The Sikkim government on Wednesday, 19 August defended its proposed AI-based integrated online permit system for restricted and protected areas, clarifying that regulatory authority over permits and revenue collection will remain firmly with the Tourism Department even if a private agency is brought in to manage the technology and online portal. The announcement comes amid growing concerns over revenue leakages in the state's existing permit mechanism.

What the Proposed System Entails

Tourism Secretary Raj Yadav said the arrangement is designed to simplify the permit process, plug revenue gaps, and ensure a larger share of tourism earnings flows to local operators, drivers, and vehicle owners. He was clear that outsourcing technology functions would not constitute privatisation of the permit system.

Under the proposed model, a private agency could develop and manage the online portal and AI-driven functions, while the Tourism Department retains authority over permit issuance. Police would continue to conduct security checks, and Sikkim-based tour operators would be granted direct access to the platform.

'The department will sign all agreements. Therefore, the stake and overall control will remain with the government,' Yadav said.

The Revenue Leakage Problem

The proposal is driven in part by a significant data discrepancy that officials say warrants investigation. Tourism Department records show permits were issued to approximately 34,000 people, while police data recorded 17.64 lakh visitors to the concerned areas during the same period.

Yadav cautioned that not all visitors in the police figure would necessarily be permit-eligible tourists, but acknowledged the gap was too large to ignore. The department collected only around ₹3.64 crore in the period under review, though Yadav declined to put a number on the alleged revenue loss.

Key Features of the New System

The new system would replace the current fragmented permit process with a streamlined mechanism, including single permits covering multiple destinations wherever applicable. The government also intends to eliminate intermediaries, giving authorised local tour operators direct access to the platform.

Yadav stressed that the system's primary objective is reducing red tape and easing access to protected and restricted destinations — not serving as a security measure. Sikkim-registered taxis would be permitted to operate in these areas under the model, helping retain tourism revenue within the state.

Fee Revision and Additional Services

Yadav also defended proposed fee revisions, noting that the existing ₹200 charge was set under a 2007 notification and has not been adjusted for inflation in nearly two decades. The government is additionally considering value-added services such as advance permit confirmation and insurance-related assistance for tourists and drivers.

The final agency selection and implementation structure remain undecided. The department will hold another round of stakeholder consultations before placing the proposal before the Cabinet. Once approved, officials expect the system to be operational within approximately two months.