Annexure - I

Note on Industrial Development, Capacity Development and Livelihood Promotion in Sikkim

Inspite of the healthy economic growth, major concern for the state has been absence of large industries, which is
essential for sustaining the economic growth. Creation of large industry requires existence of facilitating physical
infrastructure (transport, storage etc.), easy access to raw materials and availability of skilled manpower. While,
the State Government is taking measures in this direction, however, a lot needs to be done in the days to come to
address these issues. To this end WEBCON is proposing the following :
1.

Industry Potential Study (IPS) An industry potential study needs to undertaken for the state to identify the
key sectors where large / medium / small industries may be established that in turn can act as key drivers of
economic growth in the state. The study will involve District / Block wise Mapping of available natural
resources, various socio-economic indicators (including geographic and demographic profile), availability of
raw materials, availability of physical infrastructure, availability of skilled man power, analysis of the overall
regulatory framework for industry promotion in the state, nature and dimensions of inter/intra trade among
sectors/state/countries, identification of various ancillary industries and their forward and backward linkage
with potential industries and economic growth etc. Ultimate outcome of the study will be identification of
potential large / medium / small scale industries for the state along with recommendations on what needs to
be done to facilitate the process.

2.

Survey of Existing Industries The industry potential study needs to be supplemented with a survey of
existing industries that will aim at getting feedback from the existing industries about their ease of doing
business in the state, their growth projections and future expansion plans, identification of bottlenecks and
key drivers for their business expansion and business growth, their capacity utilization and how those can be
optimally used, their present and future manpower requirements, their suggestions for future improvements
etc.

3.

Industrialisation Roadmap across sectors in the state Based on the Findings of Industry Potential Study and
Survey of Existing Industries, WEBCON in consultation with the State Government will develop a holistic plan
for industrialization roadmap across sectors (Large, Medium, Small and Micro industries) for the state for
traditional as well as new industries.

4.

Skill Development / Capacity Building The Industry Potential Study and Survey of Existing Industries will
highlight long term demand for skilled manpower in the state. This in turn will require undertaking Placement
Linked Skill Development Training Programmes and Entrepreneurship Development Programmes to meet
future demand for skilled manpower in the state. A more robust step would be setting up of a Livelihood
Excellence Center under financial assistance scheme of MSME, Govt. of India with residential training facilities,
incubation facilities and handholding support to the trainees and entrepreneurs. Further, in order to develop
the spirit of entrepreneurship, Entrepreneur Nurturing Center (ENC) will be established in the state.

5.

Infrastructure Creation Availability of facilitating infrastructure is one of the key drivers of industrial growth.
This involves creation of roads, communication, Food &Technology Parks, Raw Material Banks including inputs
to manufacturing industry, Warehouse and Cold storage facilities etc. To this end, Government of India under
its various incentive based schemes allows creation of such infrastructure for development of industries. In

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this regard, WEBCON can liaison with appropriate Central Government Departments and bring in funds for
creation of infrastructure. WEBCON, having rich experience in preparing DPRs, Detailed Engineering Drawings
etc. will be able to contribute effectively in the process.
6.

Marketing & Branding for bringing industries While Industry Potential Study and Survey of Existing
Industries will identify sectors having growth potential, it is equally important to promote Sikkim as an
investor friendly destination which is necessary to instill a sense of confidence among potential investors and
attract business in the state. To this end, it is imperative to promote the state as a dependable destination
among investors. Similar approach will also have to be undertaken for ethnic products made in Sikkim.
Subsequently appropriate steps will have to be undertaken to reach and connect the domestic and overseas
markets through investors, seminars, visits, promotional campaigns, advertising and publicity in print and
electronic media, developing appropriate dissemination materials (brochures, booklets, websites etc.). To this
end, WEBCON will prepare a Branding, Positioning & Marketing plan for promoting Sikkim to attract
investments in the state. In addition, WEBCON will also help the State Government in organinsing promotional
campaigns, seminars, buyer-seller meets etc. in domestic and overseas markets. Besides the above, after
ascertaining the viability of different industries in the state, WEBCON can prepare sample DPRs that can be
shared with potential investors through various traditional and innovative means.

Besides the above core activities for industry promotion, WEBCON can work with your Government in the
following areas too a.

Creation of Special Institutions WEBCON will assist The Government of Sikkim in establishing Special
Institutions / Excellence Centers in collaboration with various Departments of Central Government that will
focus on development of specific sectors e.g. an institution that will aim at promotion of food processing
industries through training and providing handholding support to the investors / startup entrepreneurs. Such
institution may be thought of for other sectors as well viz. spices, pharmaceuticals, Tea, handloom and

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handicrafts, tourism, renewable energy etc. To this end WEBCON can effectively contribute in the process by
developing DPRs for such special institutions with Central Government Funding.
b. CSR - CSR is no longer viewed as a standalone philanthropic activity and is rather considered as a way through
which business creates a sustainable eco system for themselves and for the society at large. As per the revised CSR
guidelines all CPSEs having Profit After Tax (PAT) above Rs.500 crores in the previous year shall allocate 1%-2% of
their PAT for CSR and Sustainability activities. Activities pertaining to CSR and Sustainability initiatives should focus,
among others, on Infrastructural Development and Skill Development. In this regard, WEBCON will organize a one
day dialogue meeting between Commerce & Industries Department, Government of Sikkim, and various CPSUs &
Corporate Houses to attain the following objectives :
Making the CPSUs & Corporate Houses aware about which are the areas where CSR intervention is
required to facilitate long term development of the state ;
Identify overlapping areas and ensure non-duplication of efforts, in which case, funds may be put to more
efficient projects by both the corporate houses and State Government ;
Strengthening the Corporate Government partnership in the long run.
This is a win win situation for both The Government and Central PSUs since the corporate houses and Government
will get an opportunity for one-to-one discussion, hence they will be able to share their mutual issues & concerns
that will Strengthen their Long Term Partnerships.
In this regard, we feel that the dialogue meeting with 100 plus CMDs of large corporate and other opinion /
decision makers may be invited which will help to develop a lasting relationship and obtaining funds from them on
CSR account. Besides this will help Sikkim Governmnet to create better bondage with these important people by
creating emotional attachment.
c.

Management Development Programmes (MDPs) Various studies highlight the dearth of competent personnel
from Sikkim in higher management positions in the various companies. To address this issue many of the corporate
hire personnel from other states which increases their expenditure on salaries and wages, and ultimately affects
their comparative cost advantage. To this end MDPs can be an effective tool for to improve employee knowledge
base, leadership skills and managerial abilities, improved team management etc. WEBCON has been conducting
MDPs for A&N Island Administration and the results by far are encouraging. WEBCON will undertake similar
programmes in collaboration with the Commerce and Industries Department, Govt. of Sikkim for various
executives, and employees in middle management working in the various corporate houses.

Conclusion Based on WEBCONs experience of working with various Central Government Departments and
Ministries, it may be emphasized that there are a number of incentive based schemes available from the Ministries /
Departments that supports development of different sectors. Such schemes can be instrumental in facilitating
infrastructure and industrial development across the state. If required, WEBCON will collect all relevant information
and take appropriate steps towards development of the state in consultation and partnership with the State
Government.
Regarding Central Government Funding for conducting Industry Potential Study, Survey of Existing Industries and other
Research Studies, WEBCON will explore available opportunities and will communicate the same to the State
Government. In case funds for such activities are limited or not available, WEBCON will design Special Purpose
Proposals that may be either routed through Ministry of Development of North East Region (DONER), North East
Council (NEC), The North Eastern Development Finance Corporation Ltd (NEDFi) etc. or, directly submitted to various
Government of India Ministries / Departments for approval. It may be noted, that if required, WEBCON along with the
State Government can make presentation on such special purpose proposals and take appropriate actions jointly for
obtaining approvals.

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