ACCORDING
TO A RECENT GOVERNMENT REPORT, INDIA HAS AN ESTIMATED HOUSING SHORTAGE OF 18.78
MILLION
With
an eye to address India’s housing shortage and make it affordable, the cabinet
on Wednesday is likely to approve a proposal to liberalise the foreign direct
investment (FDI) in the real estate sector.
Piloted
by the Department of Industrial Policy and Promotion (DIPP), the relaxations
will help bring in more foreign investments in the sector.
Though
currently 100 % FDI is allowed in real estate which includes townships,
housing, commercial premises, hotels, resorts and built up infrastructure but
stringent norms ensured that the investments remained confined mainly to
commercial real estate and upscale housing projects. Now, to bring in more foreign players, the government has
proposed to reduce the minimum capitalisation to $5 million from $10 million.
The entire amount will have to be brought in within six months of the project’s
commencement.
Source: Hindustan Times
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