PM announces PIO card for
overseas Indians
Tribune
News Service
NEW DELHI, Nov 12
Indians living abroad with alien passports are to be
issued a Person of Indian Origin (PIO) card that would
confer upon them a range of special benefits, including a
visa-free regime and several other facilities in the
economic, financial and educational fields, the Prime
Minister, Mr Atal Behari Vajpayee, announced here today.
The government is also
considering the long-standing demand of the non resident
Indians (NRIs) to provide for "dual
nationality" for people of Indian origin settled
abroad. In this regard it has been decided to appoint a
committee that would hold wide consultations, elicit
public opinion, examine the pros and cons of different
options and formulate recommendations on the question of
dual nationality or any suitable variant. The committee
would give its report within three months, Mr Vajpayee
said.
Inaugurating a two-day
conference on "The Global Indian
Entrepreneurs", organised by the Federation of
Indian Chambers of Commerce and Industry (FICCI) and the
Indian Investment Centre here, Mr Vajpayee said the
details of the PIO card scheme had been worked out and it
would be announced very shortly. The PIO card would be
extended to persons of Indian origin settled in countries
to be specified by the government, he said.
Very broadly, a PIO card
holder will enjoy parity with NRI in respect of
facilities presently available for the acquisition and
transfer of immovable properties in India, admission of
children to educational institutions in India and
preference in various housing schemes of central and
state government agencies.
The decision to issue PIO
card is in pursuance of the announcement made by the
Finance Minister, Mr Yashwant Sinha in his budget speech
on June 1, this year.
Paying tributes to the
continued support and commitment of the people of Indian
origin to their motherland, the Prime Minister referred
to the success of the State Bank of Indias
Resurgent India Bonds which fetched $ 4.2 billion in
August. "It demonstrates your appreciation of the
economic outlook of the future," Mr Vajpayee said.
He said the subscriptions
to the bond were in addition to the savings of more than
$ 20 billion, which the NRIs continue to maintain in a
variety of instruments in India.
The Prime Minister pointed
out that a sum of about $ 12 billion had come in each of
the last two fiscal years as direct remittance from
Indians abroad.
Relating to the problems
faced by the NRIs in India, the Prime Minister said:
"We cannot overnight, create an enabling environment
that matches what is prevailing in some of the developed
countries." There were competing claims on the
countrys limited resources and there was a need to
be cautious about emulating models of development that
were alien to Indias cultural milieu or not in line
with its level of development. "Yet, there is no
denying there is a need for change," Mr Vajpayee
admitted.
Saying that there was a
need to bring about Indias national renewal, he
said the NRIs could provide some valuable suggestions and
advice in this regard. It had been decided to set up a
suitable mechanisma forum in the government for
effective on-going consultation with the NRIs. The Indian
Investment Centre is also proposed to be strengthened and
restructured to enable it to address the investment
concerns of the NRIs in a more effective and focussed
manner.
The Prime Minister
referred to the complaint of some NRIs that when they
receives dividend on non-repatriable investments they
were being asked to furnish an undertaking that they
would pay tax if required to along with a certificate
from a chartered accountant. Mr Vajpayee admitted that
this was an aberration as dividend in the hands of
individual investors was now not taxable in India. He
asked the NRIs to give more information to the Finance
Minister so that he could redress the problem.
Giving a detailed account
of various steps taken by his government to boost the
Indian economy, the Prime Minister said "economic
reforms are here to stay and, if any thing; the process
is being accelerated".
Referring to criticism
that he was a "dreamer" and dreams seldom
materialise into reality, Mr Vajpayee said: "I beg
to differ". He said a case in point was the
governments plans to start within this year and
from 20 different places across the country a six-lane
east-west and north-south corridor covering 7000 km and
estimated to cost Rs 28,000 crore. The six-lane corridor
project, he said, had attracted a lot of comment and some
cynicism.
"Yes it is a dream; a
7000 km, 6-lane corridor linking Silchar in the North
East to Saurashtra in the West and Kashmir to Kanyakumari
is a magnificent dream. A dream for India. If you
dont dream, how will your dreams come true?"
the Prime Minister said. He said questions had been
raised about the financing involving 28,000 crore.
"For a nation that saves more than three lakh crore
rupees per year, a country that imports nearly 28,000
crore worth gold, largely for savings, has ample
resources for several projects of this scale and
dimension", he said.
Mr Vajpayee pointed out
that the north-south-east-west corridor when completed
would save Rs 15,000 crore a year just by way of
petroleum products saved and a like amount in wear and
tear of the vehicles and life and limbs of drivers, not
taking into account the time saved and efficiency
achieved in the transportation of goods.
The government planned to
create financial instruments to channelise private
savings and investments in the grand development project,
he added.
The Prime Minister
reminded the audience, comprising overseas Indians from
25 countries in the world, that Bhakra Dam in Punjab was
viewed as an impossible dream in the early fifties and
more recently the tunnel under the English Channel
linking Britain and France.
The FICCI president, Mr
Sudhir Jalan said overseas Indians could invest as much
as $ 100 billion if the policy atmosphere was
unequivocally conducive at all levels of government.
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