Govt may issue NRI infrastructure bonds

NEW DELHI: In a bid to attract investment from the Gulf-based Non Resident Indians (NRIs), the government is considering to issue NRI infrastructure development bonds. “We could consider issuing NRI infrastructure development bonds to the NRIs based in the Gulf nations,” E Ahamed, minister of state of external affairs, said on the first day of the three-day 'Pravasi Bharatiya Divas' which began on Sunday.

However, Mr Ahamed did not give any details such as the duration of the bonds and what percentage of interest will they carry. He said these bonds will boost the development of infrastructure in India while giving NRIs an option to make long-term investment in India. The government will also encourage foreign investment in various projects through the public private partnership route, he added.

Gulf-based NRIs could also hope for a budgetary allocation exclusively for them, which the Indian government may announce in the coming budget. “We have asked the finance ministry to make a budgetary allocation to the Gulf workers whose remittances to India have been maximum,” said Vayalar Ravi, Minister for Overseas Indian Affairs (MOIA).

Delegates from various Gulf countries gave numerous suggestions while highlighting the problems that they have to face abroad. Their prime concerns were the welfare and safety of Indian workers in the Gulf countries, good salaries and working conditions, strict enforcement of employment contracts and effective air link between India and the Gulf.

Pointing out the sorry state of national carrier Air India’s operations to the Gulf, Yusuff Ali - MD Emke Group and board member of Abu Dhabi Chamber of Commerce & Industry - said “delays, disruptions and flight cancellations are the normal feature of Air India.” He and many other delegates urged the Indian government to improve the flight facilities between India and the Gulf countries.

While admitting the that air travel facility is one of the major problems, Mr Ravi said “we will try to find a solution to increase the number of flights and to reduce the fares.” Delegates also urged the minister to take up the matter of starting a regional airline Air Kerala - linking Kerala and the Gulf - with the civil aviation ministry. The civil aviation ministry has been resisting the proposal of starting Air Kerala.