Government rules out diluting norms for FDI in realty sector
By Arup Chanda | 23 Oct 2002
New Delhi: The Indian government has ruled out diluting the norms for foreign direct investment (FDI) in the real estate sector.
Says Union Minister for Urban Development Anant Kumar: “We want foreign expertise and capital coming into large projects like integrated townships.”
In response to a demand from some quarters to scale down the size of the projects where 100-per cent FDI is allowed, he says: “If foreign companies just implement small projects the country will not benefit, and no new urban infrastructure will come up.”
Adds Kumar: “Indian developers are world class and foreign expertise can be hired, but we want technology transfer in the urban infrastructure sector. We want both the country and the companies investing here to benefit.”
He says the townships that these foreign companies will set up will, to some extent, solve the growing problem of migration to big cities. “Already one proposal for FDI in the real estate sector has been cleared and many more are in pipeline. On its part the government has sanctioned the construction of 60 lakh houses.”
He says for the improvement of the infrastructure in cities across India, Rs 22,000 crore is needed but only Rs 5,000 crore is available. “To bridge this gap city councils have been asked to seek alternative sources.”