New Delhi, (IANS) : In an attempt to encourage foreign investments in India, the central government on Wednesday approved a scheme to grant permanent residency status (PRS) to foreign investors for 10 years subject to conditions specified in the foreign direct investment (FDI) policy.

The Union Cabinet approved the scheme at a meeting chaired by Prime Minister Narendra Modi here.

According to a government statement, suitable provisions will be incorporated in the visa manual to provide for the grant of PRS to foreign investors.

The PRS will be granted for a period of 10 years with multiple entry. This can be renewed for 10 more years if the PRS holder has not come to adverse notice.

The scheme will be applicable only to foreign investors fulfilling the prescribed eligibility conditions, his/her spouse and dependents.

In order to avail this scheme, the foreign investor will have to invest a minimum of Rs 10 crore to be brought within 18 months or Rs 25 crore to be brought within 36 months.

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

The PRS will serve as a multiple entry visa without any stay stipulation and PRS holders will be exempted from the registration requirements.

The PRS holders will be allowed to purchase one residential property for dwelling purpose.

The spouse/dependents of the PRS holder will be allowed to take up employment in private sector (in relaxation to salary stipulations for Employment Visa) and undertake studies in India.