ANNUAL PLAN 2002-03
Industries Department

DEMAND No. 17

Sikkim is a small state with population of half a million as per 1991 census. The nearest airport is Bagdogra in North Bengal (120 Km) and the nearest railway head is New Jalpaiguri (110 Km).

Sikkim is a comparatively peaceful state having skilled manpower, a wide network of road communication, banking facilities and no Labour problem.

The whole state has been declared as an industrially backward state and the Government has identified certain areas for the establishment of Growth Centers mainly is South and West districts. Further the Government has approved the proposal for declaring the following areas as Industries Belt Areas viz. Melli-Legship, Rangpo-Ranipool, and Ranipool-Saramsa areas as Industries Belt Areas viz. Melli-Legship, Rangpo-Ranipool, and Ranipool-Saramsa corridors. Setting up a Public Sector undertakings in four District head quarters and Small Scale Industrial Units at the Gram Panchayat Levels are also proposed so that avenues area created for the unemployed youths.

The following are the Thrust Areas identified by the Government

• Agro-based industries-Floriculture
• Animal Husbandry an Diary Products.
• Minor Forest Based products.
• Handloom, Handicrafts and Village Industries.
• Tourism.
• Precision oriented, High Value, Low Volume products.
• Electronic and Software.
• Hydel Power and
• Tea
• Information technology-development of electronic parks etc.

Single Window Clearance are issued for the investors within a very short period and therefore it is considered as one of the best place for investment, Government encourages only the projects, which are high value, low volume eco-friendly and not detrimental to its cultural heritage.

1. Direction and Administration
Annual Plan 2002-2003 Rs 29.70 lakhs.

The Department of Industries will be promoting small scale and tiny units in a major way through the new scheme Chief Minister Rojgar Yojana launched from the F.Y. 2002-03 onwards. Further the strengthening of existing facilities for conducting promotional activities relating to industrial sector is also envisaged to be taken up in the C.F.Y. 2002-03.

2. Directorate of Handicrafts and Handlooms.
Annual Plan 2002-03 Rs 168.70 lakhs

The Department of Industries will be promoting small scale and tiny units in a major way through the new scheme Chief Minister Rojgar Yojana launched from the F.Y. 2002-03 onwards. Further the strengthening of existing facilities for conducting promotional activities relating to industrial sector is also envisaged to be taken up in the C.F.Y. 2002-03.

2. Directorate of Handicrafts and Handlooms.
Annual Plan 2002-03 Rs 168.70 lakhs

The Directorate of Handicrafts and Handloom has been functioning for the last four decades on Sikkim with the basic objective of imparting employment oriented training duly preserving and promoting the age old arts and crafts of Sikkim.

The Directorate provides/services that are not only confined to training but also post training requirements viz providing raw materials, looms, tools and equipments and marketing.

The strategy to be adopted during the Plan period 2002-03 is to continue gains made during the Ninth Plan period with emphasis to be land on upgradation of skills, new designs, establishment of the Sikkim Handloom and Handicrafts Development Corporation Ltd. To facilitate the craft persons with self-employment opportunities and creation of a board based sustainable market.

3. Incentives to Industries.
Annual Plan 2002-03 Rs 15.00 lakhs

Since a major emphasis will be on Private Sectors in the 10^th plan and Sikkim being 28 years younger than other state of India, incentives like investment Subsidy, Power Subsidy, Interest Subsidy, Price Preference, free Consultancies are urgently needed to attract the entrepreneurs.

After the withdrawal of the Central Investment Subsidy Scheme from October, 1988 by the Government of India, the task of Industrialization in the State has been very difficult in the absence of such a facility, prospective investors in the State are shying away. In order to accelerate the growth of industrialization, a package of incentives to new industrial units and units undergoing modernization and expansion has been formulated. As such an outlay of Rs 15 lakhs is projected under this head in 10^th Plan.

4. Information and Publicity
Annual Plan 2002-03 Rs 8.00 lakhs

The information sections attached in the department of Industries is proposed to be strengthened to make their working more effective by purchasing equipments for a documentation center and preparation of project profiles, pamphlets, booklets, exhibitions fares & seminars etc., purchase of industry related reports, journals and other study materials and dissemination of information to entrepreneurs. Major thrust will be towards attaining satisfactory levels in the Information Technology sectors, computerization of D.I.Cs. are also proposed. A provision of Rs 8.00 lakhs is proposed during the C.F.Y. 2002-03.

5. Entrepreneurship Development Programme
Annual Plan 2002-03 Rs 4.00 lakhs

Consistent with the board objectives of State Human Development Report & Vision Document, a massive thrust will be directed towards Human Resource Development by imparting Entrepreneurship Training and Rural Artisan Training to educated unemployed people. This is expected to provide employment to around 2500 people by the end of the plan. To make the training programme more effective it is proposed to engage professionals to train the budding entrepreneurs. Accordingly, outlay of Rs 4 lakhs is proposed under this scheme.

6. Khadi & Village Industries.
Annual Plan 2002-03 Rs 64.85 lakhs

The Sikkim Khadi & Village Industries Board has been implementing various schemes for which Grants – in Aid and loans from the Khadi and Village Industries Commission have been received annually. The outlay provided is for meeting the establishment charges and for restructuring of the Board to increase effectiveness and efficiency. A total allocation of Rs 64.85 lakhs is proposed for SK VIB in the C.F.Y. 2002-03.

7. Chief Minister’s Rojgar Yojana
Annual Plan 2002-03 Rs 1300.00 lakhs

Chief Minister’s Self Employment Scheme for providing Self Employment to Educated Unemployed Youth was announced by the Hon’ble Chief Minister on 23^rd March 2002 in his budged speech to provide self-employment opportunities to educated unemployed youth in the State.

The Chief Minister’s Self Employment Scheme has been designed to provide employment for setting up micro enterprise by the educated unemployed youths. It relates to the setting up of self-employment ventures through service and business routes. The scheme also seeks to associate reputed Non-Governmental Organizations, Panchayats, MLA, DC/DDO/SDMs/SIBI, SIDBI, Industries, Agriculture, Animal Husbandry Departments, Banks etc. in implementing of CMSE Scheme is setting up of the venture.

In addition to the initial budgetary outlay of Rs 5 crores only, a further supplementary provision of Rs 8 crores only required to bridge the financial shortfall vis-à-vis the targeted physical coverage has also been approved and provided by the Government for the scheme. The revised budget outlay of Rs 13 crores only in the C.F.Y. 2002-03 is anticipated to covered physical target of 2400 Nos. of beneficiaries.

8. Assistance to Gram Panchayat
Annual Plan 2002-03 Rs 2.50 lakhs

In keeping with the decentralization policy of the government the department has provide an outlay of Rs 2.50 lakhs under the Gram Panchayat head to assist in organizing industrial awareness training programmed and motivation camp at the grass root level.

9. District Industries Centre.
Annual Plan 2002-03 Rs 57.25 lakhs

The Industries Policy enunciated by the Government of India on 23^rd December 1977 has laid special stress on the development of small-scale village and cottage industries in the sixth plan. In pursuance of this policy, the Union ministry had decided to set up district center in every district of the country under a phased programme.

The main objective of setting up district industries centers is to provide all the services and support required by small and village entrepreneurs under one single roof. The services includes industrial potentially surveys in the district, supply of machinery and equipment, provisions of raw materials, arrangements for credit facilities under Prime Minister’s Rojgar Yojana (PMRY) as also an effective set-up for marketing of the products plus research and extension activities.

The State of Sikkim has four districts, i.e. East, West, North and South. Looking towards the size of the State and its populations only two district Industries center have been set up, one at Gangtok to cover East and North district and the other at Jorethang to cover South and West district. These were earlier funded under centrally sponsored schemes but they have now been passed onto the State government to meet up the expenses incurred in the functioning of the district industries center. During the 10^th plan it is proposed to establish two mini industrial estates for DICs, which is very essential for infrastructure build-up. An outlay of Rs 57.25 lakhs has accordingly been provided for the financial year 2002-03.

10. Consumer Industries.
Annual Plan 2002-03 Rs 10.00 lakhs

Proper guidance to investors and entrepreneurs is not available at present. Therefore, feasibility study and project report on various sectors will have to be initiated duly consulting with the consultancies during this plan period. Also as in depth study on the present industrial scenario and the future course of action will have to be taken up urgently. A number of modernization schemes of PSUs are under active consideration for which consultancies are required. Two vehicles or extensive survey works in the districts are required and proposed. Therefore, an outlay of Rs 10.00 lakhs is proposed to meet the above expense for the F.Y. 2002-03.

11. Small Scale Industries: Building
Annual Plan 2002-03 Rs 5.00 lakhs

The department of industries propose to take up the construction of D.H.H. Hostel at Namchi during C.F.Y. 2002-03. Accordingly a budget outlay of Rs 5 lakhs only is provided.

12. Tea Development
Annual Plan 2002-03 Rs 10.00 lakhs

a. The new industrial policy has identified the Tea Industry as one of the thrust areas of the Government. Temi Tea is one of the quality teas in the world. It will be the effort of the Government to expand tea production and manufacture in the State. Therefore, a Tea Development Corporation of Sikkim is to be formed in place of the Tea Board of Sikkim, it will be responsible for running Temi Tea Garden, identifying and starting new gardens and for encouraging small tea growers in tandem with the schemes of the Tea Board of India.

b. Consistent with the State Planning Commission’s guidelines creation of 4 Tea Nurseries in each district, each with 5 lakh plants capacity will be planned. This will result in extending tea plantation by about 500 acres. After this a new tea factory having one lakh kg. Tea production capacity per annum will be feasible. This will involve a sum of Rs 505.66 lakhs.

c. Patenting of Temi Tea will be initiated as per the latest guidelines of WTO for which a sum of Rs 5 lakhs is proposed.

d. Possibility of Temi Tea producing organic tea will be pursued so as to get better price in foreign markets. For this a sum of Rs 50 lakhs is proposed.

e. A new co-operative tea factory having one lakh kg. Production capacity per annum a proposed to be set up in Sang Martain of the tea.

13. Public Sector Units.
Annual Plan 2002-03 Rs 180.00 lakhs

A provision of Rs 180 lakhs has been provided for the public sector undertaking like SITCO, Sikkim Jewels Ltd. Government Fruit Sikkim Precision Industries Limited etc. Further a financial provision of Rs 80 lakhs from the budgetary allocation is proposed to be provided to Handoom and Hancidraft Development Corporation.

14. Incentives to Industries
Annual Plan 2002-03 Rs 150.00 lakhs

The Department of Industries besides taking up the necessary measure to revitalize sick industries and provide measured assistance for rehabilitation scheme proposes to take up promotion of village based micro level industries in a phasied monner through a policy conceptualised in consultation with SICON, during the C.F.Y. 2002-03. Accordingly an outlay of the 150 lakhs has been provided in the budget of C.F.Y. 2002-03.

15. Sikkim Industrial Development & Investment Corporation
Annual Plan 2002-03 Rs 50.00 lakhs

SIDICO was established in 1977 with the twin function of Industrial Development and Financial Corporation. The Government has paid highest priority for setting up Small Scale Units covering of the Gram Panchayats. In order to finance Industrial Units, Rs 50.00 lakhs provided as an additional equity to the corporation. The Corporation has to play a very important role in promotion of the Industrial Units in the Stte. An outlay of Rs 50.00 lakhs is provided as equity participation in the year 2002-03.

ABSTRACT

1. Direction and Administration Rs 29.70 lakhs 2. Directorate of Handicrafts and Handlooms Rs 168.70 lakhs 3. Incentives and Industries Rs 15.00 lakhs 4. Information and Publicity Rs 8.00 lakhs 5. Entrepreneurship Development Programme Rs 4.00 lakhs 6. Khadi & Village Industries Rs 64.85 lakhs 7. Chief Minister’s Rojgar Yojana Rs 1300.00 lakhs 8. Assistance to Gram Panchayat Rs 2.50 lakhs 9. District Industries Centre Rs 57.25 lakhs 10. Consumer Industries Rs 10.00 lakhs 11. Small Scale Industries: Building Rs 5.00 lakhs 12. Tea Development Rs 10.00 lakhs 13. Public Sector Units Rs 180.00 lakhs 14. Incentives to Industries Rs 150.00 lakhs 15. Sikkim Industrial Development & Investment Corporation Rs 50.00 lakhs Total for Village & Small Industries and Industries other then VSSI Rs 2055.00 lakhs