In the context of globalized economy and sustainable development steered by Union Government at the center, Sikkim is also marching in strides with set economic milestones and goals. The development of the power sector was a major policy decision adopted by the State Government followed by generous plan outlay towards the infrastructure growth.

There has been a phenomenal growth in the power sector since the year 1994 when the popular government took office. The power sector got tremendous boost to achieve the feet of reaching electricity to almost every remote nook and corners of the rugged mountainous terrain. The State today is trading significant portion of power which has opened up a new front in revenue generation. With the coming up of different hydro, electric projects being developed through IPPs and in Joint Venture modes, the state will be  able to fully meet the local demand and to export the surplus power to other states. This will be a major avenue for revenue generation to Sikkim. The revenue generated from sale of free power alone will be a major sustainable resource base that could be used for economic and social development of the State. In addition to above, there are several advantages like employment generation and local area development.