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FDI in Real Estate - Liberal Norms Proposed |
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8/29/2008 1:14:15 AM
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Description
To give a boost to Foreign Direct Investment (FDI) in real estate, the government may consider the proposal of the department of industrial policy and promotion (DIPP) which has circulated a cabinet note proposing to liberalize the existing norms.
The proposal framed by the department of industrial policy and promotion (DIPP) has mainly the following features:
Proposi waiver of the three-year lock-in period on foreign investment. Waiver of minimum investment criteria of $5 million for joint ventures or $10 million for wholly-owned ventures.
According to sources, at present, 100% FDI is permitted in hotels and tourism as well as real estate. However realty FDI faces a three-year lock-in-the investor cannot sell his stake during this period. If one wishes to exit before three years, one will have to take the permission of the Foreign Investment Promotion Board (FIPB).
It is understood that the waiver has been sought for real estate projects, including hotels. The proposal has been justified on the ground that it would boost tourism and hospitality, sectors identified by the government as vital job creators. |
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