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January 2010

Non-residents can work on Indian projects only on employment visa; Business visa norms to be tightened.

By Raman Jokhakar, Tarunkumar Singhal, Chartered Accountants
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  1. Non-residents can work on Indian projects only on
    employment visa; Business visa norms to be tightened.

In the present liberalised economic environment, Indian
companies are awarding work for execution of projects/contracts to foreign
companies, including Chinese. This has resulted in inflow of foreign
nationals, including Chinese, for execution of projects/contracts in several
sectors e.g., steel, power, etc. It has come to the notice of the
Government that a large number of foreign nationals, including Chinese were
coming for execution of projects/contracts in India on Business Visas instead
of the Employment Visas.

The matter has, therefore, been reviewed by the Government
and it has been decided that henceforth Business Visa will be issued only to
bona fide foreign businessmen who want to visit India to establish an
industrial/business venture or to explore possibilities to set up
industrial/business venture in India or who want to purchase/sell industrial
or commercial products or consumer durables, etc. according to provisions of
Visa manual.

It has also been decided that all foreign nationals coming
for execution of projects/contracts in India will have to come only on
Employment Visa and that such Visa will be granted only to skilled and
qualified professional appointed at senior level, skilled position such as
technical expert, senior executive or in a managerial position, etc. and will
not be granted for jobs for which a large number of qualified Indians are
available. Suitable instructions/guidelines have been issued to the Indian
Missions abroad to effectively regulate Employment and Business Visa regimes
and ensure that these are issued strictly as per prescribed norms.

As per the guidelines issued by the Government, Employment
Visa for foreign personnel coming to India for execution of projects/contracts
may be granted by Indian Missions to highly skilled and professionals to the
extent of 1% of the total persons employed on the project, subject to a
maximum of 20. However, this has been raised to 1% or maximum of 40 for power
and steel sector projects till June 2010. In case more foreign nationals are
required for any project then clearance of Ministry of Labour & Employment is
required.

(This information was given by the Minister of State for
Labour and Employment Shri Harish Rawat in a written reply in the Rajya Sabha.)

(Source : Internet & Media Reports, dated 16-12-2009)

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