Construction Development Sector-100 percent FDI under automatic route

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for amending the existing Foreign Direct Investment (FDI) policy on the 'Construction Development Sector' in line with the Budget announcement of the Government.

        

The amendments in the relevant paragraphs of the extant FDI policy as contained in the Consolidated FDI Policy Circular 2014 are as follows:

         I.            100 percent FDI under automatic route will be permitted in the construction development sector.

      II.            Investment will be subject to the following conditions:

(A) Minimum area to be developed under each project would be:

                            i.            In case of development of serviced plots, there is no condition of minimum land,

                          ii.            In case of construction-development projects, a minimum floor area of 20,000 sq. meters.

                        iii.            In case of a combination project, any one of the aforestated two conditions will need to be complied with.READ MORE