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In order to further modify the guidelines on Foreign Direct Investment (FDI) in development of integrated township including housing and building material, Minister for Urban Employment & Poverty Alleviation, Kumari Selja held, here today, a meeting with various stakeholders, including HUDCO, BMTPC and representative of industry, housing and real estate industries such as FICCI, CII, ASSOCHAM, CREDAI and NAREDCO.
The representative of housing and real estate industry made the following suggestions:
FDI norms should cover investments in any or all sectors in real estate viz. housing, commercial premises, hotels, resorts, multiplexes, shopping malls, IT parks, Industrial parks, cyber parks and urban infrastructure such as roads, bridges, MRTS, water, power, drainage and sewage disposal etc.
Maximum housing shortage being in low income group including EWS, it is imperative that all FDI projects address this category by reserving at least 20-25% of the dwelling units for these categories and EWS housing should be subsidized through various fiscal incentives.
The minimum area norm of 100 acres is restrictive as vacant land of this magnitude are not available in cities and urban agglomeration where foreign investors are interested. This should be reduced to 20 acres. There should be no restriction on population to be covered. In other words real estate development should be allowed instead of integrated townships, subject to local bye-laws & States’ policies. Another problem with 100 acres norms is that such big chunks of land is mostly agricultural land, which cannot be used for non-agricultural purposes. Permission for change in land use from agricultural to non-agricultural purposes from the State Government is very difficult and time consuming.
The minimum capitalization norm should be accordingly brought down to US$ 2 million for wholly owned subsidiary and US$ 1 million for joint ventures with Indian partner.
Land for amenities such as schools, shopping complexes, ration shops etc. should not be expected free of cost but on reasonable cost and facilities should be at par with local developers.
Among others present on the occasion were Smt. Chitra Chopra, Secretary, Ministry of Urban Employment and Poverty Alleviation and Shri P.S. Rana, CMD HUDCO.
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