Reservations in Private Sector to Locals for 3E(Education, Employment and Economy) 

The past 10 years have been eventful in terms of industrialisation and privatisation. From an industry perspective, Sikkim business has been the most significant contributor to the growth and profitability of Indian pharma industry. They have not left any stone unturned to make sikkim horrible due to the lack of strict laws and rules.

Sikkim, which is the least populous state in the country and the second smallest after Goa, now houses the biggest pharmaceutical manufacturers than Gujarat and Goa. This could have been big advantage for the public of our state in 3Es (education, employment and economy); but it is causing reverse effect to our state.

12 years ago Cipla company started its production and today, Sikkim is the home to more than 17 major pharma companies including big names like, Sun Pharma, Zydus Cadila, Alembic, IPCA, Alkem Lab, Intas Pharma, Torrent Pharma, Unichem, Lupin etc.

The main reasons for mushrooming of companies are due to: 

  1. A peaceful state
  2. The labour, power and overall cost of manufacturing is low as compared to states.
  3. Sikkim’s attractiveness lies in the multitude of tax benefits.
  4. 100% excise duty exemption on finished products manufactured here.
  5. 100% exemption on income tax.
  6. Ten-year income tax holiday.
  7. Capital investment subsidy of 30% on the investment in plant and machinery
  8. Interest subsidy at 3% on working capital loan.
  9. Reimbursement of 100% insurance premium. 
  10. Sikkim under the Centres North East Industrial and Investment Promotion Policy.
  11. Sikkim is eligible for incentives for a period of ten years from the date of commencement of commercial production.

As an icing on a cake, government also offers attractive subsidy and no strict laws and policy.

However, the lack of strict laws and policy has hurt the growth of the domestic industry. The earlier government was hand-in-glove with these companies and therefore, did not want to expose what was between them. After giving so much to them, our state’s conditions are still the same.

The new government should come up with a dedicated policy, strict laws and rules to all the companies specially in the 3Es (education, employee and economy) as there are still issues with availability of skilled and educated manpower required for them in our state.

If the government effectively utilises them and the benefits they offer, then there can be no reason why Sikkim cannot emerge as the next Goa and every company will start their investment in Sikkim as a potential destination in days to come.

By Deepak Adhikari, Teacher cum IT Professional cum Social Worker
Tumin Barang. The author can be contacted via

NB: Views/Opinions expressed in the article or write up is purely of the author or writer. For any queries or contradictions the author can be contacted in his/her email id.


Please enter your comment!
Please enter your name here