The Department of Industrial Policy and Promotion (DIPP) has circulated a draft Cabinet note on relaxing foreign direct investment (FDI) norms for the housing sector, which proposed easing the three-year lock-in period among other things. The draft note has proposed easing the three-year lock-in period for FDI in housing and townships, besides it has sought reduction in the minimum capitalisation to $5 million from the present $10 million for wholly-owned subsidiaries, a senior official in the ministry said. The proposal to ease the FDI guidelines for the sector was mooted by the Ministry of Housing and Urban Poverty Alleviation. The note has also suggested a cut in the minimum built-up area of 50,000 sq mts in case of construction development projects to 20,000 sq mts of carpet area for FDI. The official said there is also a need to define the word ‘completion’ in the current policy on the matter of reducing three year lock-in period.

http://www.indianexpress.com/news/dipp-circulates-cabinet-note-on-relaxing-fdi-in-housing-sector/1172145/

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