http://www.dnaindia.com/world/report_in ... us_1277195


Sunday, July 26, 2009 12:39:00 PM

Indian govt, firms spend over $10-mn for lobbying in the US

With the US lawmakers holding key to a vast number of issues affecting India and its corporates, the Indian government and a handful of private entities have together spent over 10 million dollars this year alone on lobbying activities in the power corridors here.

In efforts to push forward their case in the US Congress and the administration on issues such as nuclear deal in case of the government and those related to foreign trade, immigration and other regulatory matters as also individual business ventures in case of private Indian entities, nearly 5.6 million dollars were paid to the lobbyists in the second quarter of 2009, according to the set of lobbying disclosure reports filed with the US Senate for this period.

Prior to this, India had already paid nearly 4.6 million dollars in the first quarter ended March 31, 2009, taking the total for the year to over 10 million dollars (Rs 50 crore).

Interestingly, the Indian government and the country's largest private sector firm Reliance Industries, which is run by billionaire industrialist Mukesh Ambani, together accounted for nearly three-fourth of the total lobbying spending by India and Indian companies among the US lawmakers.

Other entities having indulged in lobbying activities, as per the available disclosure reports for the latest quarter, include Tata Sons Ltd, software industry body Nasscom, Gujarat Flurochemicals, Sun Pharma and Orchid Chemical.

According to the disclosure reports filed by high-profile lobbyist firm BGR, which has both RIL and the Indian government as its clients, it was paid a total of 1,90,000 dollars in April-June 2009 towards lobbying activities done for the Indian petrochemicals major.

This amount was bigger than even the 1,80,000-dollar payment that BGR received for lobbying done for Republic of India during the same period. However, the individual lobbying expenses for both RIL and the government, as also the issues on which they are lobbying, have remained unchanged from the previous quarter.

RIL, which has previously been warned of possible penalties by the Barack Obama administration for its business ties with Iran, is lobbying on 'trade (domestic/foreign)' issues, and its Lobbyist has named the US House of Representatives and the US Senate among the houses and agencies for these lobbying activities.

BGR lobbyists have previously served in the White House and Congress and also in other senior positions at various other agencies and the firm is known to have been effective at stopping or changing many policies considered to be harmful for its clients. Its client list comprises of many Fortune 500 companies, foreign governments and trade associations.

At the same BGR is lobbying on 'foreign relations' issues for the government and the specific issues include "bilateral US-India relationship and issues related to civil nuclear agreement".

For the Indian government, BGR has been lobbying with the US House of Representatives, Senate, Departments of Commerce, Defence, Labour and State, Executive Office of president, National Security Council (NSC) and US Trade Representative.

The Indian government has been lobbying among the American lawmakers since 2005 on issues related to nuclear deal and bilateral Indo-US relationships and its total spending has reached 2.59 million dollars (about Rs 13 crore). This includes 3,60,000 dollars paid to BGR in the two quarters of 2009 and 2.23 million paid to the same lobbyist between 2005 and 2008.

The government's lobbying bill in 2008 stood at USD 630,000 for 2007 it was USD 640,000, while the maximum of USD 720,000 for a year was in 2006. A payment of USD 240,000 was made in 2005. Indian prime minister Manmohan Singh and the then US president George Bush had first announced their intention to enter into a nuclear agreement in July 2005.

The first instance of lobbying-related payment was made by the Indian government in the last quarter of 2005. BGR "provided guidance and counsel with regard to issues impacting bilateral relations between the US and the Republic of India, including a potential civil nuclear agreement."