EODB of Sikkim

1. Sikkim
This are the important supports need for anyone to build up the
investment climate
• Resources/Inputs
• Regulatory framework
• Incentives to Industry
• Physical and social infrastructure

2. • Getting electricity is an important factor in all kinds of business the Sikkim
is developing a separate website for getting electricity, till now they have
achieved online bill payment they are developing soon they will be option
for getting new connection through the website even.
https://sikkim.gov.in/departments/energy-and-power-department/new-
service-connection
• Paying Tax : Establish a helpline providing basic services such as assisting
users in preparing and filing returns under the State/Union Territory GST
Act
Advantage of doing business in Sikkim

3. • Protecting Minority Investors: Establish a specialized division/bench
under the High Court to hear commercial disputes
• Enforcing contracts: The contracts are infused in an online mode so that
there will be no physical signing is required
• Registering Property: Digitize cadastral maps of all rural areas in the
state.
• Trading across borders: there are many illegal trade happening in the
borders if they are regularized they can achieve an new business line
there.
• Facilitating infrastructure Sikkim is well connected by roads.
Telecommunication connectivity compares with the national standards.
Optical-fibre connectivity is being developed. Rail and air connectivity
are also being developed in the state.
Upcoming Contracts

4. BRAP unfulfilled reforms
BRAP 2019, DPIIT has proposed to undertake a 100% feedback based assessment area wise.
• Labour regulation enablers: This consists of reforms for factories. Like introduction of a provision for self-
certification /third party certification for boilers by persons having qualification, introduction of provision for
issuing Factory License and all subsequent renewals with validity of 10 years or more, eliminate the requirement
of inspection prior to registration under the Shops and Establishment Act and ensure that the registration is
granted within one day from the date of application etc. These were mainly for the relaxation of owners so that
can work without thinking about all the odds and also to settle relationship between company and govt.
• Access to Information and Transparency Enablers: Transparency and access to information are crucial in ensuring
access and participation, and can contribute to reducing or preventing corruption, clientelism and inefficiency.
Approval of plan and permission to construct/extend/or take into use any building as a factory, approval for
Boiler manufacturer and renewal thereof, registration of establishment under the Inter State Migrant Workmen
(RE&CS) Act, 1979 etc.
• Commercial Dispute Resolution Enablers: The act of solving disputes between business entities by methods
including negotiation, arbitration, mediation, and litigation. Establishing specialized division/bench under the
High Court to hear commercial disputes, specialized commercial courts to hear and resolve the commercial
disputes, ensure at least 90% of the vacancies in specialized Commercial courts been filled up, design and
implement a system that allows e-filing for commercial disputes in Commercial courts etc.

5. • Land administration and Transfer of Land and Property: This suggests the rules of land tenure are applied
and made operational. Land administration, whether formal or informal, comprises an extensive range of
systems and processes to administer. Digitizing cadastral maps of all rural areas in the state, integrating the
mutation process with the registration process and allow intimation of mutation as soon as the deed is
registered, provide model deed templates for sale, gift, lease, mortgage and rent in downloadable and
editable format along with instructions to use them, to design and implement a system that allows online
application and payment for submission and verification of document and mandate that all applications are
submitted online; were kind of reforms to be implemented.
• Inspection Enablers: These were decided on the basis of problems faced by companies in scheduling
inspections and conflicts between inspectors and companies. Reform build up goes as Design and develop
an online inspection platform for scheduling inspections, to ensure that selection of establishments for
inspection is done using risk assessments and to differentiate compliance inspection requirements based on
risk profile.
• Construction Permit Enablers: A building permit is an official approval issued by the local government
agency that allows to proceed with a construction or remodeling project on your property. It ensures that
the project plans comply with local standards for land use. Publish a well-defined inspection procedure and
checklist on department’s web site, design and implement a computerized system for identifying
building/area that needs to be inspected based on risk assessment, mandate online submission of
inspection report within 48 hours to the Department, design and implement a system for computerized
allocation of inspectors etc are some ways to enable easy construction permits.

6. • Single Window System: The single-window system is a trade facilitation idea. In simple words, it allows a user to get
sufficient information from one source. Ensure ‘Registration certificate of Establishment Inter State Migrant
Workmen(RE&CS)Act,1979 (License of Contractor Establishment)’ is provided as a service through the online single
window system facilitating the online application submission, payments, tracking of status, approvals and issuance of the
certificate(s), ensure `Registration under weights and measures, 1998` is provided as a service through the online single
window system facilitating online application, payments, tracking of status, approvals and issuance of the certificate(s),
ensure 'Consent to establish (under Water Act & Air Act)’ is provided as a service through the online single window
system facilitating online application submission, payments, tracking of status, approvals and issuance of the certificate(s),
ensure 'Consent to operate (under Water Act & Air Act)’ is provided as a service through the online single window system
facilitating online application submission, payments, tracking of status, approvals and issuance of the certificate(s) etc; are
some reforms which are to be implemented to facilitate secure and easy trade of information.
• Land Availability and Allotment: This reform is to design and implement a land allotment system that allows online
application and payment without the need for a physical touch point for document submission and verification and
mandate that all applications are submitted online, ensure that the system allows users to download the final signed land
allotment certificate from the online portal and allow third parties to easily verify the land allotment certificates in the
public domain.
• Environmental Registration Enablers: This reform was to allow for auto-renewal of Consent to Operate (under Water Act,
1974 and Air Act, 1981) based on self-certification/third party certification and ensure that majority of establishments
avail this provision and issue Consent to Operate with a validity period of 5 years or above. Also to design and implement
a system that allows online application submission, payment, tracking and monitoring without the need for a physical
touch point for document submission and verification and mandate that all applications are submitted online.

7. • Obtaining Electricity Connection: Ensure that the regulator publishes monthly or quarterly the data regarding
total duration and frequency of outages online in public domain, ensure that information on effective tariffs
are available online, and that customers are notified of a change in tariff ahead of the billing cycle and
implement a system that allows online application submission, payment and tracking of status without the
need for a physical touch point for document submission for new electricity connection and mandate that all
applications are submitted online. This would make getting electricity and paying off expenses very feasible
and easy. Sikkim receives most of its electricity from 19 hydroelectric power stations. Power is also obtained
from the National Thermal Power Corporation and Power Grid Corporation of India.
• Paying Taxes: Design and implement a system that allows online application submission, payment, filling,
tracking and monitoring without the need for a physical touch point for document submission and verification
and mandate that all applications are submitted online and also, ensure that the system allows user to
download the final signed approval certificate from the online portal.

8. • Three North Eastern states Meghalaya, Arunachal Pradesh and Sikkim is among three lowest rank holders
when it comes of Ease Of Doing Business in India even after having the edge of investment prospects in
organic products.
• Sikkim currently does not have a Companies Act, as after the repeal of the old Act, new Companies Act has
not been notified. It further noted that being an environmentally sensitive zone so the clearance cannot
be automatic as each issue needs a closer look.
• The land laws protect the interest of ethic community and any change of title requires approval at highest
level.
• According to 5th Employment Un-employment survey of Labour Bureau 2015-16, Sikkim has second
highest unemployment rate (after Tripura) of 18.1 per cent. This implies jobless growth in the State.
• According to reports in 2015, Sikkim was on the 27th rank and now has fallen to 33. This shows that the
reforms are not implemented or are not effective.
• In recent years, the government of Sikkim has extensively promoted tourism. As a result, state revenue has
increased 14 times since the mid-1990s. Sikkim has furthermore invested in a fledgling gambling industry
promoting both casinos and online gambling. The Playwin lottery has been a notable success in the state.

9. • Talking about the Performance Index, President Kovind said that India has improved by 10 points while in
Travel and Tourism Competitiveness ranking of World Economic Forum, India has reached 34th position from
52nd.
• Sikkim offers a great deal of tourism.
• Most investment opportunity that Sikkim can promote is in tourism and organic products.
• Tourists visiting the northeastern state of Sikkim shot up by nearly 77 per cent to 14.25 lakh during 2017, according to
the state’s tourism department.
Tourism

10. Limitation
• There are only four district and the population is 6.19 lakhs. So Sikkim
is not a big market there is less land resource for investors to do set
up any plant
• But for tourism investor it is a great area
• The government is not that cooperative because they are so ethnic
diversified state. There are so many Nepalis immigrated in large
number so there is always fight with the governments even after one
party forms the government.

11. Our Idea
• The Sikkim government should develop a one portal website for
everything all registration in a single website.
• Tourism should be given as contract to the private sectors there are
many investors ready to invest in the state and the registration of
land for that has to be made easy and it should be a fast process
• All the upcoming Idea should be implemented fast
• The population in Sikkim is increasing drastically so it’s a good time
for investors because they can get employees at low rate.