Office Space and Residential Townships
-100% FDI allowed in construction / development of office buildings* and residential development*
-Investment to be
Industrial Parks (Including IT parks) and SEZs
-100% FDI allowed
-IT parks guideline applies to IT parks
-SEZ act applies to SEZ’s
Hotels / service apartments / conventions centers
-100% FDI allowed in any development and / or acquisition of existing hotel / service apartment
Shopping centers / malls
-100% FDI allowed in any development*
-Investments to be
*subject to press note 2.
Press Note 2
-Minimum land area of 10 hectares required for serviced housing plots and a minimum built-up area of 5 hectares is required for construction development projects
-Minimum capitalization of $10 mn for wholly owned subsidiaries and $5 mn for joint ventures with
-A major part of the cumbersome procedures of the government and RBI are simplified with the FDI policy
-A minimum lock-in period of 3ys from completion of minimum capitalization is required before repatriation of original investment
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With growing opportunities, major asset management firms from abroad are investing in the local Indian market. India is poised as the most favorite FDI destination in South East Asia, outpacing China. The real estate market in India is flooded with overseas funds. FDI in India is expected to increase to US$15 billion this year, triple the 2004 figure.With the amendment of the Indian government in March 2005, FDI was relaxed up to 100 per cent in the construction business. This amendment has cleared the path for foreign investment to meet the demand into development of the commercial and residential real estate in India. It has also encouraged several large financial firms and private equity funds to launch exclusive funds targeting the real estate sector. This is definitely a step towards making the sector more organized. It will contribute to increased professionalism followed by creation of a healthy and competitive market environment for both domestic and foreign players with the hope of bringing in superior technology and liberalization in India. Rationalization and liberalization measures in the FDI policy has resulted in a surge in the inflows into such sectors creating opportunities for foreign investors and NRIs to invest in India.Now, FDI in townships, built-up infrastructure and construction-development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure facilities, such as roads and bridges, transit systems etc), have been allowed under the automatic route.To provide an amiable investment atmosphere to foreign direct investors, it is necessary that there is access to a consolidated document that clearly specifies all the clearances required with details on all the concerned agencies and the procedures, so that they are clear on the legal requisites before they make a commitment on the funds.For more view- http://realtydigest.blogspot.com/
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