GANGTOK,: Externally Aided Projects
supported by Asian Development Bank (ADB) and World Bank loans are playing a
crucial role in shaping Sikkim’s progress, notably in the power sector, urban
infrastructure and employment opportunities.
Chief
Minister PS Golay, delivering his State Budget 2024-25 address in the Sikkim
Legislative Assembly, highlighted the significant impact of the ongoing and
proposed Externally Aided Projects in the State.
ADB support for smart urban
infrastructure
Rapid
urbanisation in Sikkim is presenting challenges such as overcrowding and
deteriorating air and water quality requiring substantial infrastructure
transformations in the towns of the State.
An
integrated development approach has been considered as the most effective
solution to advance urban infrastructure development with the support of
external aid.
The Chief
Minister informed the House that the State government has sought financial backing
from external agencies to enhance infrastructure in seven towns across Sikkim.
These urban areas include Singtam, Tadong and Ranipool localities of Gangtok,
Pakyong, Rangpo, Mangan, Gyalshing and Soreng.
The
Government of India has granted in-principle approval for securing US$ 180
million (approximately Rs. 1,494 crore) from the Asian Development Bank (ADB)
for these projects, which require a total estimated investment of US$ 225
million (approximately Rs. 18,600 crore), shared the Chief Minister.
Through
this ADB and State government-support project, we will be able to strengthen climate-resilient
and smart urban Infrastructure; improve urban mobility and livability; and enhance
State and Municipal capacity, said Golay.
US$ 148.5 million ADB
support to modernize power infra
The Chief
Minister informed the House that Sikkim’s power sector underwent a significant
transformation since October 2023 when floods washed away the Teesta-III mega
hydel power project and its dam in Chungthang, impacting nearly 1800 Mw of
power.
Consequently,
Sikkim has transformed from being a power-surplus State to a State requiring
additional support.
“Recently,
the Asian Development Bank (ADB) approved a US$ 148.5 million (approximately Rs.
1,220 crore) loan to strengthen, modernize, and climate-proof Sikkim’s
distribution system. This initiative aims to enhance the reliability, quality,
and resilience of electricity supply, supporting Sikkim’s Power for All
initiative to ensure round-the-clock access to quality electricity for households,
industries, businesses and the public,” said Golay.
He shared
that the project will facilitate the efficient transfer and integration of
renewable energy into the distribution system, improving access to electricity
in rural areas and for businesses. It will increase economic opportunities, ensure
productivity and improve living conditions.
Key upgrades
in this project include approximately 770 km of climate-resilient
medium-voltage underground and/or covered conductors, replacing 580 km of aging
and low-capacity bare conductors, upgrading 26 existing power substations,
installing a supervisory control and data acquisition system, adding 15,000
units of public street lighting in remote areas, and conducting electricity conservation
and safety awareness programs in 28 villages.
“The ADB
will also assist in developing a financial sustainability strategy and a plan
to establish the Sikkim Power department as a self-sufficient entity, enhancing
the financial sustainability of the electricity sector. Additionally, it will
provide support in formulating a power distribution master plan, integrating
geographic information systems and distribution system modelling, establishing
a real-time monitoring control centre for enhanced power management and
devising a strategy for gender and social inclusion,” said the Chief Minister.
US$ 100 million World Bank support for
Sikkim INSPIRES
The Sikkim
Integrated Service Provision and Innovation for Reviving Economics (INSPIRES)
programme, supported by the World Bank, is another major initiative in the
State aimed to deliver improved economic opportunities for women and youth. The
five-year project is being implemented with a budget of around Rs. 1900 crore
with the World Bank providing US$ 100 million (approximately Rs. 830 crore) in
loan assistance.
As
outlined in the Chief Minister’s Budget speech, Sikkim INSPIRES aims to promote
economic inclusion opportunities for women and youth in non-farm sectors
through four key interventions.
These
include strengthening State systems to support employment outcomes for women
and youth; enhanced entrepreneurship in priority sectors for women and youth; training
for women and youth for employment in priority sectors; and creation of a comprehensive
care and workplace safety system.
Golay
mentioned that during the design phase of Sikkim INSPIRES, the Government of
Sikkim and the World Bank conducted a baseline assessment to identify
inefficiencies in Sikkim’s labor market, focusing on women and youth. Over
1,500 respondents and more than 20 employers in six priority sectors were
surveyed. The findings informed the Results
Framework,
making Sikkim INSPIRES a unique intervention tailored to address local
challenges and aspirations.
Nine
government departments are involved in this program to share a common Results
Framework.
“Under
INSPIRES, we have planned to train our women and youth so that they can address
and fill the gaps where required, such as in the growing demand for healthcare
professionals. With aging populations in regions like Japan, Europe, Canada and
the USA, there is an increasing need for skilled healthcare workers. By
equipping our trainees with the necessary skills, our government aims to meet
this demand effectively. These trained professionals will not only have
opportunities abroad but will also contribute to enhancing the capabilities of
India’s major hospitals and healthcare facilities,” said the Chief Minister.
The focus
is on preparing trainees for various regions by 2030, including South East Asia
(Malaysia, Hong Kong, Singapore, Thailand and Vietnam), East Asia (Japan,
China, Korea and Taiwan), Middle East (Saudi Arabia, Qatar, Iraq, Israel and
UEA), North America (USA and Canada), Europe, and South West Pacific countries
(including Australia, New Zealand, Fiji and Mauritius).
With
Sikkim INSPIRES, we are witnessing a paradigm shift in policy advocacy, placing
women and youth at the center of economic and emotional development of our
society, said the Chief Minister.
