Corporate diplomats

The similarities are hard to miss. They live right opposite each other on Delhi?s Aurangzeb Road, one of the Capital?s coveted addresses.

The similarities are hard to miss. They live right opposite each other on Delhi?s Aurangzeb Road, one of the Capital?s coveted addresses. They represent two of its most prominent business families and their surnames match as well. DLF patriarch KP Singh and Max Healthcare founder Analjit Singh can boast another commonality. Their respective gates sport the emblem of a foreign country? Monaco for KP Singh, while Analjit displays San Marino. This is extreme deja vu. Monaco is a sovereign city state surrounded by France and San Marino is a sovereign micro-state surrounded by Italy. Both have populations less than 40,000. KP and Analjit Singh represent Monaco and San Marino in India as honourary consul generals. So here?s the rub. Why do two of India?s richest businessmen with massive corporate empires to run find it so advantageous to assume what is a relatively minor diplomatic title?

It?s just not these two. The top tier of corporate India seems obsessed with acquiring a diplomatic connection. Rana Kapoor of Yes Bank represents Cyprus in Mumbai, Biocon?s Kiran Mazumdar Shaw is honourary Irish consul general in Bangalore, Dabur?s Vivek Burman represents Nicaragua, industrialist AC Muthiah does the same for Belgium in Chennai, Pasco chairman Sanjay Passi is consul general for Latvia, while fellow Delhi businessman Ashish Saraf represents the Bahamas. Even in Goa, presumably because of the large influx of foreigners, Belgium has appointed Dattaraj Salgaonkar as honourary consul general. These are some of corporate India’s finest who have a foreign hand, so to speak.

In foreign ministries across the globe, they are known as ?no-cost diplomats?. They get no payment for services rendered and, in the case of some of the poorer countries, actually bid at a private auction and shell out considerable fortunes to get honourary diplomatic status. So what exactly is the pay off? Honourary consulates have different duties from consulates. Many cannot issue passports, some issue visas, others do not, but most are appointed for one reason only: to promote tourism or trade with the country they belong to. High-profile industrialists and corporate czars are first past the post when it comes to such appointments. In the case of KP Singh, Prince Albert flew down personally to make the official appointment, which gave him bragging rights for a few days. But beyond that, it hardly seems worth the effort and expense. Most honourary consuls operate from their own residences or offices and bear most of the costs to do with paperwork, consular duties, helping citizens of the country they represent, and hosting a party on that country?s National Day.

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So is it just an ego thing to do with corporate one-up-manship? Not quite. A host of countries need representation in cities that are industrial, financial or technological hubs, as in Chennai, Mumbai and Bangalore, but prefer to save on the expense of setting up diplomatic establishments outside Delhi. There are smaller countries which prefer not to have an embassy in Delhi under their national priorities, so they settle for an Indian national to represent them. The basic idea is to increase trade, tourism and investment opportunities with the host country, which is why industrialists and businessmen with solid political connections are the obvious choice. The payback, for Indian corporates, is actually quite substantial. Their diplomatic credentials means they get invitations to rub shoulders with prime ministers, politicians and presidents at formal receptions, attend confidential briefings in South Block, and in the case of monarchies, get invites to royal weddings. The biggest payback is that the rarefied circles they gain access to as diplomatic reps gives them an opportunity to promote their own business interests and expand opportunities for foreign collaborations, investment and acquisitions. The post also comes with a few fringe benefits: a consular ID, a CD licence plate, diplomatic immunity within certain limits, and visits to the country they represent.

Equally, being honourary consul of a foreign country is a source of considerable social prestige among Delhi?s elite. In today?s globalised world with economic affairs gaining unrivaled priority, honourary consuls with solid corporate credentials have acquired greater clout and importance. There are over 50,000 honourary consuls across the world, a marked increase from a decade ago. Earlier, they were typically involved in issuing travel documents, notarising bank forms or answering questions from potential visitors to the country they represent. They also handled emergencies, such as repatriating remains or visiting citizens in jail. Nowadays, promoting trade, commerce and tourism for the country they represent tops the agenda, which, rather conveniently, offers scope to boost their own business interests. A win-win situation, as the current corporate mantra goes. There?s one other perk that gives honourary consuls an unbeatable edge. Deplaning at a busy airport like Heathrow or Frankfurt, their diplomatic ID allows them to breeze through immigration via the diplomatic channel while their corporate colleagues are still waiting in the queue. That?s an exit strategy that?s tough to beat.

The writer is Group Editor, Special Projects & Features,?The Indian Express?

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First published on: 07-10-2012 at 03:30 IST
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