IT-BPO industry body Nasscom today criticised the US's Border Security Bill, which will be funded by increasing the fees for H-1B and L-1 visas, saying the move will "unfairly reduce competitiveness of Indian firms", as they will have to pay an additional USD 250 million per year.

"While we understand the need for the US to protect its South-West borders, it seems that the funding proposed by this bill would be from the Indian IT sector," Nasscom said in a statement.

The US Senate has passed a USD 600 million Border Security Bill to increase security along the US-Mexico border.

The enhanced security will be funded by increasing fees for H-1B and L-1 visa applications.

"This will have a negative impact on Indian firms investing in the US by employing local talent and we estimate the impact on Indian firms could be as high as USD 200-250 million per year," it added.

"Indian companies only take a fraction (under 12 per cent) of the total H-1B visas and US companies, who also use these visas in large numbers, will remain unaffected by this bill, thus unfairly reducing the competitiveness of Indian firms," Nasscom said.

The representative body said it estimates the impact on Indian firms could be as high as USD 200-250 million per year.

The body said it is working with various agencies of the Indian government to take up the matter with the US administration.

"We hope that the US would take the necessary steps to enable a positive environment for international trade," it added.