FDI norms in construction relaxed

FDI norms in construction relaxed

The Union Government has announced relaxation in FDI policy for construction sector by easing exit norms and reducing built-up area and capital needs. This will help attract foreign funds in construction of townships, hospitals, hotels and other urban infrastructure projects. The revised norms relating to construction development sector has been notified by the Department of Industrial Policy and Promotion (DIPP). India allows 100 per cent FDI in the sector through automatic route.

The new policy has done away with the three-year lock-in period for repatriation of investment. In the case of development of serviced plots, the condition of minimum land of 10 hectare has been completely removed. Government expects the new measures would result in enhanced inflows into the construction development sector.

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