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
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
www.hemenparekh.in /
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