(a) whether the Government has approved hundred per cent foreign investment in construction sector;
(b) if so, whether it will adversely affect the Indian construction units and builders;
(c) whether the houses will be costlier for common man as a result of foreign investment in construction sector;
(d) if so, whether any condition is imposed on foreign investors of construction companies to common man for providing houses at cheap rates; and
(e) if so, the details thereof?
MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF URBAN EMPLOYMENT & POVERTY ALLEVIATION ( KUMARI SELJA )
(a)to(e): The government has allowed FDI up to 100% under the
automatic route in township, housing, built-up infrastructure
and construction-development projects (which would include, but
not be restricted to, housing, commercial premises, hotels,
resorts, hospitals, educational institution, recreational
facilities, city and regional level infrastructure) inter-alia
providing that
(i) Minimum area to be developed is 10 hectares for housing
plots;
(ii) Minimum built-up area of 50,000 sqmtrs. for
construction-development projects;
(iii) Minimum capitalisation of US $10 million for wholly owned
and US $5 million for joint ventures with Indian partners;
(iv) Minimum lock-in-period of investment 3 years;
(v) At least 50% of the project must be developed within 5
years after obtaining all statutory clearances.
This is likely to increase investment in
Housing/Construction sector which would result in increase in
Housing stock in the country.