ADDRESS BY H.E. THE GOVERNOR OF SIKKIM TO THE SIKKIM LEGISLATIVE ASSEMBLY ON 27TH JULY, 2009


Honourable Members


I feel both honoured and privileged to address this august House for the first time. I know this temple of democracy represents the will of the people of the State and has in its history served the Sikkimese people in all its sincerity.


At the outset, I take this opportunity to congratulate the Honb’le Chief Minister Pawan Chamling and his colleagues for the unprecedented victory in the recently concluded general elections. The overwhelming mandate received from the people by Dr. Pawan Chamling for the fourth consecutive term is indeed remarkable. The results of the election are a testimony to the overall good governance, development and maintenance of peace and harmony in the State.


Improvement in the social sector coupled with rapid infrastructure development has made Sikkim one of the model States of the country. The exemplary personal involvement of the Honb’le Chief Minister and his able team and the overall development of the State in achieving a high growth rate is commendable.


The Gross State Domestic Product (GSDP) at Current Prices rose from Rs. 545 crores in 1995-96 to Rs. 2612 crores in 2008-09 as per advance estimates. The net Per Capita Income also increased from Rs. 10021 to Rs. 37553 in 2008-09. The index of GSDP increased by 379% and per Capita Net State Domestic Product (NSDP) by 275% during the period 1995-96 to 2008-09.


In recent times, Sikkim has bagged a number of prestigious awards like the Nirmal Rajya Puraskar for being the first state in the Country to achieve 100% sanitation and the 4th JRD Tata Award 2008 among the small states based on performance in key health indicators. These awards are undoubtedly indications that the plans, programmes and policies of the Government are headed in the right direction.


The disparity between the rich and the poor should be bridged and the problem of unemployment amongst the educated youth tackled on priority to build an equitable and just social order. Such an approach towards inclusive growth would help make Sikkim a self sufficient State.


The States Annual Plan document has been guided by the 11th Five Year Plan approved by the Government of India. The thrust of our 11th Five Year Plan is the inclusion of various flagship programmes; i.e. National Rural Employment Guarantee Scheme (NREGA), Indira Awaas Yojana, National Rural Health Mission, Pradhan Mantri Grameen Sadak Yojana (PMGSY) and Jawaharlal Nehru National Urban Renewal Mission (JNNURM).


I am happy to mention that the State Plan outlay for the year 2009-10 has been fixed at Rs. 1045.00 crores, which brings an increase of 22.65% from the allocation of the last financial year. Focus has been laid primarily on Health, portable and safe Drinking Water, Education, Power and Energy, Agriculture, Horticulture and Tourism Sectors and the Youth. It is our endeavor to provide health security, food security and to better the status of women and children in the State.


Apart from this, the Government aims to provide 10% of the total budget from the plan outlay for the capacity building initiative for the educated youth of Sikkim. This is being done with a view to honing up the skills of the educated unemployed in the fields of tourism and hospitality, mass communication and IT, modern methods of agriculture and animal husbandry, floriculture, cottage industry, trade and other skilled jobs. The aim is to create new opportunities for the youth, for purposeful and sustainable living.


The State Government is in the process of building an Institute for Capacity Building, thereby becoming the first State in the Country to initiate such a policy.
Urban-rural disparity needs to be bridged and migration from the rural areas to urban centres is to be controlled by vigorous implementation of the flagship anti-poverty programmes.


Effective implementation of the NREGA and PMGSY in the State has been ensured by active involvement of the elected Panchayati Raj institutions. This would go a long way in ensuring livelihood security in the State.


My Government is also in the process of building a 575 bedded super specialty hospital in the capital so that the people can avail of the best medical facilities within the State itself. The people of North Eastern Region can also take advantage of the facilities of this super specialty hospital. The project is being given top priority.


In the Health Sector, my Government has started a health insurance scheme for the Below Poverty Line (BPL) families. It will cover people above the age of 45 years and they will be given full and comprehensive free health checkup.


The agenda laid out in the flagship programmes of the National Rural Health Mission is also being carried out as per norms. Besides, there will be continued expansion of health infrastructure in terms of upgrading the Primary Health Sub-Centres to Primary Health Centre standards, recruitment of more doctors to be posted in the rural areas and free medical checkups, besides introducing the first ever Mobile Medical Units (MMU) in the region.


The challenge before us is to provide quality education and improve the literacy rate. Further improvement in the existing educational infrastructure and higher education will also be addressed. We are in the process of recruiting highly qualified teachers and improving the quality of education.


My Government has envisaged building one model school each for all the four districts. In this programme, the best students after passing Class V would be selected and admitted in Class VI in the model schools so that they are given the best quality education and groomed upto Class XII to compete at the national level.


The Sikkim University is also being facilitated by the State Government. Emphasis would be given on courses which are of relevance to the State against the backdrop of our natural resources.


Further, my Government is undertaking a Sikkim Universal Financial Inclusion Project to provide access to banking service through IT enabled bank savings account operation to the rural households. It will also ensure efficient and timely delivery of social benefit schemes like NREGA, old age pension and rural housing scheme by directly crediting monetary benefits through the smart cards of the beneficiaries.


The scheme aims for inclusion by enrolment of approximately one lakh rural households and issuing of composite smart card by organizing camps and setting up kiosk through business correspondents of the designated bank in accordance with the RBI guidelines. Households having a member in the Government job shall not be covered.


Public-private partnership which has started in tourism, hydel power generation and floriculture will be vigorously pursued and taken to other sectors as well.


Sikkim has abundant hydro electric potential. My Government believes in tapping the huge natural resource available, to bring about the desired level of progress and prosperity to the State. Out of the 8000 MW hydro potential in the State, it is envisaged a total of 5257 MW capacity hydel power generation will be added by the end of 11th & 12th Five Year Plans.


The 510 MW Teesta State V hydro power plant was recently dedicated to the nation by the Union Power Minister on 4th July 2009. 12% free power of its installed capacity which fetches about Rs. 125 crore annually will be a permanent source of revenue to the State and can be utilized for various development works. This is a major contribution to the nation from a small State like Sikkim. This is one of the largest hydel power plants in the North East Region.


Climate change is a global phenomenon. My Government is fully seized of this issue and has taken proactive measures in combating climate change and carbon emission in the State. We must not live in conflict with the elements of nature, rather we must respect and protect the bounties of the earth, live side by side in harmony so that we hand over the earth to our children in the same manner as it was handed over to us.


There have been reports which suggest that the Himalayan glaciers are in a state of peril and receding at an alarming rate. In Sikkim, we are most likely to be the victims of climate change leading to erratic monsoons, natural calamities and, unusually warm winters. Less volume of snow fall in the higher reaches of the mountains is already having an adverse impact on climate change.


The Government has sought an authentic report on the melting of Zemu glacier which is one of the biggest amongst the 84 glaciers in Sikkim. The committee on climate change would study the impact of global warming on glaciers in the State. Last year, a status report on the glaciers of Sikkim was prepared by a study team comprising of eminent experts at the initiative of the Science & Technology Department. The Chairman of the Committee was Professor S.I Hasnain, an eminent glaciologist.


This august House has already unanimously endorsed the Executive Report of B K Roy Burman Commission for Review of Environmental and Social Sector Policies, Plans and Programmes (CRESP) in the year 2008. The State Government thereafter forwarded this Executive Report to the Central Government for its implementation. The full report of this Commission justifying the inclusion of the remaining ethnic tribes belonging to Sikkimese Nepali Communities to be included in the list of Scheduled Tribes by the Government of India was placed on the Table of the House during its last session early this year. My Government is pressing for the expeditious implementation of Roy Burman Commission Report recommendation by the Government of India.


The Honble Chief Minister has called on all the leaders at the Centre, to ensure that the representation of the Limboo and Tamang seat is taken to its logical conclusion. The Central Government has also been requested to declare Sikkim where there is more than 40% tribal population as a tribal State. Further, my Government has also assured the protection of Bhutia, Lepcha and Sangha seats in the Sikkim Legislative Assembly.


The Government of India by an amendment in Section 10 of the Income Tax Act has exempted individuals being Sikkimese from payment of Income Tax on any income which accrues or arise to him (a) from any sources in the State of Sikkim, or (b) by way of dividend or interest on securities.


By explanation to that Section, the term Sikkimese has been defined. For persons who have not been covered under the definition of the term Sikkimese but who have been residing in Sikkim prior to the merger of the State in the Indian Union, my Government is vigorously pursuing with the Government of India to exempt them also from payment of Income Tax.


All policies and programmes are being implemented in a most transparent and democratic manner with equal representation of the people. This will be further consolidated through the local body elections to be held shortly at Gangtok.


My Government believes that important infrastructure projects such as telecommunication, transport network and power are vital in creation of a stable and peaceful society, for it ushers in progress and prosperity in the State.


The restoration of the NH 31A has begun. I am glad to inform that under the aegis of the Special Accelerated Road Development Programme in the North East Region, the Government of India, has agreed to construct an alternative highway from Sevoke in West Bengal to Gangtok and the road from Gangtok to Nathula.


The Cabinet Committee headed by the Prime Minister has recently sanctioned the rail link to Sikkim as a National Project. The rail link would connect Sevoke to Rangpo in the first phase and Rangpo to Bhusuk in Gangtok in the second phase. The tender for the locational survey in respect of this rail link has been awarded by the North Eastern Frontier Railway and the work on identification of land for acquisition is to begin shortly.


The work on the Rs. 309. 46 crore Pakyong Airport has since commenced under the aegis of the Airport Authority of India. The construction would be completed within the next three years. The Airport is expected to greatly benefit the State in terms of tourism promotion and other economic advantages which would percolate once we are connected by air.


The people of the State are looking forward to rapid progress and dawn of a new era. It is now time to shape and mould our society in which we move towards prosperity and happiness. I am confident you will motivate the people to put the State interest above sectional wants. The onus and responsibility is yours to take the State and our people to greater heights. My Government is fully committed to the hopes and aspirations of the Sikkimese people and is working tirelessly to ensure a better future.


Honb’le members, the People of Sikkim have given you an overwhelming mandate and have opted for a Government that can serve the people efficiently, effectively and usher in an era of good governance.


In conclusion, I wish this august Assembly very productive and fruitful deliberations. Together, let us work to make Sikkim a developed State of the Indian Union in every respect.


JAI HIND

ASSOCIATION OF OLD SETTLERS OF SIKKIM
GANGTOK,SIKKIM
Date:22/02/2010
Press Release

The Association of Old Settlers of Sikkim strongly condemns the article titled “Sikkim makes settlers ‘second class citizens” published in the Hindustan Times dated 22/02/2010. I deny each and every remark attributed to have been made by me in the said article.

The said article is an attempt by some vested interest and groups who want to dissuade the ruling government from continuing its efforts to secure Income Tax exemption to the left out categories of people.

It is an attempt to sabotage our movement which is solely aimed at securing income tax exemption for the old settlers residing in Sikkim since prior to 1975 and is not, in any way, directed against any one.

I vehemently deny having met or spoken to any correspondent of any newspaper let alone this particular correspondent from the Hindustan Times. I deny having passed any remark against any particular community and the ruling party.

I strongly condemn the remarks made against the ruling party in the said article. No discrimination of any kind is perpetuated against any community in Sikkim. On the contrary, as the facts stand, action of the Central Government in bringing about an amendment in Section 10 Clause 26AAA of the Income Tax Act, 1961 in the Finance Act, 2008 has overnight made the Old Settlers “Non-Sikkimese” which when brought to the notice of the Hon’ble Chief Minister by the Association; the Hon’ble Chief Minister was pleased to adopt a unanimous resolution in the Sikkim Legislative Assembly for the inclusion of the left out categories of persons in the scheme of exemption.

For centuries all the communities in Sikkim have been living in perfect harmony as brothers and the Association of Old Settlers of Sikkim has always received support and encouragement from all the Sikkimese brethren in its endeavor to secure I.T. Exemption and the question of my making remarks hurting the sentiments of my own brothers of a particular community does not arise.

The Association of Old Settlers of Sikkim reiterates its complete faith and confidence in the State Government of Sikkim and the Hon’ble Chief Minister who has been all along sympathetic towards the cause of the old settlers and working relentlessly to get them justice from the Central Govt.

(S.K. Sarda)
President
Association of Old Settlers of Sikkim.
Gangtok,Sikkim

Old settlers advised to seek legal advice on IT exemption issue


GANGTOK, October 21: Deflating the high hopes of the old settlers of Sikkim for an early resolution of their concerns on the controversial income tax exemption issue, the State Government has asked the community numbering to around 400 families in the State to seek legal and constitutional advice so that the matter can be forwarded to the Centre.

In a recent communiqué to the Association of Old Settlers of Sikkim (AOSS), which had been spearheading the demand for income tax exemption at par with Sikkim Subject holders, the State Government has belatedly directed the body to approach legal experts or chartered accountants to look into the lacunae ‘if any’ in the Income Tax Act 1961 for ‘possible inclusion’ of their demands within the provisions of the said Act ‘so that the Government of Sikkim could take up the issue with the Government of India’.

The decision was communicated to the AOSS recently by the six member committee headed by Chief Secretary which had been formed to examine all matters relating to the grant of exemption of Central Income Tax (Direct Income Tax) to the left out individuals in Sikkim and make recommendations to the State government for taking up the issue with the Centre.

Having examined the matter, the committee members were unanimous in the decision that there were ‘no provision’ in the Income Tax Act, 1961 for grant of income tax exemption to the left out individuals of Sikkim, the committee told AOSS directing it to approach legal experts.

It is interesting to note the ‘if any’ rider in the communication to the AOSS which not only reinforces the State government’s surrender as it itself had admitted that there is no provisions in the Income Tax Act for income tax exemption but also deftly lobs the whole issue into the court of AOSS who have now no option except initiate a cumbersome legal exercise so that it can put up a dossier before the State government.

Following this process which may take months, it is also unclear at this moment whether the State government will simply ‘Cc’ the AOSS findings to the Centre or strengthen it with its official inputs.

As the State government escalates down from its tall promises of ‘Ladakh model’ and other politically coloured assurances, the AOSS has decided to rethink and draw up a new strategy to pursue their demands under the legal framework suggested by the State government. It is informed that a meeting will be conducted tomorrow here at Gangtok where members of AOSS from all four districts will attend as the body has been compelled to huddle back to the drawing board after a steady campaign in the past two years.

We will seek legal advice and submit our report to the State government, said the AOSS president SK Sarda to SIKKIM EXPRESS. He said that advice of the State government has been well taken by AOSS terming the communiqué as ‘positive signals’ from the State government.

Mr. Sarda said that AOSS is confident that ruling Sikkim Democratic Front (SDF) will take up the matter with the Centre as the party has committed to deliver income tax exemption to the left out individuals of Sikkim.
The old settlers had fully backed the SDF party during the recent elections and it is the responsibility of the SDF government to fulfill its promises, was the general feeling running high among the left out individuals of Sikkim.

Source: sikkim express

SIKKIM STATE LEVEL COMMITTEE OF AOS-SIKKIM FORMED

ASSOCIATION OF OLD SETTLERS OF SIKKIM.
GANGTOK. SIKKIM.

PRESS RELEASE
22.10.2009


A State Level delegates meeting of Association of Old Settlers of Sikkim ( AOSS) was held in Gangtok on 22-10-09 which was attended by more than 350 delegates representing all towns and bazars of Sikkim.

The meeting which was called to deliberate on the socio-economic development of the old business community of Sikkim witnessed unprecedented enthusiasm in appreciation of sincere efforts and unstinted support of the Government led by Dr Pawan Chamling who has stood by the community which is in minority, at all times.

The meeting discussed enactment of Finance Act 2008 wherein the old settlers have been inadvertently left out from the exemption of Direct Taxes and appraised that the AOSS has been taking up the cause of these 9000 odd left out individuals who are two centuries old settlers and who are true Sikkimese earning and investing within the state.

Shri S.K.Sarda, President of the Association of Old Settlers of Sikkim in his address appreciated that the SDF party itself in its Election manifesto had dealt with the matter in detail and promised that as soon as the Government comes into formation, the matter of Income tax Exemption to old settlers will be taken up. True to his words, Dr Chamling immediately after the formation of the Government for the 4th term visited New Delhi and urged Prime Minister of India to solve this problem. The president on behalf of the old settlers expressed gratitude to His Excellency the Governor and the Hon’ble C.M for having taken on record in the Sikkim Legislative Assembly the need to secure exemption from Income tax for them in their endeavor to deliver justice and equal rights to all.

Shri Suresh Agarwal, General Secretary appraised the meeting of the various steps taken by AOSS and the support received from the State Government in this regard. He said, upon the request of the AOSS the Government was kind enough to constitute a committee to look into its request for exemption to old settlers and recommend their case to Government of India. He said that the Committee in its first meeting held on 8.10.2009 has directed AOSS to obtain expert legal opinion which could help the State Government in pursuing for exemption for the old settlers with Government of India. He further said that this was a very positive signal from the State and that the AOSS shall faithfully discharge the responsibility given, by consulting legal luminaries and present their opinion before the committee.

The meeting adopted the following resolutions.

1. A Thirty One Member State Level Committee formed to obtain expert opinion from leading legal, constitutional and taxation luminaries.
2. As directed, the opinion(s) so received shall be submitted to the State Government for consideration and taking up the matter for exemption of Income tax to left out individuals with Government of India.
3. To support the popular demand of implementation of Income Tax act with prospective effect for PEOPLE SETTLED POST MERGER.
4. To inform the Income Tax Department of all developments in this regard by submitting copy of letter received from the Government of Sikkim and relevant extracts of the present meeting.




Anil Kumar Gupta
Secretary
Association of Old Settlers of Sikkim (AOSS).
Gangtok, Sikkim

While addressing the conference Pawan Chamling, Chief Minister of Sikkim said that the steps taken by the Sikkim government to issue Identity Card for the Sikkim Subjects and their descendents to maintain their distinct identity as well as to others residing in the State is the step taken on internal security system.

From Sikkim Express

Nagarik Sangharsha Samiti writes to CS; demands equal treatment in tax exemption

GANGTOK, September 1: The Nagarik Sangharsha Samiti has written to the Chief Secretary demanding equal treatment to persons (baring foreigners) residing in Sikkim before April 26, 1975 in the matter of tax exemption and in socio-economic and political arena in Sikkim.

A letter signed by Prem Goyal, Chief Coordinator of the Samiti has also urged the six-member Committee on Tax Exemption to give them the opportunity to present their views to the Committee before making recommendations to the Government of Sikkim for taking up the issue with the Government of India.

“You may kindly recall that we have, right from 1977 onwards, been working for the protection of the rights and interests of all citizens residing in Sikkim. We submitted a memorandum dated June 25, 1996 to the Chief Minister of Sikkim, Pawan Chamling, and thereafter several reminders and fresh memorandum have been submitted periodical1y, urging the State Government to accord equal treatment to all persons residing in Sikkim before April 26, 1975,” the letter reads.

The Samiti has in the past submitted several memorandums to the Governor of Sikkim, Chief Minister, Union Finance Minister and also to the Central Board of Direct Taxes from time to time reiterating their ‘genuine’ demand for equal treatment.

INCOME TAX EXEMPTION TO LEFT OUTS IN SIKKIM

SIKKIM: CS heads committee to study Income Tax exemption to ‘Left Outs’
Posted by barunroy on July 22, 2009

FROM SIKKIM EXPRESS

GANGTOK: The State government has constituted a six member committee headed by chief secretary ND Chingapa to consider exemption the left out individuals of Sikkim from the purview of Central Income Tax.

The other members of the committee are additional chief secretary TT Dorji, law secretary RK Purkhayastha, Chief Minister’s principle secretary RK Basnet and transport secretary KN Bhutia.

HB Rai, additional commissioner, commercial taxes division is the member secretary of the committee.

The high level committee has been tasked to examine all matters relating to grant of exemption of Central Income Tax (Direct Tax Law) to the ‘left out’ individuals in Sikkim and make recommendation to the State government for taking up the issue with the Centre. The committee has also been directed to submit its report at the earliest.

It may be added that the ‘left outs’ as referred by the State government implies those persons living in Sikkim for generations and had not been granted exemption from paying income taxes as provided to people with Sikkim Subject Certificates.

The Union government had last year exempted Sikkim Subject holders from paying Direct Income Tax by passing an amendment in the Finance Bill of 2008.

People of Sikkimese origin having Sikkim Subject Certificates have been exempted from Direct Taxes as per the 26AAA clause paving way for the Act to be enforced in the state.

However, the old business community who has been living in the State for generations but without Sikkim Subject certificates have expressed their objections for being left out of the Act.
The old business community had also expressed their objections for being bracketed into ‘Non Sikkimese’ category by the Union government in the Finance Act.

The old business community living here for generations had demanded to be defined as ‘Left out Sikkimese’ and not as ‘Non Sikkimese’.


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