India Inc paying millions on lobbying in US

On issues ranging from immigrant visas to bilateral trade and individual business ventures, Indian companies, including top corporate entity RIL and industry body Nasscom, are paying thousands of dollars on lobbying with lawmakers and government departments in the US.

As per the disclosure reports filed by lobbyists firms here with the Senate and the House of Representatives, just four Indian entities -- Reliance Industries, Nasscom, Sun Pharma and Orchid Chemicals -- have together paid close to USD 2,75,000 (about Rs 1.4 crore) towards lobbying their causes during the first three months of 2009.

Out of this, RIL has paid USD 1,90,000 to BGR Holding, a high-profile lobbyist group that has many Fortune 500 firms and foreign governments as its clients, for providing "strategic counsel on issues related to trade." Incidentally, the US Congress and House of Representatives are currently considering new legislations to penalise, including a ban from doing business in the US, the companies that supply petroleum products to Iran, which includes RIL.

Besides, Nasscom (National Association of Software Companies) has paid USD 70,000 to the same lobbyist, BGR, in the first quarter of 2009 for lobbying on international technology and immigration issues.

Indian software industry has reacted sharply to the recent moves by the US administration to put curbs on H1-B visas, a skilled foreign worker visa that have largely been given to Indian IT professionals in the past. While the payment made by Sun Pharma in Q1 2009 is below USD 5,000, Orchid Chemicals has paid USD 10,000 for lobbying on issues related to the US drug regulator FDA's policies. Sun Pharma's lobbying issues have been related to the citizens' petitions and FDA reforms.

While there are no past disclosures about RIL's lobbying attempts, Nasscom, Sun Pharma and Orchid have been quite active on this front in the past. Besides, there are also disclosures about lobbying by companies like Larsen & Toubro and industry body CII in the past.

As per the disclosures, Nasscom made a total payment of USD 340,000 towards lobbying on issues like technology and immigration during 2008, while the figures for the previous years are USD 280,000 each in 2007 and 2006, USD 100,000 in 2005, USD 180,000 in 2004 and USD 200,000 in the year 2003.

Orchid Chemicals has also been paying USD 10,000 every quarter since second quarter of 2008, while Sun Pharma has paid about USD 75,000 since 2008.

In another major lobbying effort, Forum of PET Manufacturers had paid USD 50,000 during the last quarter of 2008.

Besides, engineering and construction major L&T paid over USD 10,000 during 2008, while it had paid USD 440,000 in 2007, more than USD 420,000 in 2006 and USD 360,000 in 2005 also. CII had paid USD 520,000 during 2005, while another Indian entity EK Garmkets paid USD 400,000 for lobbying on textile sales during the same year.

Another entity by the name of Seepz Gems & Jewellery paid USD 200,000 in 2007 and USD 180,000 in 2006.

Some other Indian entities that have previously engaged in lobbying in the US include TCS, Tata Sons, Patni Computer, United Phosphorus and Steel Authority of India Ltd (SAIL).

Government of India has also paid USD 2.41 million (over Rs 12 crore) for lobbying with the US lawmakers since 2005 on issues mostly related to the civil nuclear deal between the two countries, which includes a payment of USD 180,000 (over Rs 90 lakh) in first quarter of 2009.

The lobbying issues were related to the "bilateral US-India relationship and issues related to the civil nuclear agreement," the disclosure said.

Barbour Griffith & Rogers (BGR) is the lobbyist for the Indian government, as well as a host of Indian companies also, including RIL. BGR lobbyists have previously served in the White House and Congress and also in other senior positions in various other agencies and the firm claims expertise in seeking new legislation or stopping or changing adverse policies.

Its client list comprise of many Fortune 500 companies, foreign governments and trade associations.

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