Permitted 100 percent
foreign equity in the construction sector
New Delhi, Feb 24, 2005
: In a major policy decision aimed at
attracting overseas capital, India on Thursday permitted
100 percent foreign equity in the construction sector,
covering a range of areas from hotel resorts to integrated
townships.
The decision was taken at a meeting of the Cabinet
Committee on Economic Affairs chaired by Prime Minister
Manmohan Singh here, which also gave its approval
for all applications for such projects to be cleared
under the automatic route.
To forestall speculation in real estate by foreign
investors, the sale of undeveloped land has been prohibited,
Commerce and Industry Minister Kamal Nath said after
the meeting.
"We want incremental investment in the construction
sector so that it triggers employment generation,
greater economic activity, a rapid increase in built-up
infrastructure and spin-off benefits for manufacturing
sector."
Foreign investment in the construction sector will
not displace or replace the local industry, but rather
help it to grow at a rapid pace and generate greater
economic activity, the minister added. (IANS.
Image Source: AFP )
