Lacunae to be plugged in PIO cards scheme
From T.V.Lakshminarayan
Tribune News Service

NEW DELHI, Nov 13 — 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.