Government clears UAE developer's Rs1,000 crore FDI plan

The cabinet committee on economic affairs (CCEA) has approved UAE-based real estate firm Rakeen Development's proposal to invest up to $250 million (Rs1,000 crore) in the infrastructure sector, including integrated townships and SEZs.

The CCEA today gave its approval for setting up a wholly owned holding company with a foreign equity of up to 100 per cent, amounting to $250 million, by Rakeen Development (Rakeen) PJSc, Al Jazeera Al Hamra and/or its wholly owned subsidiary Rakeen Private Limited, Mauritius to undertake downstream investments in India companies engaged in infrastructure (including industrial parks and special economic zones) and construction development projects (residential and commercial projects) a government press release said.

Rakindo proposes to act as an investment holding company which will invest in several downstream joint ventures. These downstream joint ventures would be engaged in infrastructure construction development projects which include integrated township, information technology (IT) parks, hotels, resorts, hospitals, housing, retail, office and commercial premises, educational institutions, recreational facilities, city and regional level infrastructure and special economic zones in various parts of India.

Rakindo has plans to build a $1.5 billion integrated township at Coimbatore. The project was actually awaiting government clearance of the FDI proposal, company officials said.

Chennai-based Rakindo Developers, which will be the holding company for the investment, would invest in several downstream joint ventures, an official release stated.