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 CURRENT ISSUE JAN 21, 2002  

COVER STORY: DUAL CITIZENSHIP

Post-dated Cheque
    Uk Special
DAY OF THE NRI

January 9 every year will be celebrated as Pravasi Bharatiya Divas (NRI Day). That was among the announcements Prime Minister Atal Bihari Vajpayee made last week while accepting the recommendations made in three interim reports submitted to the government some months ago by the High Level Committee on the Indian Diaspora. To further recognise the contributions to India being made by PIOs, the prime minister said ten NRIs would be selected to receive Pravasi Bharatiya Samman Awards every year. A jury would announce the chosen names on August 15.
The third report which relates to a reduction of the fees for the PIO Card Scheme was also accepted. Though launched three years ago to facilitate travel to and investment in India along with other privileges to overseas Indians, the cards did not take off. Just about 1,200 to 1,500 were sold at an exorbitant rate of $1000 a card. The new fee structure will be two-tier, says a Ministry of External Affairs official. The details, he says, are still being worked out but PIO cards will now cost less in developing countries than they will in developed ones.

But there's skepticism too. Says Jagmohan Singh of NRI Institute which offers PR services and conferencing platforms to visiting non-residents: "There have been promises of dual citizenship for ten years now. This is a post-dated cheque for next year. Let's see if it will be encashed or not."

Though the report is not public, its executive summary lists a number of recommendations that have been made, and which will bring about a sea change in the "engagement" of Indians settled abroad to contribute to the social and economic progress of India, as well as measures for their own welfare.

One of the most frequent requests made to the HLC was the provision of single window clearance of all NRI concerns -from dealing with the authorities, investment bureaus, local administration or any other Indian body.

To harness the enormous reservoir of skills and funds of NRIs, the committee has recommended the setting up of an autonomous, empowered body structured on the lines of the Planning Commission, to be headed by the Prime Minister as ex-officio chairperson. The organization would have a full time deputy chairperson at the rank of a Cabinet minister and five full-time members, a governing body and an advisory council. An NRI would be eligible to become a member of such an organization provided he or she resides in India for a substantial part of each year of his or her tenure. Overseas Indians would also be eligible to become members of the governing body and advisory council. HLC recommends that the proposed body interact with Parliament through a sub-committee of 11 MPs as part of the Standing Committee on External Affairs.

    Uk Special
WHAT THE BIG DADDIES THINK

The mood is jubilant as after long years of waiting for dual citizenship and the advantages it would bring them, Indians living abroad finally sight a silver lining. The issue is close to the hearts of many a businessman and traveller.

"There is a bridge now so traffic can move both ways."
Bhishm Agnihotri, USA

"A good idea, specially for those who grew up there."
Rajat Gupta, USA

"It's long overdue and of great benefit to the NRI."
Mathew Paniker, UK

"At last India has joined first classleague thinking."
Avtar Litt, UK

"I didn't have a brewery in India.
This is a greatmove."

Karan Bilimoria, UK

The committee recommends that a minister-level officer be appointed at Indian missions with a sizeable diaspora and advisory councils comprising eminent NRIs and PIOs advise the mission on matters related to the diaspora. It also suggests that state governments set up nodal bodies on the lines of the organization at the Centre to deal with NRI concerns in their respective states.

"Brain drain will always be there," says Rajat Gupta, the In New York-based managing director of McKinsey. "You have to harness it and not seek to stem it." That may be possible through the committee's suggestions to set up a foundation to receive donations, simplify the Foreign Contribution (Regulation) Act, 1976, to quicken the inflow of funds, and establish a dispute resolution mechanism. Voting for the prime minister's proposal of the overseas Indian paying a Rashtriya Dakshina-a spin off from the traditional guru dakshina-Gupta called it an "appealing notion through which Indians abroad could pay back to their country for providing high quality education at a low cost to them." The Indian diaspora, though not yet comparable to the Chinese diaspora, "is beginning to play a role", says Gupta, who terms dual citizenship "a very good idea. Especially for the generation of Indians that grew up there and then came to work out here."

NRIs have pointed out various factors that restrict their movement in India. After landing in India, if one suddenly plans to stay for more than two weeks he/she has to register with a local police station, which is a major inconvenience. In the United Kingdom, a Commonwealth citizen is not required to do that. The report addresses this issue, requesting better dissemination of information about the government's requirements for NRIs and PIOs, such as tax clearance certificates prior to departure if stay in India exceeds 120 days and where to report if the duration of the visit exceeds 180 days.

NRIS can expect their investments to move on the fast track

Overseas Indian Labour faces special problems which the committee has made recommendations to address. These include establishing a welfare fund for repatriated overseas workers in distress; the monitoring and supervising of employment contracts; pre-departure counselling; launching insurance schemes to cover risk faced by overseas workers; negotiating Standard Labour Export Agreement with the host country among others. In a bid to prevent abuse, the committee also recommended a special cell to offer free legal counselling to parents contemplating marrying their daughters to NRIs/PIOs.

Special economic zones exclusively for projects to be set up by NRIs and PIOs have been mooted, as also better protection to NRI/PIO bank accounts and fast-track mechanisms to reslove monetary fraud and property disputes in India. That's good news for Karan Bilimoria, owner of Cobra Beer, who has been lobbying for dual citizenship since a long time. Cobra Beer, which had started at about the time of India's liberalisation process, was hampered from entering India because of "too much red tape". Says Bilimoria: "My wife is a South African and she holds both British and South African passports. She has all the rights in South Africa as she has in Britain." Things weren't so convenient for Bilimoria himself, though. "I have to get a visa to go to my home country," he says. "I can't buy agricultural property and if I want to set up a brewery outside an industrial area I have no option. Even to sell my non-agricultural property, one has to wait for over three years for repatriation of money. To me, keeping doors closed is not a good policy."

Perhaps that's all set to change now. HLC has sought NRI participation in tourism, education, the health sector and in media and suggested cultural exchange on the lines of the British Council and Alliance Francais. Sharing of technology and intellectual pooling has also been sought, as has greater cooperation and collaboration among NRIs and resident scientists and professionals.

The news of the HLC's recommendations for the Indian Diaspora have been received with joy and excitement. No more serpentine visa queues to travel to the homeland. In London, the business community expressed excitement at the prospect of investing in India. Others were keen to buy property, shares and to be involved in the exchange of intellectual and scientific ideas. Welcoming the move, Dr Avtar Litt of Sunrise Radio said, "It is long overdue -almost 20 years overdue. At last India has joined the first-class league of thinking. Home Minister L.K. Advani had promised that if their party got elected they would give dual citizenship. Then the trail went cold. I am glad that it is finally being rectified."

Still others view the move as their loyalty being finally rewarded. The emotional and practical handicap of their inability to participate in Indian business wholeheartedly due to red tape may well become a thing of the past. NRI investment will have equal protection under law, they claim and their contribution to India's progress will be assured. "We have big plans to invest in India," says Litt. "We have been trying to invest in India for quite some time but we do not get licensing because I am not an Indian citizen. This has really provided us with an opportunity to invest in our country."

Dr.Rafiq Dossani South Asia Initiative, Asia Pacific Research Center, Stanford University said, "Dual citizenship is the primary material initiative and will satisfy the wishes of many." The new recommendations, if adopted hold brighter prospects for the future too. Because dual citizenship would also mean that second, third and forthcoming generations can maintain a close relationship with their country of origin. Children born to NRIs can choose to have an Indian passport-a ticket to experience the rich culture and heritage of the country of their origin.

-With Ishara Bhasi in London and Anil Padmanabhan in New York

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