The Centre's proposed scheme to
issue persons of Indian origin (PIO) cards to people of
Indian origin holding alien passport will not be
applicable universally as the government plans to put
certain restrictions on the persons applying for the cards.
One such restriction proposed is that the PIO card will
be extended to only those persons of Indian origin who
are settled in countries specified by the government.
There will also be restrictions to ensure that people
with a dubious background, who could be a potential
threat to the country's security concerns, don't have
easy access to India under the visa-free regime
proposed under the scheme.
All lacunae in the scheme are being plugged and
ambiguities removed before its proposed announcement.
Sources connected with the exercise told TNS that the
scheme is likely to be announced in within month.
The sources said it had been proposed that the
definition of a Person of Indian Origin would include a
person whose either or both grand parents were of
Indian origin. Technically, under this definition
hundreds of thousands of people residing in Pakistan,
Nepal, Bangladesh, Sri Lanka and Burma will become
eligible for the PIO card. By making the scheme country
specific, the government hopes to restrict the facility
to those PIOs who need to be in touch with their
motherland not for economic support but for
educational, cultural and other needs.
Broadly speaking, a PIO card holder will enjoy parity
with non-resident Indians in respect of all facilities
presently available to the acquisition and transfer of
immovable properties in India, admission of children to
educational institutions in India and under the various
housing schemes of central and state government
agencies.
Non-resident Indians under the Income Tax laws are
defined as those Indian citizens who are out of the
country for more than 183 days. The Foreign Exchange
Regulation Act defines them as those Indians who don't
intend to return. The PIOs, on the other hand, are
those persons holding alien passports but having Indian
lineage.
The issuance of PIO cards is expected to benefit not
only a majority of the estimated 15 million people of
the Indian origin residing abroad but also bring
substantial economic benefits to India.
The distinction of a PIO with other foreigners and
bringing them at par with NRIs will enable them to
participate in the economic development of the country
more effectively.
The PIOs when brought at par with NRIs will get
automatic approval from the Reserve Bank of India for
investing 100 per cent equity in the high priority
areas. The approval will include full benefits of
repatriation of capital invested and income accruing
thereon. The PIOs will also be eligible to enter
industries reserved for the small scale sector provided
they export 75 per cent of their production.
A larger number of Indians residing abroad will be
eligible to participate in various savings schemes
launched by organisations like the Unit Trust of India
and the State Bank of India. The SBI Resurgent India
Bond recently managed to garner $4.2 billion from the
NRIs alone and if this was opened to the PIOs the
amount could have been much more.
The implementation of the PIO card scheme will greatly
enhance the participation of the PIOs in foreign
private investments in India. Further, they may be
encouraged to directly transfer appropriate business
technology and professional expertise thereby creating
a more efficient Indian industry.