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TMI BlogReview of Foreign Direct Investment (FDI) policy on the Construction Development Sector-amendment to ‘Consolidated FDI Policy Circular 2014’X X X X Extracts X X X X X X X X Extracts X X X X ..... s as below: Sl. No. Sector/Activity % of Equity/ FDI Cap Entry Route 6.2.11 Construction Development: Townships, Housing, Built-up infrastructure 6.2.11.1 Townships, housing, built-up infrastructure and construction-development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure) 100% Automatic 6.2.11.2 Investment will be subject to the following conditions: (1) Mini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regulations, have not been made available. It will be necessary that the investor provides this infrastructure and obtains the completion certificate from the concerned local body/service agency before he would be allowed to dispose of serviced housing plots. (5) The project shall conform to the norms and standards, including land use requirements and provision of community amenities and common facilities, as laid down in the applicable building control regulations, bye-laws, rules, and other regulations of the State Government/Municipal/Local Body concerned. (6)The investor/investee company shall be responsible for obtaining all necessary approvals, including those of the building/layout plans, developing internal and peripher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Automatic 6.2.11.2 Investment will be subject to the following conditions: (A) Minimum area to be developed under each project would be as under: i. In case of development of serviced plots, no minimum land area requirement. ii. In case of construction-development projects, a minimum floor area of 20,000 sq. meter. (B) Investee company will be required to bring minimum FDI of US$ 5 million within six months of commencement of the project. The commencement of the project will be the date of approval of the building plan/lay out plan by the relevant statutory authority. Subsequent tranches of FDI can be brought till the period of tenyears from the commencement of the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irements as prescribed under applicable rules/bye-laws/regulations of the State Government/ Municipal/Local Body concerned. (G) The State Government/ Municipal/ Local Body concerned, which approves the building / development plans, will monitor compliance of the above conditions by the developer. Note: (i) It is clarified that FDI is not permitted in an entity which is engaged or proposes to engage in real estate business, construction of farm houses and trading in transferable development rights (TDRs). Real estate business will have the same meaning as provided in FEMA Notification No. 1/2000-RB dated May 03, 2000 read with RBI Master Circular i.e. dealing in land and immovable property with a view to earning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... area of not more than 60 square meter. (viii) It is clarified that 100% FDI under automatic route is permitted in completed projects for operation and management of townships, malls/ shopping complexes and business centres . 3.0 The above decision will take immediate effect. (Atul Chaturvedi) Joint Secretary to the Government of India D/o IPP File No. : No. 5/14/2013-FC-I dated 03 December, 2014 Copy forwarded to: Press Information Officer, Press Information Bureau- for giving necessary publicity to the above press note. Reserve Bank of India, Foreign Exchange Department, Mumbai for suitably incorporating the policy changes in foreign Exchange management (Transfer or i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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