Government Eases FDI Rules For Foreign Investor In Construction Sector

In a recent amendment (December 3, 2014) to the Foreign Direct Investment (“FDI”) Policy, 2014 issued by the Ministry of Commerce of Industry, 100 percent investment will be allowed through the automatic route to boost construction of townships, residential and commercial premises, roads, bridges, hotels, resorts, hospitals, educational institutions, recreational facilities, cities and regional level infrastructure. The Press Note issued made following amendments to the current policy:

1. Reduction of minimum floor area requirement to:
   1. 20,000 sq. metres as against 50,000 sq. meter for construction-development projects,
   2. NIL in case of serviced plots as against 10 hectares.