Govt mulls life-long NRI status for returnees

Delegates attending the Pravasi Bharatiya Divas in Kochi yesterday.

By Ashraf Padanna/Kochi

The federal government is considering providing life-long non-resident status to Indians who return to India after spending long years abroad, Minister of State for External Affairs E Ahamed said here yesterday.

The minister was speaking at the 11th annual conclave of Indian diaspora which started in the Kerala port city yesterday with a special session focusing on expatriates living in the Gulf countries.

Prime Minister Manmohan Singh, who arrived here yesterday evening, will formally inaugurate the Pravasi Bharatiya Divas celebrations today morning and President Pranab Kumar Mukherjee will honour 15 people of Indian origin with outstanding contributions tomorrow.

The daylong session yesterday on issues concerning Indian expatriates, attended by Overseas Indian Affairs Minister Vayalar Ravi, Ahamed, Kerala Chief Minister Oommen Chandy and top bureaucrats and Indian diplomats saw representatives of expatriate groups from the six Gulf Co-operation Council countries and Yemen raising their concerns during their stay abroad and after they return.

Ahamed told Dubai-based C George the proposal for lifelong NRI status to those who return for good was under the consideration of the federal government. NRIs enjoy special benefits, including exemption from paying income tax, only for a year after their permanent return.

George wanted the government to extend the NRI status to the returnees in respect of their NRE accounts in order to encourage them to park their money back home.

Some of the delegates urged the government to permit Air Kerala, expected to be launched soon, to operate international flights. Chandy, who said he expected the federal government to clear the project without delay, refused to set any date for the airline’s commencement.

He, however, ruled out Air Kerala tying up with any other company to fly abroad.

Non-Resident Keralites Affairs Minister K C Joseph accused Air India of giving step-motherly treatment to passengers on the Gulf sector and said the only option for the state government was to expedite the Air Kerala project which the government was determined to do.

Responding to widespread criticism against the ceiling on gold allowed to be brought in by Indians, Ravi said Finance Minister P Chidambaram had promised to raise the cap and he expected an announcement in the annual budget to be presented next month.  

The delegates wanted free tickets to all those who cannot afford the airfare to be paid from the Community Welfare Fund available with the Indian embassies. Many of them demanded a rehabilitation package for the returnees.

They also wanted the effective intervention of the government in getting hundreds of Indians languishing in various jails released. They suggested a free legal aid facility in all embassies to help such people.

The NRIs also expressed concern over lack of facilities for higher education for their children. They wanted the government to implement former prime minister Atal Behari Vajpayee’s promise to set apart 5% quota at normal fees in all engineering colleges for children of Indian workers in the Gulf. Vajpayee had made the proposal in his inaugural address at the 2004 PBD.

About 2,000 participants from around 70 countries are participating in the PBD, which is being held in Kerala for the first time.

Mauritius President Rajkeswur Purryag, who arrived in India on a weeklong state visit on Thursday, will be the chief guest at the inaugural function.