenfield

Airport at Pakyong from Ranipool and up to Rhenock with

length of 40 Kms. The road is proposed to be taken by the State

Government under SARDP-NE funding.

b) Construction of a parallel two-lane alternate National Highway

along the opposite side of the existing NH-10 (other bank of

river Teesta) from Gangtok up to Sevoke with a length of 92

Km. The Ministry of Road Transport and Highways has been

kind enough to approve the proposal for preparation of Detailed

Project Report (DPR) from Melli to Singtam under SARDP-

NE. The preparation of DPR is in the final stage which will be

submitted by the end of August, 2014. The remaining stretch

between Singtam and Ranipool (22 Km) also needs to be taken

up in priority. The stretch in West Bengal side also needs to be

taken up in priority.

c) Up-gradation of Singtam-Sirwani- Khamdong- Lingzey-Tintek-

Dikchu with length of 50 Km.

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The Army has requested for development of this road for

movement of higher axel load vehicle. This road upon

development shall be an alternative route for the Army as well as

benefit the civilians. This is an existing road and is a stretch about 50

kilometres and development to 2-lane standard with replacement of

bridges to 70R loading will help in boosting the Tourism Industry in

the State.

Strategic Roads:

The roads which are required for better connectivity to the Border

areas

Construction of 2- lane from Bagrakote – Lava – Algarah – Rhenok -

Menla (Nathula Border) having a length of about 150 Km.

Construction of an alternate double lane Highway, from West Bengal to

Sikkim, mainly for strategic purposes. Out of the three alternatives, the

final stretch approved by the DG Forest was from Bagrakote – Lava –

Algarah – Rhenok - Menla (Nathula Border). This road has been proposed

to be taken up by the BRO and the NHAI (National Highway Authority of

India).

A: Rural Connectivity Roads under Pradhan Mantri Gram Sadak

Yojana:

This programme was conceived during the regime of the

previous NDA Government under Shri Atal Bihari Vajpayeeji with a

stated vision of providing rural connectivity. During the 1st Phase, the

total number of habitation covered under the core network was 410 out

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of which 329 has been sanctioned by the Government of India. The

total proposed length to cover the above was 1800 kms out of which

1422 Kms has been sanctioned with a total cost of Rs 683.00 crores.

The State Government has submitted a revised proposal to

cover 501 habitations with the core network under PMGSY. The

remaining 172 habitations under the core network are yet to be

covered. It is requested that the Government of India may look into the

matter favourably. Moreover roads under this flagship programme

which has previously been commissioned needs routine maintenance

work so as to prevent complete deterioration. Accordingly, it is

requested that Government of India may like to consider a maintenance

grant for these roads so that the rural public are able to enjoy the fruits

of rural connectivity to its fullest.

B: Roads under Border Roads Organisation:

Sikkim being a border State, all important roads connecting to the

border areas is maintained by the Border Roads Organisation (BRO),

including the main highway NH -10.These roads is of strategic

importance for the security and defence of the Country. Since these roads

are under BRO, the sanctions for up-gradation and repairs are

accorded on piecemeal basis which causes inordinate delays in

implementation. It is therefore suggested that the following roads

may be taken up under National Projects, so that there is no delay in

implementation and people do not face hardships.

National Highway – 10: (Sevoke – Ranipool) (length 89.40Km)

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The NH- 10 (old NH31A) is the lifeline of the State. The road is

being upgraded to 2-lane standard since 2009 and is going at a very slow

pace. As per the information received, only 50% of the widening works

has been approved by the Government of India for which the expected

date of completion is 2016. The remaining stretches are yet to be

sanctioned. It is requested for the consideration the remaining stretches on

top priority. Early completion of the widening process of NH 10 would

help in enhancing the Tourism Industry and reduce the cost of

transportation of goods and services.

National Highway – 310: (Ranipool – Burtuk – Sherathang –

Nathula) (Length 65 Km)

The State Government is very much thankful to the Government

of India for re-opening the Trade between India and China through

Nathula. The up-gradation of road connecting to Nathula began in year

2009 and is still far behind its completion which is greatly affecting the

trade. Early completion of the work will definitely boost Trade as well as

Tourism Industry in the State.

National Highway – 310a: (Tashi View Point to Mangan) (length: 66

km)

This road connects the District Head Quarters of North

Sikkim, Mangan. The road was being upgraded to double lane standard

and is maintained by the Border Road Organisation under GS fund.

The road has recently been declared as National Highway but is today

in a very deplorable State. It is requested that necessary up gradation

work on the same may be sanctioned at the earliest.

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The road further connects to Chungthang and it diverts to

Lachen and Lachung. The conditions of these roads are very pathetic

and needs immediate intervention of the Government of India for

immediate up keep and widening to double lane.

Singtam – Dikchu – Rangrang: (length 40 km)

The road connects the District Head Quarters, Mangan to the

nearest Railway, New Jalpaiguri, Airport at Bagdogra and the nearest

commercial hub, Siliguri. The total length of the road is 39.06 Km

which needs to be upgraded to double lane standard.

Rangpo to Rorathang: (length: 11 km)

The road is of intermediate standard which connects Rongli,

Kupup, Nathula and Sherathang. The road requires proper

maintenance and up-gradation to double lane standard.

Reshi – Rongli – Kupup - Sherathang: (length 95 km)

The road is of single lane standard with 94.50 Km length which

connects Nathula Border as well as the trade base camp, Sherathang.

Improvement and up-gradation of this road is required.

Dikchu – Sangkalang – Mangan: (length: 28 km)

The road is being used by the Army as an alternate route to

North Sikkim. With the specific request by the Army, the road was

handed over to the BRO. This road requires improvement along with

replacement of existing suspension bridges.

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Dikchu - Sangkalang – Sapho – Toong (length: 64 km)

The road was constructed by the BRO during 1990s and is still

an earthen road. The road connects to the remotest hamlets of the North

District. Immediate improvement of the road is required as this is an

alternate route connecting to Chungthang and other parts of North

Sikkim.

Ravong – Phamtam – Dzongu – Upper Dzongu – Chungthang:

Sikkim is surrounded by Nepal, China, Bhutan and movement of

the Army to safeguard of the territory is of prime importance. At present

the Army has to travel several days to reach the border. To reduce the

time for deployment of Army in the border, connectivity along above

proposed alignment is essential. This road shall be starting from Ravong-

Phamtam – Dzongu - Upper Dzongu - Chungthang.

Maintenance of Roads:

Due to the earthquake of 18th

September, 2011, most of the roads

infrastructure was damaged and completion of revenue generating

Projects have been delayed which may take some more time for

completion. At the moment, there is no major revenue generating units

except Tourism. Though the Government of India was generous to grant

us Rs. 200 crores, we are still facing difficulties in maintaining and

repairing our roads. As on date, the funds provided under the Finance

Commission Grants are inadequate for coping up with the required

quantum of maintenance works. It is requested that the Government of

India may kindly allocate a sum of Rs 696 crores, specifically for

maintenance of the existing road network.

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The requirement of fund district-wise is as follows:-

Sl.No. District Rupees in crores

1 West 235

2 South 238

3 East 190

4 North 33

Railway Connectivity

Rail Link Between Sevoke in West Bengal to Rangpo in Sikkim.

Survey of rail link between Sevoke in West Bengal to Rangpo in

Sikkim was conducted by North-Eastern Frontier Railway and a Geo

Technical Study was also conducted. The foundation stone for the project

was laid by His Excellency the Vice President of India, Shri Hamid

Ansari in the presence of the then Union Railway Minister, Ms. Mamata

Banerjee in the year 2009. There has been considerable delay in

implementing the project as the environment clearance is pending with

the Government of West Bengal. Establishment of the rail connectivity

would definitely lead to solving many of the issues related to connectivity

in the State and also further economic development on a faster pace. With

regard to environment clearance pending, it is suggested that a

Concurrent approval mechanism needs to be set up between the

Central Government and the concerned State Government(s) as the

subject of Forest clearance is in the Concurrent List.

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5. Prime Minister’s Package for Earthquake Re-construction

Sikkim was approved and sanctioned Rs.1000 crores under

Special Plan Assistance for post earthquake re-construction under the

Prime Minister’s Special Package. The State is very grateful for the

Special Package and release of Rs.700 s till 2013-14. To complete the re-

construction and rehabilitation works, a balance of Rs.300 crores

proposed under Annual Plan 2014-15 may kindly be considered.

The peace and tranquillity prevailing in the State for the last

twenty years has accelerated the pace of development, especially in the

tourism sector. However, there is growing unemployment due to limited

avenues and the State has to provide employment to a large segment of

the population. Various infrastructure projects have also been sanctioned

by the Central Government and Ministry of Development of North

Eastern Region including North Eastern Council. All these projects

require State Share for which the State has not been able to fully provide

the required funding due to limited resources and earmarking of funds

under Additional Central Assistance and Special Plan Assistance. A

small State like our’s has to bear the administrative and establishment cost

of various mandatory Institutions and Organizations in the State.

It is therefore, requested that the Annual Plan 2014-15 for

Sikkim may be reviewed with special fiscal compensation recommended

under the Report of the Committee to study Development in Hilly States

arising from Management of Forest Lands with Special focus on creation

of Infrastructure, Livelihood and Human Development, especially in the

Himalayan Region with a package of Rs.1000 crores for Sikkim to

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address the various problems as well as development of economic and

social infrastructure in the State as a one -time package. We will connect

these to infrastructure development in Tourism, Education, Health,

Floriculture and other Sectors.

6. 14th

Finance Commission

The Memorandum submitted by the State Government to the

14th

Finance Commission projecting the difficulties and disadvantages

may be considered with adequate award. The State Government has

projected Rs 20511.98 crores. In spite of Sikkim joining the main

stream in 1975, the stipulation regarding adoption of population is

based on figures of 1971 census. The viable option for us would be to

adopt the latest census figures which will be in proportion to the

increase in population.

7. Tourism

The tourism sector is the mainstay of our economy. Over the

years, we have been undertaking a number of new programmes and

policies. Our thrust areas being eco tourism and rural tourism, with the

aim of sustainable development in this core sector. We are also

planning to step into the foray of Niche Tourism by constructing

Golf Courses and venturing into concepts like Meeting Institute

Conference and Exhibition (MICE). Establishment of a Reptile Park,

a Theme Park, an Eco-Tourism Complex at Kichudumra, South

Sikkim and a Skiing Resort in North Sikkim are some of our

proposals. However, the basic necessity of good roads, quality power

and water supply are essential pre-requisites of this service industry.

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Hence, sufficient funds may be required to meet up the demand regarding

these as well.

It is therefore, our earnest and humble request that the Tourism

sector may be given top priority by the Government of India and render us

help and support in every possible way to take forward our dream of

making Sikkim one of the most sought after tourist destinations of the

world.

8. Education

The State Government gives top priority to education and our

emphasis is on providing quality education. Education in the State is

inclusive of both formal and vocational education. Our target is to

develop the human resource of the State and make the youths employable

and self-reliant. Projects such as establishment of a Girls’ College and

Vocational College are being taken up.

We already have an Institute of Capacity Building, through

which many of our youth have been trained. More such capacity building

programmes will be organized in future. We hope to get the required

support from Government of India for our future endeavours in this sector

as well.

9. Health facilities

The State has only two major hospitals in STNM Hospital and

Central Referral Manipal Hospital, which is located in Gangtok. These

hospitals do not have the required ultra modern facilities. We are also

constructing a 575 bedded multi-speciality hospital, a few kilometres

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away from Gangtok. But these facilities may not be enough to cater to the

growing needs of the day. Therefore, we would be grateful if you could

kindly look into the possibility of establishing an AIIMS in our State

for the overall benefit of our people.

10. Establishment of Central University for Himalayan Technology

The initiative taken by the Hon’ble Union Minister of Human

Resource Development for the establishment of Central University for

Himalayan Technology has given us hopes and aspirations for

setting up of the University in our State. Sikkim renowned for its

peace and tranquillity would be an ideal place for this venture,

particularly North Sikkim. With its idyllic setting and friendly

people, the University would be ideally located. We are hopeful that

our State may kindly be considered for this project.

11. Organic Farming

The State is working on a mission mode and organic farming is

one of the missions of the State Government. We plan to be a fully

organic State by 2015 for which massive drive has already been

undertaken and we are still in the process of meeting our target. However,

merely achieving our target of a fully Organic State will not be enough.

We intend to take it further and maintain our status by planning specific

goals for the future. Regular trainings to the farmers, production of

manures and ban on fertilizers are the steps we have to pursue

continuously. Establishment of a Manure Production Plant in the State is

one of our plans.

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We have certain issues which are pending with the

Government of India for a long time. In spite of numerous

representations, some economic political issues have remained

unresolved. They are:-

SOCIO-ECONOMIC POLITICAL ISSUES

12. Reservation of seats in the Sikkim Legislative Assembly for the

Limboo and Tamang communities.

The Limboo and Tamang communities were declared as

Scheduled Tribes in 2002 by Act No.10 of 2003. The State Government

has been requesting the Government of India ever since their declaration

as Scheduled Tribes for reserving seats in the Sikkim Legislative

Assembly too by a Central legislation as Scheduled Tribes without

disturbing the 12 seats reserved for the Bhutia and Lepcha communities as

their reservation of seats in the Assembly is on the basis of communities

and not on the basis of being Scheduled Tribes alone. In the recently

concluded elections too these Limboo- Tamang communities could not

derive benefit of being Scheduled Tribes in the Sikkim Legislative

Assembly though the State Government has given them job reservation.

These two communities are also feel that the Government of India has not

been giving them the due as provided in the Constitution.

We earnestly request that the Government under your able

leadership will also resolve the issue of allocation of seats in the

Assembly for the Limboo and Tamang communities.

13. Inclusion in the list of Scheduled Tribes.

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The erstwhile Sikkim Subjects were categorized as Indian

Citizens vide Sikkim (Citizenship) Order, 1975. Sikkim Subjects and their

descendants number just around four lakhs of people. In the erstwhile

regime of the then Chogyal the underlying principle amongst the Sikkim

Subjects was the treatment of equality between the Sikkimese Bhutia-

Lepchas and the Sikkimese Nepalese. However, in 1978 only the Bhutia-

Lepcha communities were declared as Scheduled Tribes. Later in 2002,

Limboo-Tamang communities were added in the list of Scheduled Tribes.

The left out Sikkimese numbering around two lakhs are nurturing a

feeling of anguish, discrimination, deprivation and alienation due to

denial of their rightful due. In this historical background of justice being

denied, the issue of restoration of equal socio-economic status to all the

left out Sikkimese ethnic communities of Kirat Khambu Rai, Gurung,

Mangar, Thami, Jogi, Sanyasi, Bahun, Chettri and Newar should be

favourably considered at the earliest.

We are very thankful to the Government of India for

exempting all Sikkimese from Income Tax as defined under

Explanation of Section 10 Clause (26AAA) effective from 1st April,

1991 under the Income Tax Act, 1961. The commonality of all

Sikkimese communities has been clearly amplified in the provision of

exemption in Income Tax law at Section 26(AAA) of the Income Tax

Act. We feel very strongly that the basic fabric of the Sikkimese

communities has to be respected and appreciated as it is the

underlying ethos of the Sikkimese society. Unless we address this

sensitive issue and pay serious attention in a time bound manner, the

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situation is likely to impact the prevailing peace and tranquillity in

the most peaceful State of the Nation. This matter has to be resolved.

14. 17th

Gyalwa Karmapa, Ogyen Trinley Dorje to Rumtek

Monastery:-

The Karmapa is the head of the Kagyu lineage in Mahayana

Buddhism. The Rumtek Monastery has been the seat of the Karmapa ever

since the 16th

Karmapa, Ranjung Rigpe Dorje took refuge here.

The people of Sikkim have been anxiously and expectantly

waiting for the Government of India to allow His Holiness Ogyen Trinley

Dorje to take his seat at Rumtek for a number of years now. It is a long-

pending wish of the people of Sikkim and an issue close to the heart of

every Sikkimese. In the past, the State Government has made numerous

representations to the Centre regarding this issue. The first representation

was made in the year 2000.Ever since; the State Government has

submitted other petitions as well.

You are aware Sikkim is a peaceful State where the people are

simple and religious minded. The presence of the Karmapa in the State

will further enhance the tranquillity of the State and add to the spiritual

development of the people. We are anxious to see that the State prospers

not only materially but in all aspects of human development. We would,

therefore, like to request you to kindly facilitate the early coming of His

Holiness Ogyen Trinley Dorje to Sikkim.

15. Income Tax Exemption to left out and Old Business

Communities:-

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The people of Sikkim are grateful to the Government of India for

granting exemption of Income Tax to the Sikkimese by introducing

Clause “(26 AAA)” in the Finance Act, 2008. ‘Sikkimese’ here includes

all Sikkim Subject holders and their descendants.

However, the following categories of persons have been deprived

of the exemption for not having their names included in the Sikkim

Subject Register maintained under the Sikkim Subject Regulation, 1961.

1. Persons who has/had agricultural land in the rural areas and has

been ordinarily residing in the State of Sikkim.

2. Old settlers i.e., the business community who have been residing

continuously and have permanently settled in Sikkim prior to the

enactment of the Sikkim Subject Regulation, 1961;

3. Persons whose father/husband has/had been in Sikkim

Government Service prior to 1969 and who have permanently

settled in the State of Sikkim

These categories of persons are referred to as the “left out

persons”. These left out persons have been persistently approaching both

the Central and the State Governments for extending Income Tax

exemptions. Taking into account, the social historical as well as political

aspects of these people, the Government of Sikkim feels that they deserve

exemption at par with the individuals already exempted.

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