Understanding the sentiments of persons of Indian Origin to be closer to their original country and to reinforce their emotional bonds, as well as respecting their desire to participate in the development of the country of their origin, the Government made an earnest resolve to frame a special scheme. This resolve was translated in the first Budget Speech of FM:-

1.Government have decided to draw up a scheme for issuance of a Persons of Indian Origin (PIO) Card for those living abroad and having foreign passports. The PIO Card,which would be extended to Persons of Indian Origin settled in countries to be specified by Government would besides introducing a visa free regime,also confer some special economic,educational,financial and cultural benefits. The details are being worked out.'

2. The Government has today launched a comprehensive Scheme for the Persons of Indian Origin-called the 'PIO Card Scheme'. Under this Scheme, Persons of Indian Origin upto the fourth generation (great grand parents) settled throughout the world, except for a few specified countries,would be eligible. The Card would be issued to eligible applicants through the concerned Indian Embassies/High Commissions/Consulates and for those staying in India on a long term visa, the concerned Foreigners Regional Registration Officer (Delhi,Mumbai,Calcutta,Chennai) would do the same.

3. The fee for the card,which will have a validity of 20 years, would be US $1000.

4. Besides making their journey back to their roots simpler,easier and smoother,this Scheme entitles the PIOs to a wide range of economic ,financial ,educational and cultural benefits. The benefits envisaged under the Scheme include:-
i) No requirement of visa to visit India:
ii) No requirement to register with the Foreigners Registration Officer if continuous stay does not exceed 180 days. If continuous stay exceeds 180 days,then registration is required to be done within a period of 30 days of the expiry of 180 days;
iii) Parity with Non-Resident Indians in respect of facilities available to the latter in economic, financial, educational fields etc. These facilities will include:

(a)Acquisition, holding, transfer and disposal of immovable properties in India except of agricultural/plantation properties;
(b) Admission of children in educational institutions in India under the general category quota for NRIs- including medical/engineering colleges,IITs,IIMs etc.
(c) Various housing schemes of Life Insurance Corporation of India, State Governments and other Government agencies;