New NRI department proposal hits pause as govt weighs overlap with existing agencies

Bengaluru: The govt has put the proposal of creating a dedicated department for non-resident Indians on hold amid concerns that its functions may overlap with existing departments handling investments and entrepreneurship.The proposal, backed by chief minister DK Shivakumar as part of a broader effort to attract overseas investments, was discussed at a recent cabinet meeting, but ministers deferred a decision and sought greater clarity on the department’s role. Senior officials said many of the functions being considered for the proposed NRI department are already being handled by the industries and IT-BT departments.The idea of floating a new department came during a recent meeting of NRI forums representing an estimated 25 lakh people of Karnataka origin living abroad.

Participants proposed a Rs 1,000 crore revolving fund to provide seed capital for startups.Dubai-based businessman Ronald Colaco said the proposal aligns with the govt’s manifesto commitment under LEAP, a programme with an outlay of Rs 1,000 crore aimed at promoting startups and entrepreneurship beyond Bengaluru.But officials argued that such initiatives can be implemented through existing departments, reducing the need for a separate NRI-focused agency.

“With the Centre itself having an overseas Indian division under the ministry of external affairs, even welfare measures are dealt with by the Union govt. This negates the purpose of a new department,” an official said.Despite the reservations, the govt believes Karnataka’s diaspora remains an untapped source of investment that could support the state’s development agenda.NRI representatives also renewed their demand for a single-window clearance mechanism to simplify investment procedures.

“We need a single-window system where all departmental approvals can be obtained within a fixed timeframe,” Colaco said, referring to investments in healthcare, hospitality, power generation and other sectors.Lalitha Gowda, US-based investor, cited her experience with delays in obtaining land for an IT venture. “A plot was finally allotted to us in 2015 after seven years of applications. Now, it is embroiled in a legal dispute related to an alleged land-grabbing case,” she said, adding that she spent nearly two years attempting to resolve the issue.Forum members also sought the creation of an NRI welfare fund to provide emergency assistance, support repatriation of mortal remains and aid distressed workers overseas. Shahul Thangal of Gulf Retirees Association said a majority of Karnataka’s overseas workforce is employed in blue-collar jobs and contributes significantly through remittances.Arun Kumar, president of Kannada Koota, Dubai, urged the state to support cultural activities abroad. “Celebrating Karnataka Rajyotsava overseas helps showcase our culture. We need financial assistance of Rs 50 lakh to Rs 1 crore to organise such events abroad,” he said.