GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Government to take call on FDI relaxation for construction on Wednesday

The move was aimed at attracting more foreign investment in construction and real estate sector.

http://SubhajitSG

Updated:October 28, 2014, 7:41 PM IST
facebookTwittergoogleskypewhatsapp
Government to take call on FDI relaxation for construction on Wednesday
The move was aimed at attracting more foreign investment in construction and real estate sector.

New Delhi: The Cabinet may on Wednesday decide on relaxing foreign direct investment (FDI) norms in construction sector. The Department of Industrial Policy & Promotion (DIPP), under the Commerce and Industry Ministry, has proposed to bring down the minimum built-up area requirement for FDI in construction projects from 50,000 sq metres to 20,000 sq metres.

It has also proposed reducing the minimum capital requirement for such projects from $10 million to $5 million. The move was aimed at attracting more foreign investment in construction and real estate sector.

The proposal is likely to come up at the Cabinet meeting on Wednesday, sources said. Between April 2000 and August 2014, construction development, including townships, housing and built-up infrastructure in the country received FDI worth $23.75 billion or 10 per cent of the total FDI attracted by India during the period.

Press Note 2 (2005) of the DIPP allows FDI up to 100 per cent in townships with conditions. The DIPP, which deals with FDI related matter, issues provisions in the form of Press Notes or consolidated circulars.

Although 100 per cent foreign direct investment is allowed in townships, housing and built-up infrastructure and construction developments, the government has imposed conditions. To further encourage this, Finance Minister Arun Jaitley in his maiden Budget had also said that projects which commit at least 30 per cent of the total project cost for low cost affordable housing would be exempted from minimum built up area and capitalisation requirements, with the condition of three year lock-in.

Also Watch

Read full article
Most Active
Company Price Change %Gain
Reliance 920.80 +4.95 +0.54
Vedanta 251.80 +1.20 +0.48
TCS 3,585.80 -17.90 -0.50
United Spirits 3,250.30 +131.15 +4.20
SBI 266.95 -1.55 -0.58
Company Price Change %Gain
HDFC 1,820.00 +13.95 +0.77
Just Dial 507.40 +42.55 +9.15
Avenue Supermar 1,497.45 +93.25 +6.64
PC Jeweller 192.45 +4.40 +2.34
United Spirits 3,251.00 +128.95 +4.13
Top Gainers
Company Price Change %Gain
Indiabulls Hsg 1,172.10 +60.30 +5.42
Hindalco 245.50 +11.40 +4.87
IOC 163.45 +7.55 +4.84
ONGC 175.45 +7.75 +4.62
HPCL 295.20 +11.95 +4.22
Company Price Change %Gain
ONGC 175.35 +7.70 +4.59
Tata Steel 567.20 +18.80 +3.43
Yes Bank 339.45 +8.95 +2.71
Adani Ports 379.90 +8.70 +2.34
IndusInd Bank 1,914.75 +43.55 +2.33
Top Losers
Company Price Change %Gain
Coal India 275.60 -4.50 -1.61
Tech Mahindra 702.75 -8.60 -1.21
Bharti Infratel 314.85 -3.50 -1.10
ITC 272.30 -2.55 -0.93
ICICI Bank 295.65 -2.05 -0.69
Company Price Change %Gain
Coal India 276.05 -3.80 -1.36
ITC 271.95 -2.85 -1.04
SBI 267.00 -1.50 -0.56
TCS 3,589.45 -15.35 -0.43
ICICI Bank 296.50 -0.75 -0.25