CM proposes legislation to levy Earthquake Cess

GANGTOK, 26 June: Chief Minister Pawan Chamling has proposed to bring a new legislation to raise an Earthquake Cess to be utilized for repair and rebuilding of infrastructure damaged by the 18 September 2011 earthquake.
This new legislation, the CM explains in his budget speech, is to mobilize resources “to embark on rebuilding the damaged infrastructures and rehabilitating the shattered lives of the people in Sikkim”. He said that Sikkim’s economy, mostly dependent on energy and tourism sectors, too, suffered greatly resulting in revenue shortfall which is likely to continue for some years till the restorations works are completed and the economy is put back on the rails.
The State government has passed a policy resolution to create a “Sikkim Earthquake Management and Rehabilitation Fund and Sikkim Land Policy for Private Sector Development, 2012” with a view to improve the resource base, the CM said.
Under this policy, all investors wanting to set up hydro power projects, hotels, industries etc. are required to contribute and deposit anywhere from Rs. 5 crore to Rs. 50 crore [depending on the cost of the project], prior to allotment of the land.
“Sikkim government also raised the power tariff by 16 percent in April and these measures reflect the determination to improve our resource position. But for a small State resource starved state, this is a formidable task, especially after the devastating earthquake,” the CM said in the budget speech.
“There is an urgent need of fiscal consolidation to enable the State to keep up the Plan funding from the Central Government and the pace of economic development of the State to optimum level despite the setback received due to the earthquake,” Mr. Chamling said.
He added that Sikkim government has demanded special package of Rs. 600 crores for completion of ongoing projects as well as to bridge the resource gap and another package of Rs. 150 crores to improve internal road connectivity. Sikkim needs the help of the Central Government to put the growth path back on track to maintain the tempo of development and progress for State.