The Department of Industrial Policy and Promotion (DIPP) has circulated a draft Cabinet note on relaxing foreign direct investment (FDI) norms for the housing sector,which proposed easing the three-year lock-in period among other things. The draft note has proposed easing the three-year lock-in period for FDI in housing and townships,besides it has sought reduction in the minimum capitalisation to $5 million from the present $10 million for wholly-owned subsidiaries,a senior official in the ministry said. The proposal to ease the FDI guidelines for the sector was mooted by the Ministry of Housing and Urban Poverty Alleviation. The note has also suggested a cut in the minimum built-up area of 50,000 sq mts in case of construction development projects to 20,000 sq mts of carpet area for FDI. The official said there is also a need to define the word completion in the current policy on the matter of reducing three year lock-in period.
Stepping up efforts for generating Rs 1,000 crore revenue from railway land,the Rail Land Development Authority (RLDA) has concretised an action plan to develop 75 multi-functional complex (MFC) sites in the current fiscal. RLDA,a statutory authority established by the Railways Ministry for generating non-tariff revenue from railway land,has initiated the bidding process for the construction of MFC near stations across the country for commercial utilisation. Prominent stations,where MFC are coming up,include Dehradun,Ujjain,Vasai Road,Lokmanya Tilak Terminus,Gulbarga,Vijayawada,Amritsar,Amethi and Chandigarh.