Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday 3 July 2016

RE: A TIME FOR A BOLD STEP


Dear AGP,

Glad that you liked this

I have been regularly sending my suggestions / blogs , not only to PM but also to a number of Ministers , for the past 2 years

On 06 Nov 2014 , I even compiled a 150 page hard-copy booklet and sent copies to PM and the Commerce Minister , Ms Nirmala Sitharaman and Shri Amitabh Kant ( who did reply occasionally )

hcp


From: arun patkar [mailto:patkarag@yahoo.co.uk]
Sent: Saturday, July 02, 2016 7:55 PM
To: Hemen Parekh
Subject: Re: A TIME FOR A BOLD STEP

Excellent scheme .Suggest forward it directly to PM withoot delay.

    agp

On Saturday, 2 July 2016, 13:36, Hemen Parekh <hcp@recruitguru.com> wrote:


FDI  :  By any other name  ?

Many years ago , Shakespeare wrote :

" A Rose by any other name , would smell as sweet "

English-speaking Americans have turned this around to say :

" FDI by any other means , would work as well "


They are calling their FDI , " Invest in US and get Green Card " scheme

Officially called , " The EB-5 Immigrant Investor Program " , it invites foreigners to invest in USA , through following routes :

#   " Direct Investment Route " , which requires,

     *  Starting a new Business and creating at least 10 full time local jobs by bringing in $ 1 million

        But this process is very cumbersome


#   " Central Investment Program " , which requires,

     *  Bringing in and investing $ 500,000 in a Government approved EB - 5 project in America

     *  Get your full money back after 5 years

     *  If you are lucky , you may earn 0.5 % - 1 % return every year


In 2015 , 18,000 foreign citizens invested ( approx ) $ 9 Billion in US under these programs  - peanuts compared to a total of over $ 231 billion worth of FDI in USA in 2014 . Among these were 111 Indians


Now , I admit that no foreigner is dying to get a " Green Card " in India - and therefore unlikely to take advantage of a similar scheme , if we were to launch one !


But , we can come up with a scheme that will motivate 111,000 Indians to bring in and invest $ 500 billion within ONE YEAR !

( remember that amount siphoned out of India illegally and stashed abroad by Indians , between 2005-2015 ? )


MY  SUGGESTION :


NAME  OF  THE  SCHEME :

    EB-3 Scheme ( Earn by Bring Back Black )


WHO  CAN  INVEST  ? :

    Any Indian citizen who has stashed away undisclosed / illegal assets abroad


WHERE  CAN  THEY  INVEST  ? :

    Scheme A >  Repay those loans taken from Indian Banks forming Rs 7 lakh*crore of NPA

                        Willful Defaulters repaying bad loans will be spared prosecution

                        No need for Govt money ( er , Tax-Payer Money ) , to bail out those banks !
 
    Scheme B >  Invest in State-wise Infrastructure SPVs ( not Central SPVs ) , managed by Private Sector

                       These will be approved by each state for implementation of the following projects within the state:

    *  Roads / Bridges / Ports / Airports / Smart Cities / Dams / Lakes-Ponds for water conservation / Forestation

    *  Healthcare / Education / Skills Development / Swatchh Bharat / Methane from Garbage  / Digital India

    *  Renewable Energy / Manufacture of Electric Vehicles / Setting up of Electric Charging Stations etc

   
    All such State SPVs will need to be approved by the Central Government , for which the State will need to agree
    for full cooperation in implementation of the Central River Interlinking Project


HOW  MUCH  MUST  THEY  INVEST  ?

    No upper limit but a minimum of Rs 10 crores


WHAT  PROTECTION FOR  INVESTORS  ?

    No questions asked as to the source of funds , whether brought in from abroad using official channels or
    deposits made in CASH from local lockers ! No penalty , nor any civil / criminal action against investors


WHAT  INCENTIVE  FOR  INVESTORS  ?

    All interest / dividends paid out by the SPV , will be tax-free for 10 years if re-invested in any other similarly
    approved SPV



HOW  LONG  CAN  THEY  AVAIL  OF  THIS  SCHEME  ?

    This scheme will open on 01 April 2017 and close on 31 March 2018


HOW  CAN  INDIA  BENEFIT  FROM  THIS  SCHEME  ?

    *  Inflow of $ 500 Billion ( Rs 34 lakh*crore ) within ONE YEAR

    *  Generate 50 million jobs by 2020

    *  State Governments will go all out to

        >   Motivate private sector to set-up Infrastructure SPVs within their State

        >   Vastly simplify government approval process

        >   Eliminate / Reduce , rules , procedures and permissions

        >   Introduce " State level Incentives " to attract those BLACK MONIES into SPVs



I believe , with introduction of EB-3 Scheme , there will be such fierce competition between the States that India's rank in " Ease of Doing Business " will jump from current 130 to within TOP FIVE !


And all of this without having to pass any law in the Parliament - and with least dependence on beaurocrats !

Dear Policy Makers :

With two years already gone without making much of a dent ,  I urge you to stop tinkering with INCREEMENTAL IMPROVEMENTS

Promising freebies before State Elections , won't take you beyond 2019 !

----------------------------------------------------------------------------------------------------------------------

02  July  2016

   
       
        
    



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