Sikkim Chief Minister Prem Singh Tamang has expressed concerns over the state's financial condition, citing a Rs 3,200 crore loan burden inherited from the previous Sikkim Democratic Front (SDF) government. He said that his administration had to take urgent steps to prevent Sikkim from falling into the Non-Performing Asset (NPA) category.
The Chief Minister said that when the Sikkim Krantikari Morcha (SKM) government assumed power, it faced significant financial hurdles due to the outstanding debt. The Teesta Stage III Hydropower Project, a 1,200 MW venture, was a major contributor to this debt, as the previous government had borrowed heavily to fund it. However, the revenue generated from the project was insufficient to meet loan repayment obligations, putting the state at risk of severe financial distress.
To address this financial crisis, the government had to take proactive steps. An additional loan of Rs 300 crore was secured from the State Bank of Sikkim, which was used to make necessary payments and prevent the project from becoming an NPA. The Chief Minister underscored that these measures were essential to protect the state's financial interests and ensure that Sikkim did not lose its 60.08% share in the Teesta Urja project.
The Chief Minister also discussed the devastating impact of the 2023 Glacial Lake Outburst Flood (GLOF), which led to extensive destruction in Sikkim. He criticized the previous government’s decision to build a rock-filled dam instead of a concrete dam, stating that a concrete structure could have prevented large-scale destruction. The collapse of the dam resulted in severe damage to infrastructure and loss of lives.
Following the disaster, the Sikkim government appealed to the central government for relief and subsidies. However, the Centre clarified that while assistance would be provided through the National Disaster Management Authority (NDMA), the outstanding loans could not be waived or subsidized, as the project was financed through commercial loans.
To ensure financial stability, the government took strategic decisions, including restructuring debts and optimizing project revenue. The Teesta Urja project, where Greenco is the second-largest shareholder, is expected to generate 12% revenue for the state once fully operational.
Tamang said that these financial measures were taken in the best interest of Sikkim and its people. He said that despite the challenges, the government remains committed to economic stability, development, and ensuring financial security for future generations.
Apart from financial issues, the Chief Minister also raised concerns about Sikkim’s declining population. To address this, the government introduced the Vatsalya Scheme, which provides financial assistance for IVF treatments. The initiative is designed to support couples facing infertility challenges and boost the state’s birth rate.
Moreover, government employees are now eligible for six months of maternity leave and six months of childcare leave. To further incentivize population growth, the government has implemented a salary increment system, granting an increment for employees with two children and a double increment for those with three children.
