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 !

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02  July  2016

www.hemenparekh.in / blogs