VZCZCXRO5307
RR RUEHAST RUEHBI RUEHDBU RUEHLH RUEHNEH RUEHPW
DE RUEHCI #0127/01 1351102
ZNR UUUUU ZZH
R 151102Z MAY 09
FM AMCONSUL KOLKATA
TO RUEHC/SECSTATE WASHDC 2357
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0164
RUEAIIA/CIA WASHDC
RHMFIUU/DIA FT BELVOIR
RHEHAAA/NSC WASHINGTON DC
RUEHCI/AMCONSUL KOLKATA 2894

UNCLAS SECTION 01 OF 02 KOLKATA 000127 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR SCA/INSB, EAP/CM 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ENRG ELTN EFIN EAIR IN NP BT CH
SUBJECT: BHARAT BALLOT 09: SIKKIM DEMOCRATIC FRONT LIKELY TO RETURN 
 
KOLKATA 00000127  001.2 OF 002 
 
 
¶1. (SBU) Summary: The Sikkim Democratic Front (SDF) appears 
likely to continue its 15 year rule of the small mountainous 
Northeast Indian state strategically wedged in between Nepal, 
China (Tibet) and Bhutan.  While it may not match the 2004 
absolute sweep, it appears that it will retain its one Lok Sabha 
parliamentary seat and most, if not all, of the 31 Sikkim state 
assembly seats it won in 2004.  SDF party members confirmed 
that, as per standing practice, it will lend its support to 
whichever government is formed at the national level.  India's 
1975 annexation of the former kingdom of Sikkim continues to 
resonate emotively with the local population and, as a more 
practical matter, to impact taxation and individual benefit 
levels of so-called "Sikkim Subjects".  The state government is 
currently pursuing several large infrastructure projects 
(hydro-electric, airport and rail) to generate state revenue and 
improve trade, transit and tourism.   Poloff visited Gangtok, 
the state capitol of Sikkim, from May 8 - 10 to report on the 
recently held April 30 parliamentary and state assembly polls, 
the results of which will be announced along with other Indian 
constituencies on May 16.  End Summary. 
 
Demographics - Overwhelmingly Nepali, Significant Bhutia Minority 
 
¶2. (U) The only Indian state with an ethnic Nepali majority, 
Sikkim borders Nepal, China (Tibet), Bhutan and the Indian state 
of West Bengal.  The population of Sikkim (approximately half a 
million) is composed of 75% Nepali, 20% Bhutia and 5% other. 
More than 60 percent of the population is Hindu, 28 percent 
Buddhist, seven percent Christian and 1.4 percent Muslim. 
Bhutias are ethnically similar to the people of Bhutan and Tibet 
and they consider themselves the original residents of Sikkim. 
 
A One Party (Sikkim Democratic Front) State 
 
¶3. (SBU) The SDF has ruled Sikkim for the last 15 years as a 
regional party focused on developing the state's people, 
resources and infrastructure, while preserving the natural 
beauty of the mountain state and a strong sense of Sikkim 
political identity.  SDF party president and current Chief 
Minister, Pawan Kumar Chamling, has led the state government 
during the 15 years of SDF rule.  In 2004 the SDF won the sole 
Lok Sabha parliamentary seat and all 31 of the contestable state 
assembly seats.  The Buddhist ecclesiastical community chose a 
Congress representative as their ecclesiastic representative to 
the Sikkim state assembly (as per the Indian Constitution, 
national parliament and state assemblies may reserve a small 
number of seats for representatives of religious minority 
communities).  According to political observers, the SDF will 
retain the sole parliamentary seat and most of the 31 state 
assembly seats, losing only one or two to the Congress.  While 
some voices question the autocratic hold of the SDF party on 
state government, and bemoan the alleged corruption in contract 
award and development activity, there is no large-scale movement 
for "change" in this relatively prosperous state which enjoys a 
high standard of living.  SDF party members told PolOFF that the 
party will support whichever party forms a national government 
in order to maximize the amount of centrally provided financial 
support to the state. 
 
Legacies of a Kingdom - Sikkim Subjects 
 
¶4. (SBU) When Sikkim acceded to the Indian Union in 1975; it 
retained several of its pre-existing laws, privileges and 
regalia.  Before accession, Sikkim had issued certificates to 
"Sikkim Subjects", those who had been subjects of the King, 
which have since become of considerable value as "Sikkim 
Subjects" are exempt from paying government income tax. 
Children and spouses of "Sikkim Subjects" are also entitled to 
this, and other educational benefits, creating a disparity 
between "Sikkim Subjects" and "Non-Sikkim Subjects" within the 
state.  This effectively creates the anomaly of first and 
second-class citizens, based not on ethnicity but on previous 
"subject" status, within the present-day Indian democratic 
polity.  The SDF has privately acknowledged the necessity of 
addressing the inequities; however, their only politically 
feasible alternative is extension of the benefits to all Sikkim 
residents which is a position that the Government of India would 
most likely strong oppose. 
 
Infrastructure Projects 
 
¶5. (SBU) The state government has focused its infrastructure 
efforts on harnessing the hydro-electric potential of the Teesta 
River and improving the road and rail links connecting Sikkim 
with West Bengal and the rest of India.  Construction has 
already begun on five of the 26 contracts awarded for a total of 
 
KOLKATA 00000127  002.2 OF 002 
 
 
4727 MW of hydro-electric power.  The state would receive 
approximately 12% of the electricity output from these projects 
for their relatively limited internal consumption, while the 
remaining much larger portion will be sold into the power grid. 
The Indian military, through its Border Roads Organization, has 
already invested considerable sums in the construction of roads 
into the strategically important state.  The state government is 
looking to supplement existing road links with the construction 
of the first rail line eventually connecting Gangtok with the 
rail net via Siliguri in West Bengal.  Work on the first phase, 
a 53 km link from Siliguri to the bordertown of Rangpo, is 
expected to commence later this year with a completion date of 
2015-16.  In February 2009 construction began on a USD 71 
million project for the state's first airport in Pakyong, 30 km 
from Gangtok, and is expected to be finished by June 2011. 
Improved rail, road and air connections will benefit the state's 
still relatively small, but promising tourist industry which 
caters primarily to Indian tourists, with small numbers of 
European and even fewer Americans making the trip.  Indo-China 
trade across the Nathu-La pass re-opened in 2006 continues to be 
more symbolic, than meaningful, with the list of goods severely 
limited. 
 
Comment 
 
¶6. (SBU) In Sikkim, the more important political question is not 
which party will rule the state, but rather which SDF member 
will become a minister in the next state government.  The state 
continues to develop its infrastructure through a generous 
infusion of centrally-provided funds commiserate with its 
strategic importance and also as a subtle reminder of the 
benefits of its accession with India.  State government and 
party officials view royalties from upcoming hydro-electric 
projects as potential substitutes for anticipated future 
reductions in central subsidies.  Locals appear to be generally 
content in this small, but relatively prosperous, Northeast 
Indian state.   However, a wistful spark continues to alight in 
their eyes whenever they speak or think about their Himalayan 
neighbor Bhutan and its ability to preserve its sovereign 
monarch status, long after Sikkim had lost hers. 
TAYLOR