The government today said that it would announce the guidelines for permitting 100 per cent foreign direct investment (FDI) in real estate within a fortnight.
"We have forwarded the proposal to the ministry of finance and the law ministry. We expect a decision within the next 15-20 days," urban development & poverty alleviation minister Ananth Kumar said at a press conference after inaugurating Infranet 2001- Urban Infrastructure here.
The government had earlier allowed 100 per cent FDI in real estate but the guidelines were not announced.
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Earlier, in his inaugural address at the three-day conference, Kumar announced the formation of the task force under the chairmanship of the urban development secretary to chart out a road map for the reforms in urban development. He also asked state governments to reduce registration fee and stamp duty on building activities from the present 15 per cent to 3-5 per cent. Kumar added that a national summit would be organised under the chairmanship of the Prime Minister Atal Bihari Vajpayee to develop a consensus on the issue. The summit would also try to impress upon states to repeal Urban Land Ceiling Act and implementation of Model Rent Control Act, he said.
Kumar said that the Centre would try and convince state governments to rationalise property tax rates as has been done in Patna.
Speaking at the conference, Rakesh Mohan advisor to the Finance Minister said that people will pay user charges for infrastructural facilities only if they are reasonable and commensurate with the services offered.
"The regulatory bodies in the infrastructure sectors should have greater expertise and autonomy than what the government is willing to allow," he added. He suggested that a proper policy structure should be put in place with proper regulatory bodies in order to improve infrastructure in the country. He also called for a greater public-private participation in the sector.
Rakesh Mohan said that while telecom, roads and ports sectors were the success stories, more reforms and planning needs to be done in power and urban development sectors. He said that there is a need for reforms in the civil aviation and the railway sectors.