Work and study permits’ for dependents of investors.

With a view to encouraging foreign investment in India, the Union Cabinet under the Chairmanship of Prime Minister Narendra Modi has approved the scheme for grant of Permanent Residency Status (PRS).

The PRS will be granted for a period of 10 years with multiple entries. In order to avail this scheme, a foreign investor will have to invest a minimum of Rs. 10 crores (approximately $1.5 million) to be brought within 18 months or Rs. 25 crores to be brought within 36 months, reported the Press Trust of India.

Further, the foreign investment should result in generating employment to at least 20 resident Indians every financial year.

This residency status can be extended for another 10 years if the PRS holder has not received an adverse notice. The scheme will be applicable only to foreign investors fulfilling the prescribed eligibility conditions. The scheme is subject to the relevant conditions as specified in the FDI Policy notified by the government from time to time.

PRS will serve as a multiple entry visa without any stay stipulation and PRS holders will be exempted from the registration requirements. They will be allowed to purchase one residential property for dwelling purpose. The spouse and dependents of the PRS holder will be allowed to take up employment in the private sector (in relaxation to salary stipulations for employment visa) and undertake studies in India.

The scheme is expected to encourage foreign investment in India and facilitate Make in India program. However, the scheme will not be available for Pakistani or Chinese citizens.

“A certain threshold if you invest in India, then the availability of visa, the availability of the right to purchase assets, the availability of employment for family members, there is a detailed policy that has been approved by the Cabinet today,” Finance Minister Arun Jaitley said.