Thursday, November 13, 2014

FDI for Construction eased


  • Minimum Foreign investment cut to $5m from $10 m
  • Conditions set aside for hospital, tourism, SEZ, NRIs and old age homes
  • Minimum Floor area cut to 20000 sq m from 50000 sq m
  • 3 years lock in removed; developer can exit on completion, if earlier
  • Minimum land area condition for serviced housing plots removed
  • The Indian entity investing in the project will only be allowed to sell plots for which trunk infrastructure, including roads, water supply, street lighting, drainage and sewerage, have been developed.
  • Earlier exits may be allowed
  • Investor can transfer stake to another before completion of a project, subject to FIPB clearance.
  • In completed projects, 100 per cent FDI under the automatic route is allowed for operation and management of townships, malls/shopping complexes and business centres.
  • Projects committing at least 30 per cent of the total cost for low-cost affordable housing would be exempted from the minimum built- p area and capitalization requirements, with a three-year lock-in period.

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