Saturday, May 29, 2010

Government relaxes visa norms for IT cos

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Indian governmenet relaxes visa norms for IT cos
NEW DELHI: In a major relief to over $60-billion IT industry, the Manmohan Singh government has relaxed employment visa norms for the sector allowing companies to hire foreign nationals as per their requirements. This effectively removes the ceiling of 20 such employees per company.

The ministry of external affairs has circulated new guidelines to all missions abroad informing them of the relaxation in procedures for IT and ITeS companies.

“It (the relaxation in norms) addresses concerns of the country’s IT and ITeS industry related to the employment visas,” said Raju Bhatnagar , vice president (BPO and government relations), Nasscom.

Technology companies that sponsor foreigners to work here will need to give a declaration that the skilled worker has been hired for and IT or ITeS company or to work in a Software Park of India or and special economic zone dedicated to information technology or an IT unit in a multi-product zone.

On the other hand, the foreign worker being sponsored will have to give a declaration to the effect that his annual salary is in excess of $25,000 per annum. The salary cap is being introduced to ensure only highly skilled workforce comes into the country, a government official said.

Last year, the labour ministry had, in consultation with the home ministry, introduced a number of changes in the visa rules after it found that there were thousands of Chinese workers, including low-skilled ones like cooks and masons, employed in power and steel projects being executed by Chinese contractors.

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