Govt eases FDI rules in construction sector
31 Oct 2014 4:59 AM IST
The government on Wednesday relaxed rules for allowing FDI in the construction sector including housing by reducing the minimum built-up area and capital requirement for foreign investment in such projects . The approval has been given by the Cabinet in its meeting held on Wednesday, sources said.
The Cabinet decided to reduce the minimum built-up area requirement for FDI in construction projects from 50,000 sq metres to 20,000 sq metres. The minimum capital requirement has been brought down to $5 million from $10 million, they added.
The proposal was moved by the Department of Industrial Policy & Promotion (DIPP), under the Commerce and Industry Ministry, to attract more foreign investment in construction and real estate sector that is facing a slowdown and liquidity crunch since last two-three years.
Although 100 per cent FDI is allowed in townships, housing and built-up infrastructure and construction developments since 2005, the government has imposed certain conditions.
The Cabinet decided to reduce the minimum built-up area requirement for FDI in construction projects from 50,000 sq metres to 20,000 sq metres. The minimum capital requirement has been brought down to $5 million from $10 million, they added.
The proposal was moved by the Department of Industrial Policy & Promotion (DIPP), under the Commerce and Industry Ministry, to attract more foreign investment in construction and real estate sector that is facing a slowdown and liquidity crunch since last two-three years.
Although 100 per cent FDI is allowed in townships, housing and built-up infrastructure and construction developments since 2005, the government has imposed certain conditions.
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