Sikkim Online Permit Plan Sparks Revenue Leakage, Fee Hike and Data Debate

Sikkim Chief Minister Prem Singh Golay said the existing permit system had resulted in a major gap between tourist numbers and the revenue reaching the government.

Golay said around 15.68 lakh tourists visited destinations near the India-China border, including Nathula Pass, Tsomgo Lake and Baba Mandir, in 2025. At the existing rate of Rs 200, the visits could have generated about Rs 31.36 crore, while only Rs 3.64 crore reached the government.

“To make this transparent, with no revenue loss, this online system is being initiated,” Golay said.

Tourism Secretary Raj Yadav said department records showed permits collected from only around 34,000 people, while police data indicated 17.64 lakh visitors to the areas concerned. He cautioned that the entire figure could not automatically be treated as tourists requiring permits but said, “We have identified this as an area where leakage could be taking place.”

Yadav said the government could not yet quantify the alleged loss. “I cannot comment on the losses,” he said, adding that the effectiveness of the new system would ultimately be judged by whether revenue increased after implementation.

The proposed system would bring permit applications for destinations including Nathula, Tsomgo, Baba Mandir, Lachen, Lachung, Yumthang and Gurudongmar onto an integrated platform. Registered Sikkim-based tour operators would apply online, while the Tourism Department would retain the authority to issue permits.

The Chief Minister rejected allegations that the government was handing over the system to a private company. “The service provider will only operate the system. All rights and authority will remain with the Tourism Department,” he said, adding that all data and revenue generated through the system would remain under the government of Sikkim and the Tourism Department.

Yadav similarly said a private agency could be engaged for portal development and AI-based management but stressed, “The government’s role is to control, supervise and ensure implementation.”

He said all agreements would be signed by the department and that Sikkim-based agencies would first be given an opportunity to demonstrate their capability.

The BJP’s Sikkim unit, however, questioned the proposed private role and demanded clarity on data ownership, storage and access. BJP spokesperson Passang Gyali Sherpa said, “We are not against technology. But the ownership of the system has to be with the government and not with a private company.”

The BJP also questioned possible geo-fencing and tracking of tourist vehicles, asking, “If the system can track where a vehicle is going and where it stops, who owns that data?”

A proposed fee hike is also under consideration. Charges of Rs 2,000 for vehicles below 1,000 cc, Rs 3,000 for larger vehicles and Rs 5,000 for tempo travellers and buses have been proposed. Motorcycle charges of Rs 500 for local bikes and Rs 1,000 for outside-state bikes have also been proposed.

Yadav defended the proposed rates, saying the Rs 200 charge fixed in 2007 had not kept pace with inflation and that the new rates were calculated at about Rs 500 per person based on vehicle capacity. The government has also proposed insurance and other assistance for tourists and drivers.

Yadav said the stakeholder consultation process would continue before the proposal goes to the Cabinet. Once approved, the department expects about two months to operationalise the system.

The proposed online permit mechanism has therefore emerged as a key administrative measure involving revenue monitoring, permit issuance, private technology support and tourist data management, with the government maintaining that the system will remain under the control of the Tourism Department.