Govt plans fund to mobilise NRI donations

As a reflection of its theme for the Pravasi Bharatiya Diwas (PBD), that is getting overseas Indians in touch with their rural roots, the Ministry for Overseas Indian Affairs will be announcing the setting up of an India Development Fund (IDF) at the three-day meet in January.

A brainchild of Overseas Indian Affairs Minister Vayalar Ravi, the fund will channel contributions from NRIs towards philanthropic activities in India. "Basically, we have found that for the last few years that the Pravasi Bharatiya Diwas is being held, there has been too much noise about investment and very little actual investment. Only around 5 percent of the FDI in India is from NRIs, yet I have met many people, salaried people, not the millionaires, who want to contribute to improving conditions in their home state," says Ravi.

The IDF will be a not-for-profit trust which will provide a single window to lead philanthropy funds to the social sector. "The sectors which we have identified dovetail with the goals of the 11th Plan, and these are mostly in micro finance, women's empowerment, health and education. Reputed NGOs will be engaged, and international accounting standards will be applied to the funds," said Ravi. "That the funds have been put to correct use will be demonstrated to contributors," he added.

In fact, ministry officials said that if NRIs want their funds to go into specific areas, their own states or even villages, that too could be arranged. "In case these people want to physically verify these things, this will also be allowed," said Ravi. While this is just a concept to be thrashed out at the PBD, the ministry says that they are optimistic about the venture. "There are 25 million Indians overseas, even if six million of them contribute some money, it will be a sizeable sum," says Ravi.