Marginal
/ Peripheral / Incremental ?
Hindustan
Times ( 01 Sept 2016 ) carries a news report titled :
"
Government approves permanent residency status for foreign
investors "
Following
are the highlights of the report :
" The Centre approved on Wednesday a plan to allow foreign
investors to settle, emulating a policy in countries such as the United States
and Singapore to woo investment from abroad.
Foreigners need to invest 100 million
rupees ($1.49 million) over 18 months, or 250 million rupees over three years,
resulting in jobs for at least 20 resident Indians every fiscal year to be
allowed to settle, the government said in a statement.
Those who meet the criteria would be
eligible to stay for 10 years. The residency permit can be extended by a
decade. Up to now, such investors have been eligible for business visas lasting
up to five years.
NDA government has pointed to a 23% rise
in foreign direct investment (FDI) to $55.5 billion in the fiscal year to March
as proof the policies are gaining traction.
Investors with the permanent residency
status would be free to buy one home, and spouses and dependents would be
allowed to take private jobs and study, the government said
"
QUESTION :
Other than some very poor people of nearby Bangla Desh , which
other " foreigners " are " itching " to get a
Permanent Residency Status in India ? - even without having to invest and
pot holes not coming in the way !
ANSWER :
None !
Even if some of that FDI ( $ 55.5 billion ) was made by "
Individuals " , it was certainly not for getting a Permanent Residency !
On Sept 01 , 2017 , if someone files a RTI application , he will
be informed that this new initiative has managed to attract 10 foreigners to
come forward and invest Rs 100 cr !
But , if NDA government is serious to attract , not Rs 100 cr , but Rs
100 LAKH*CRORE , then it needs to take some BOLD
/ GAME-CHANGING measures , such as one described in my following
suggestion ( earlier sent as email to all central Ministers ) :
----------------------------------------------------------------------------------------------------------------------------
Friday, 1 July 2016
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 bureaucrats !
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 !
--------------------------------------------------------------------------------------------------------------------------------
01 Sept 2016
www.hemenparekh.in / blogs
hemen
parekh
Marol
, Mumbai , India
(
M ) +91 - 98,67,55,08,08
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