New Delhi: The government Monday said it is working on the proposal to liberalise foreign direct investment (FDI) norms in the construction sector.
Commerce and Industry Minister Nirmala Sitharaman said that the easing of norms are underway for FDI in construction development sector.
Under current rules, 100 percent foreign direct investment is allowed through the automatic route in development of townships, housing and built-up infrastructure, subject to stringent conditions.
According to sources, the Ministry has already floated a draft cabinet note on the matter.
It has proposed to bring down the minimum built-up area requirement for FDI in construction projects from 50,000 sq metres to 20,000 sq metres. It has also proposed reducing the minimum capital requirement for such projects from USD 10 million to USD 5 million.
The government has recently liberalised FDI norms for the defence sector, increasing the FDI cap from 26 percent to 49 percent.
It also permitted 100 percent foreign investments through the automatic route in a number of areas in the railways, including high-speed trains, railway line, passenger terminals and coaches manufacturing and maintenance facilities.
Further on the industrial corridors, DIPP Secretary Amitabh Kant said a new National Industrial Corridor Development Authority is being created to carry out project development activities.
Work on five smart cities - Dholera in Gujarat; Shendra- Bidkin in Maharashtra; Integrated Industrial Township in Greater Noida (UP) and Ujjain (MP); Global City in Gurgaon is moving at a fast pace in Delhi-Mumbai Industrial Corridor (DMIC), he said.
He informed that the perspective plan for Chennai- Bengaluru Industrial Corridor has been completed and the ADB is working on perspective plan for the Vizag-Chennai phase of the proposed East Coast Economic Corridor.
"Steps are being taken to expedite the work relating to the Amritsar-Kolkata Industrial Corridor. The Feasibility Study is likely to be completed in record time," he added.
Besides, he said under the Modified Industrial Infrastructure Up-gradation Scheme, in-principle approval has been accorded to 21 Industrial projects.
Further, he said the Indian Leather Development Programme during the last 100 days has provided training to 51,216 unemployed youths and 83 percent of these trained youths have been employed in the leather industry.
"To provide further impetus to skill development two new Centres of Footwear Design & Development Institutes are being set up," he added.
