NEW DELHI: The Indian government has decided it cannot give the PIOs same benefits as NRIs. Responding to the Ministry of Overseas Indian Affairs' Cabinet's proposal to provide same benefits to PIOs in investment, employment and property rights as available to NRIs, the Ministry of Home affairs has said, "Giving unfettered rights to PIOs may lead to certain unsavory situations especially if they become major players in India's strategic sectors".

Two years ago the government had cleared parity in privileges to PIOs with NRIs. Now the Home Ministry wants government control with "the right to review and refuse any such right at any stage", according to a report appearing in the Indian Express.

The Ministry reasons that while an NRI is an Indian citizen staying abroad for business or employment, a PIO is a foreign national of Indian origin. A PIO can denounce his status by merely filing an application, making it difficult to proceed against him if he commits any punishable offence in India.

The Ministry of Health and Family Welfare has also asked for restrictions. "Till PIOs become naturalized citizens of India, they should not be permitted to seek membership of statutory bodies like Medical Council of India, Dental Council of India etc," it says.