The Cabinet, headed by Prime Minister Narendra Modi, approved a proposal to allow foreigners get 10 year residency permits if they invest Rs 10 crore over 18 months or Rs 25 crore over three years. The residency status can be extended by another 10 years.

Investors would also be allowed to buy one residential property and their spouses and children can work or study in Delhi. However, this scheme would not be available for Pakistani or Chinese citizens.

"A certain threshold if you invest in India, then the availability of visa, the availability of the right to purchase assets, the availability of employment for family members, there is a detailed policy that has been approved by the Cabinet today," Finance Minister Arun Jaitley said after the meeting.

The scheme is expected to encourage foreign investment in India and facilitate Make in India Programme. Under the Scheme, suitable provisions will be incorporated in the Visa Manual to provide for the grant of PRS to foreign investors.

An official statement said permanent residency status will be granted for 10 years with multiple entry. This can be reviewed for another 10 years if the holder has not come to adverse notice.

The scheme will be applicable only to foreign investors fulfilling the prescribed eligibility conditions and 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 statement said. PRS will serve as a multiple entry visa without any stay stipulation and PRS holders will be exempted from the registration requirements, it added.

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.