August 14, 2010 1:56 PM

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US justifies visa hike move

The Obama Administration came out in strong support of the Border Security Bill saying this would in no way undermine America's robust and vital relationship with India. US Homeland Security Secretary Janet Napolitano told reporters at a White House briefing that and nothing in this Bill should interfere with the strong relationship between the two countries. The Bill has been termed discriminatory by Indian IT companies. Napolitano said it made sense to raise visa fee for certain business to fund for the security of the US-Mexico Bill as by doing so there would be no financial burden on American economy.Earlier, ignoring the concerns of Corporate America and India, the US President Barack Obama has signed the new Border Security Bill proposing a steep hike in some categories of H-1B and L-1 visa fees. It is expected to badly hit the Indian IT industry, which may have to shell out an additional $250 million annually for the next five years due to the hike. The money raised by this increase would be used to strengthen security along the porous US-Mexico border by deploying an additional 1,500 National Guards, unmanned drones and by taking other measures. A summary of a Senate version of the Bill named Indian firms Wipro, Tata, Infosys and Satyam, which use hundreds of these visas for their employees going to the United States to work at their clients' locations as technicians and engineers. Meanwhile, Commerce and Industry Minister Anand Sharma in a communication to the US Trade Representative Ron Kirk has said the visa fee hike was a discriminatory step that would hurt the interest of Indian companies operating in that country.

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