The Hindu Business Line : GoM to study Foreign Contribution Act

THE Union Cabinet on Thursday decided to constitute a Group of Ministers to study the Foreign Contribution (Regulation) Act of 1976 and make appropriate recommendations in the light of the latest developments on this front.

"The Ministry of Home Affairs has proposed that the FCRA of 1976 should be repealed and replaced with a new legislation in view of various developments that have taken place. The Cabinet has decided that this issue should be scrutinised by a new GoM," the Defence Minister, Mr Pranab Mukherjee, told newspersons here after a meeting of the Union Cabinet.

The Minister highlighted that the erstwhile National Democratic Alliance (NDA) government had also set up a GoM to study the issue, but had failed to introduce a Bill.

Lawmakers have been concerned over the nefarious activities that are undertaken by certain unscrupulous elements in the garb of overt welfare schemes/projects.

At present, there are more than 30,000 associations registered under the FCRA and more than Rs 5,000 crore of foreign contribution is received annually by the voluntary sector. This money is utilised in various programmes and activities such as health and sanitation, education, social welfare, environment conservation and rural development.

The Home Ministry is keen to ensure that associations engaged in anti-national/illegal activities are not allowed to function/flourish. It also wants to ensure that no hindrance is caused to genuine non-governmental organisations carrying out developmental and welfare work.

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