Govt seeks FDI in housing, townships

Commerce and Industry Minister Kamal Nath today said that the government was looking at foreign direct investment (FDI) provisions relating to investment in construction of housing, townships and other built-up infrastructure.

Terming the breakdown of infrasctructure in urban areas as one of the greatest problems today, Nath said the aim was to look at FDI in construction and not in real estate. Foreign investment in real estate will lead to buying and selling of land.

Addressing the national conference on 'Urban Poverty Alleviation through sustainable livelihood' organised by the Confederation of Indian Industry (CII), United Nation's Development Programme (UNDP) and the ministry of urban development, he said increased investment in construction of housing and townships would provide multiple benefits in terms of generating employment and rejuvenating industrial sectors such as cement and steel.

"It will also add to our housing stock and improve our built-up infrastructure, including roads, mass rapid transport systems, electricity, water supply and solid waste treatment systems," he said.

Currently, 100 per cent FDI is permitted in township development. However, the minimum area is 100 acres along with a minimum of 2,000 dwelling untis for about 10,000 population.

Nath said that the United Progressive Alliance was committed to a comprehensive programme of urban renewal and to encouraging and facilitating investment in infrastructure.