Date:31/12/2004 URL: http://www.thehindubusinessline.com/2004/12/31/stories/2004123100010900.htm

Back Plea to extend FDI norms' coverage in real estate sectors

Our Bureau

New Delhi , Dec. 30

IN order to modify the guidelines on foreign direct investment (FDI) in development of integrated township including housing and building material, the Minister for Urban Employment and Poverty Alleviation, Ms Kumari Selja, has held a meeting with various stakeholders, including HUDCO, and representative of industry, housing and real estate industries.

During the interaction, the representative of housing and real estate industry mooted that FDI norms should cover investments in any or all sectors in real estate viz. housing, commercial premises, hotels, resorts, multiplexes, shopping malls, IT parks, industrial parks, cyber parks and urban infrastructure such as roads, bridges, water, power, drainage and sewage disposal.

With maximum housing shortage in the low-income group, they also suggested that all FDI projects address this category by reserving at least 20-25 per cent of the dwelling units for these categories.

The stakeholders were also of the view that minimum area norm of 100 acres was restrictive as vacant land of this magnitude are not available in cities and urban agglomeration where foreign investors are interested, and further recommended that this be reduced to 20 acres.