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Highlights of the Policy

100 per cent FDI in construction sector under automatic route in development of townships, housing, built-up infrastructure, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities and city and regional level infrastructure.

Minimum area to be developed will be 25 acres for serviced housing plots and minimum built up area will be 50,000 sqmts for development projects.

Minimum Capitalization of $10 million for wholly owned subsidiaries and $5 million in the case of JV’s.

Original investment cannot be repatriated before three years from completion of minimum capitalization. However, earlier exit possible with prior approval from FIPB.

The funds would have to be brought in within six months of commencement of business of the company.

Sale of undeveloped land barred.

State governments and municipal bodies will approve such projects instead of the central government hitherto.

At least 50 per cent of the project should be completed within three years of getting possession of the land.

FDI projects would be accorded national treatment on par with local developers.