NRI Law Group India: Oct 18, 2013

At the State/ Union Territory (UT) level, there are Department of Industries and/or Industrial Development Corporation or related agencies which deals with various facets of industrial development and investment scenario in respective States/ UTs. They provide vital guidelines to the investors worldwide regarding the business opportunities in the States, availability of financial assistance for new entrepreneurs, etc. They are actively involved in undertaking several promotional activities so as to attract overseas Indians, that is, Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), into the States/ UTs in terms of investments, setting up industrial units, etc. Some of such Departments or agencies include:-

State-wise initiatives taken at Organisational set up level for some of the States:-

1. Gujarat - There is a NRI Division set up by the Government of Gujarat with a view to establish effective communication with Non Resident Indians of Gujarati origin in various parts of the world. The main objectives of the Division are to:-

prepare and maintain a comprehensive database about NRIs of Gujarati origin.
study from time to time social and cultural issues of NRI of Gujarati origin and take steps to formulate schemes for meeting their requirements.
take effective steps to survey and assess the technical and professional skills of NRIs and to dovetail the same in the developmental efforts of the State.
create a database on Non Resident Gujaratis (NRGs), highlighting the professional areas of interest.
enable Government of Gujarat and its agencies to communicate with NRGs with relevant interest.
facilitate Government of Gujarat to initiate steps to address the specific needs of NRGs in different fields.
tap the technological, managerial and financial resources of the NRI so as to upgrade the technical and professional skills and the human resources of the State, for the economic and industrial development of the State.
channelise the savings and surplus financial resources of the NRIs in to the developmental efforts of the State for mutual benefits.
monitor the general welfare of the NRI and, in times of crisis, identify specific problems of Gujarati Non Resident Indians groups and take up the same with and through Government of India.

In order to facilitate the achievement of above objectives, the Government have in addition set up the 'Gujarat State Non-Resident Gujaratis' Foundation (NRGF)'.

2. Madhya Pradesh - In the State, there is a separate Centre called Madhya Pradesh Facilitation Centre for NRIs which has been set up to:-

facilitate NRIs to redress their personal and business issues related with Government of Madhya Pradesh.
provide information to NRIs about investment opportunities in Madhya Pradesh.
prepare the database of NRIs of Madhya Pradesh origin and/or NRIs interested in Madhya Pradesh.
act as one point contact with Government of Madhya Pradesh.
organize seminars, workshops, fairs and exhibitions.
help NRIs in planning their investments and exploring business opportunities.

3. Uttar Pradesh - In the State, the 'Udyog Bandhu' (Friend of Industry) was set up as coordination agency between entrepreneurs and Government with a view to facilitate congenial environment for progressive industrial development in U.P. It aimed to encourage entrepreneurs and function as a one-stop source of information on availability of basic requirements like land, power, finance and other applicable incentives. Over the years, it became independent body and has been functioning as catalyst for investment promotion as well. It is facilitating investment in industrial and service sectors related to different Government departments as well as solving various problems of existing and up-coming industries. It has also been carrying out greater responsibilities encompassing its role for industrial promotion, assisting Government in policy formulation, getting studies conducted regarding investment promotion, etc. That is, it has emerged as the major interaction centre for entrepreneurs and has been organizing high level conferences on industry related issues.

There is a NRI Cell in the U.P. which has been created to offer single window facility to all NRIs and PIOs of the State. Udyog Bandhu is a nodal agency for the NRI cell. This cell is exclusively dedicated to deal with all the matters relating to Overseas Indians with a view to effectively redressing their grievances as well as to play a proactive role in engaging them and providing escort services to invest in mutually beneficial projects of the State, by constantly networking with NRIs/ PIOs/ their associations abroad. This cell acts as a bridge between the State and NRIs abroad for enhancing cooperation in the development of infrastructure, education and health sector as well as investment in industry, promotion of traditional crafts enterprise and other areas of mutual interest.

4. Kerala - The Non Resident Keralites Affairs Department (NORKA) was set up by the Government of Kerala in 1996, in order to ensure the welfare of the Non Resident Keralites (NRKs), redress their grievances and safeguard their rights. Since then, NORKA has been playing a vital role in the lives of NRKs, supporting them in times of need and lending them a helping hand in every possible means. The major issues dealt by NORKA are:- assistance to stranded Keralites; complaints on non receipt of salary, accommodation etc.; assistance in bringing the mortal remains of NRKs to Kerala, subject to certain conditions; complaints on illegal overseas recruitment agencies; enquiries on investment opportunities in Kerala; enquiries on Pravasi Suraksha Kudumba Arogya Scheme; problems faced by the NRKs in State Government Departments; etc. The latest addition to NORKA's activities is the Non Resident Keralite's Welfare Agency (NORKWA), whose activities include:- introduction of a pension fund for NRKs; rehabilitation of NRK returnees; etc.

Further, Norka-Roots is the field agency of the Department of NORKA, set up in 2002. It acts as an interface between the Non-Resident Keralites and the Government of Kerala and a forum for addressing the NRKs’ problems, safeguarding their rights and rehabilitating the returnees. Its major activities are:-

Welfare of NRK's
Heritage village for parents of NRK's
Promotion of regional development with the active participation of NRK's
Social Security Network for NRK's
Relief fund for rendering immediate assistance to NRK's in need
Organization of annual meets for NRK's
Resettlement and reintegration of NRKs returning to Kerala
Employment mapping
Facilitate the creation of a high calibre human resource pool
Data Bank of NRK's
Channelising investments to the State

5. Karnataka - 'Karnataka Udyog Mitra' has been constituted under the aegis of the Commerce and Industries Department, Government of Karnataka, with a view to promote and facilitate investments as well as assist investors. It is a 'single contact point' for all investors who are looking at setting up businesses in Karnataka. As the nodal agency, its role is to facilitate investments and execute initiatives to enable a smooth transition, from receiving an investment proposal to the eventual implementation of the project. It is the Secretariat for grant of approvals and sanction of infrastructure facilities for approved projects. It provides an environment that helps investors handle investment processes and procedures with ease.

There is a 'Karnataka Diaspora Cell' which has been set up as a special initiative of Karnataka Udyog Mitra. The objectives of the Cell are to:-

forge a symbiotic relationship between Karnataka and its Diaspora.
provide information on Karnataka, as well as developments and investment opportunities in the State across all potential sectors.
facilitate investors among NRIs (Non-Resident Indians) and PKOs (People of Karnataka origin) in setting up their ventures in the State.
draw up the knowledge reservoir of Diaspora for development of the State.
promote Karnataka's culture and heritage overseas.
act as a window to provide information to Diaspora about education facilities, health facilities available in Karnataka and other information of interest to the Diaspora.

The functions of the Cell include:-

Undertaking activities to promote interactions/ exchange of ideas and involvement of Diaspora in projects in specific domains - rural development, industry and enterprise, health care, culture, language, philanthropy and communal harmony.
Facilitating interactive meets of Diaspora with persons of eminence in various fields, based on requests from the Diaspora.
Organizing annual meetings, prior to Indian Diaspora event organized by Government of India.
Creation and maintenance of database on NRI/ PKO associations, individuals categorized on their professional back ground of reciding place. In addition, it contains contact information on Indian Diplomatic Mission abroad, concerned departments of State Government and Union Government.
Publication of News letter / Circulars / E -mail to subscribers.

6. Punjab - There is NRI Zone (developed by Department of NRI Affairs, Government of Punjab) - www.nrizone.in. It is a valuable tool for NRI buyers looking to extend their reach and streamline their buying efforts. Buyers are able to search companies that are precisely indexed to a proprietary classification system of over 69,000+ product and service types. While, it equips the NRI seller with a state-of-the-art, precision marketing tool. It provides the seller with a buying audience that is global and precisely focused. Sellers and their catalogues can be identified and viewed by buyers in 16 languages.

Then, there is NRI Sabha Punjab which has been set up to:-

help the NRIs in protecting their rights in Punjab especially in property related matters;
provide facilities to NRIs on their visit to Punjab;
pursue the interests of the NRIs with the State and Central Government;
help in investment of NRIs in Punjab for economic development;
maintain Cultural and ethnic bonds of Punjab with the NRIs especially with the new generation of the NRIs;
promote social welfare in Punjab by motivating the NRIs and their friends and relatives residing in Punjab;
provide a forum for the NRIs, their friends and relatives living in Punjab and the Government to join and act together.

7. Odisha - There is a Non-Resident Oriya Facilitation Center in the State which works in liaison with the NRO Cell of Government of Odisha.

As part of the Industrial Policy Resolution 2001, the office of the Odisha Investment and Export Promotion Office (OIEPO) has been set up to promote and facilitate investments into the State of Odisha. The OIEPO is considered as the first point of contract with prospective investors, embassies, chambers of commerce, trade commissioners, international trade/ business organisation and other associations at Delhi and direct them to Team Odisha. The main objectives are to:-

promote Odisha as an attractive investment destination by creating awareness of the location and its competitive advantages.
provide assistance to NRIs from the State in their efforts/ endeavour to invest in or export products from Odisha.
assist in obtaining central level investment/ industrial approvals in respect of projects under implementation in the State.

Governing Framework at State Level

In today's rapidly changing business scenario, there is intense competition between States/ Union Territories (UTs) for attracting investments into their respective economies. Investors generally choose the State/UT that offers best combination of industrial and social infrastructure; technology savvy work force; and presence of business-friendly environment. Accordingly, several policy initiatives and measures are being undertaken by the Governments of various States/ UTs.Over the past few years, more and more Indian States/ UTs are roping in their own NRIs and other Overseas Indians. They are taking continuous steps to encourage NRIs to unleash the existing potentialities of thrust areas in the respective economies as well as to make greater investments accordingly. Overseas Indians are being considered as an important source of foreign direct investment (FDI) into the States/ UTs. The prominent sectors holding huge investment opportunities include: agro-based industries, drugs and pharmaceuticals, IT and ITES, leather products, chemicals, automobiles, electricals, infrastructure, etc.

There are Department of Industries and/or Industrial Development Corporation in each State/ UT to provide attractive investment avenues for industrial development. They undertake several activities for promotion of investment by overseas Indians. Within these departments, there are separate NRI cell or related agencies, like, that of Gujarat, Uttar Pradesh, Karnataka, etc. While, some of other States/ UTs have facilitation centres for NRIs such as Odisha, Madhya Pradesh, etc.Besides, within the existing as well as upcoming industrial policies and Acts of the States/UTs, there are special provisions for facilitating and encouraging investments by NRIs and other overseas Indians, along with industrial development in the State/UT.

Policies and Legislations

The Government of almost all States/ Union Territories (UTs) are making all possible efforts for creating ideal conditions for investments in every sector of their respective economies. They are also working in coordination with Central Government to sustain the pace of development in the country. Accordingly, they have been framing a well structured framework of policies for attracting significant investments into the various States/ UTs. Some of such policy initiatives are:-1. Under the Kerala's Industrial policy, the aim of the Government is to achieve high and sustainable economic growth through rapid industrialization and big leap in commercial activities, without affecting ecology and environment. The policy seeks to create large-scale employment opportunities for the people of Kerala and convert Kerala into an investment friendly destination. That is, it aims to convert Kerala into a favoured destination for manufacturing, agro processing, health services, knowledge based industries and services. It seeks to formulate schemes to attract foreign direct investments (FDIs), including Non-Resident Indians (NRIs) and Non-Residents Keralites (NRKs) to channalise their investible surpluses to the State and, thus, enabling them to harness their expertise in the key areas of manufacturing and services. It also includes setting up of exclusive Industrial Parks for NRI investors.

2. The Industrial Policy of Andhra Pradesh has announced to promote Andhra Pradesh as an attractive destination for industrial investments and foreign investments. FDI is considered as an important way of transmitting skills, knowledge and technology to the State and it is an important driver of industrial performance. Thus, investors are given highest priorities in implementing the projects in the State. The policy further seeks to improve infrastructure in the State by facilitating investment in industrial infrastructure in private sector. In line with such objectives, an autonomous body 'AP Invest' is created for needs assessment and road mapping of FDIs as well as to give special care in providing timely clearances and assistance for setting up of industrial units.

3. In the State of Uttar Pradesh (U.P.), the Industrial and Service Sector Investment Policy 2004 has been announced to achieve all round development of the State by accelerating the pace of growth in the fields of industry, trade, commerce and services. This include strategies like: promotion of private partnership in industrial development; balanced development of tiny, small and heavy sector; promotion of exports; promotion of NRI and FDI investments; assurance for security of life and property; recognition of the role of service sector; etc. The policy recognised that there is an immense potential for attracting investment in the State from NRIs. Also, entrepreneurial skills and capabilities of NRIs belong to U.P. have earned worldwide recognition. The policy thus aims to create attractive environment for investments by NRIs in the State; to make the procedure of investment by NRIs simpler by introducing adequate changes in rules and procedures; to conduct a dedicated survey of NRIs to provide them required facilities; as well as to encourage and persuade NRIs belonging to the State to make greater investments in varied fields like land development, infrastructure, mining, service sector; etc. All these efforts aim to give highest priority to the proposals of Overseas Indians.

4. With a view to promoting investment and trade, the Government of Karnataka formulates and implements the policies of the State with respect to industrial development. It is making all efforts to attract foreign direct investment to the State through its progressive policies and strategies. The federal policy guidelines of the Government of India are also applicable to projects set up in the State. The FDI proposals approved for the State are to be monitored at the highest level to facilitate their speedy implementation.

There is the New Industrial policy 2006-2011 of the State which aims to promote sustained and growth oriented industrialization, with employment, for overall socio-economic development of the State. The other objectives of the policy are to:-

promote diversified industrial base with strength in both old economy and new economy fields.

facilitate reduction of regional imbalance in the matter of economic opportunities, employment and growth.

promote sustained industrial growth by facilitating accelerated flow of investments, etc.

5. Earlier Industrial Policy of Madhya Pradesh aimed at accelerating and strengthening industrial development in the State by attracting more capital investment. The objectives of the policy were to:-

place Madhya Pradesh among the ranks of the industrially developed States.

ensure balanced regional development by giving additional facilities in "No Industry" Development Blocks.

accelerate the pace of industrial development in the State through greater utilisation of the State's human and natural resources.

create more direct and indirect employment opportunities.

create special opportunities for the accelerated development of rural industries.

create new opportunities for the development of the small scale sector.

create opportunities to attract new investments in the large and medium sector.

facilitate synergistic linkages between small scale units and large and medium enterprises.

encourage hi-technology based industries.

encourage investment by Non-Resident Indians.

encourage private sector participation in infrastructure development, etc.

While, the new policy called the Industrial Promotion Policy 2004 envisages on creating an industry-friendly administration, maximizing employment opportunities, tackling industrial sickness, as well as bolstering private sector participation. The main thrust of the policy is:-

establishment of a Madhya Pradesh Trade and Investment Facilitation Corporation.

enacting an Industrial Facilitation Act and to change rules of business with a view to make single window system decisive and result oriented.

developing infrastructure for enhancing identified industrial clusters.

reviving closed down/sick industrial units by granting special packages.

6. In the State of Gujarat, there is an Industrial Policy which has been formulated to promote sustainable industrial development in the State. The policy aims to achieve global competitiveness for industries in Gujarat and make it one of the most competitive destination for investment. The objectives of the policy are to:-

create a conducive environment for the investors.

equip new entrepreneurs as well as existing enterprises with the latest information in relevant fields.

develop the best of infrastructure facilities by infusing private sector investment.

empower the industrial estates to undertake developmental responsibilities.

enhance the quality of life in the State.

strengthen the mature manufacturing segments in the State.

promote industries which are labour-intensive in nature so as to create large-scale employment opportunities in the State.

provide assistance to small-scale industries for healthy growth.

strengthen existing industrial clusters and promote new clusters.

assist small and medium industries in getting bank finance.

equip the industries in Gujarat to meet with the challenges of WTO regime.

establish Gujarat as second to none in terms of "quality" and "brand image"; of products, on international platform;etc.

The State realizes the importance of attracting investments from non-resident Indians (NRIs) as well as multinational companies. This would help the State in improving the technological standards in the industry through technology transfer, enhancing exports, introduction of latest manufacturing practices, development of infrastructure and generation of employment opportunities. At the same time, the Government of Gujarat also appreciates the problems and concerns of the NRIs when they invest in the State. For providing them additional comfort, it is also exploring various options that would meet the aspirations of the NRIs and the needs of the State. In order to bridge the gap between the self-actualisation needs of NRIs and the development requirements of the State, it is considering to set up an Non-Resident Investment Trust Bank after obtaining necessary approvals from Government of India and Reserve Bank of India.

7. Industrial Policies of other States incorporating several features for investment in the States:-

Industrial Policy of Odisha

Industrial Policy of Maharashtra

Industrial Policy of Punjab

Industrial Policy of Goa, etc.

Legislative Framework

The Government of various States and UTs are enacting several legislations for promotion of investment opportunities in their industrial set up. The most important law being, the enactment of Industries Facilitation Act in respective States/ UTs which aims to promote industrial development and facilitate new investments by simplifying the regulatory framework and by reducing the procedural requirements. This Act mainly aims to provide for the measures for speedy implementation of industrial projects and to ensure smooth functioning of the existing industries in the State by providing single point clearances to the entrepreneurs. It seeks to create a conducive environment for business in the economy so as to attract investors the world over, including investments by overseas Indians. Some of these Acts are:-

Odisha Industries (Facilitation) Act, 2004

Karnataka Industries (Facilitation) Act, 2002

Punjab Industrial Facilitation Act, 2005, etc.

http://business.gov.in/overseas/organisational_set_up_state.php

NRI Law Group India

Friday, October 18, 2013

Business opportunities in India for Overseas Indians

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