Policy has been framed for award of construction and maintenance contracts to the people of the same area where the work is to be implemented. This has been done to generate employment in the rural areas and also build expertise among the rural youth.

The policy allows the award of tenders to the tune of RS.10 lakhs at the Panchayat level; Rs.20 lakhs at Block level or at the level of the A.E; RS.50 lakhs at the Sub Divisional level or at the level e of D.E.; and RS.100 lakhs at the District level or at the S.E. level.

In power decentralization, Sikkim has been the leading state of the country. To introduce the system of "Peoples administration" power has been transferred to villages through panchayat Today the villagers themselves carry on developmental works in the villages. A system to implement projects decided upon by the joint decision of the people has been put into practice.

To bring about village development through meaningful inclusion of the people the Sikkim Panchayat Act 1993 has been amended. After the amendment the state Election Commission was formed in 1997. Then for the first time party based elections in the panchayat were held. In these elections, as per the provisions of the Act, reservations of seats were extended to tribal schedule castes, OBC and to women.

Party based second Panchayat Election was held in 2002. Even in this election he reservation policy was kept intact.

For rural development 10% budget is canalized thought panchayat. as such Gram Panchyatand Zilla panchyats received Rs. 10 lakhs and Rs. 60 lakhs for development works directly to the Gram Panchayats and Zilla Panchyats.

The Adhyakshas and Upa-Adhyakshas of Zilla Panchyats have been given status of Ministers of State and Deputy Minister, respectively. A "Swavivekadhin fund" of Rs. 60,000/- and Rs. 50,000/-has been created.

Primary schools primary health centre, subsidiary health centres, VLO centre, Library, community information Centre, village tourism, small scale irrigation projects, community Building and ground have been transferred to Panchayat units.

Policy which allows Gram panchayats to plan developmental activities of their area, to implement and evaluate them has been implemented.

To reduce the day-to-day burden of rural peoples' representative the government has introduced a system of monthly honorarium to them.

 To encourage rural people's representatives to work for the people the government has introduced "Panchayatshri" awards.

Libraries have been established to keep Panchayat members a breast with the latest happenings.

Of the 166 Gram Panchayat of the state 122 can boast of their own Panchayat building today.

Today, Zilla Panchayats are being manned by senior and experienced officers of the rank of Joint Directors.

 Like in towns the villages also have been provided with all types of facilities.

Local problems are resolved through panchayats and NGO at the local level.

With a view to boost peoples' confidence, the Government has adopted a strategy that mixes power decentralization, people's involvement and benefit centric activities. Through this approach repair of maintenance of rural water supply, sanitation facilities and durable assets etc. are ensured.

It is proposed to set up Community Information Centre in all the 166 Gram Panchayats.

Regularly training workshops are organized to increase the expertise of rural peoples' representatives.

Under Pradhan Mantri Gram Sadak Yojana 834 kms of road at the total approved cost of RS.285 crore are at various stage of completion.

All the 29 subjects as per the IX Schedule have been transferred to Panchayats for enhancing their capacity to work.

Computer training programs in consonance with the day to day need of the Panchayat members are being imparted.

 In the country, Sikkim ranks third in the policy initiatives for empowering Panchayats through power decentralization.