Exit allowed on prior approval before existing lock-in period of three years
The Government of India has relaxed norms for foreign direct investment (FDI) in the construction sector, as per the press note released by the DIPP.The requirement of minimum area to be developed under each project has been waived off in case of development of serviced plots against 10 hectares earlier, while in case of construction-development projects it stands reduced to 20000 sq. meters against 50000 sq meters earlier.
Investee Company will be required to bring minimum FDI of US$ 5 million within six months of commencement of the project against US$ 10 million earlier.
The investor will be permitted to exit on completion of the project or after development of trunk infrastructure i.e. roads, water supply, street lighting, drainage and sewerage.
The Government may, in view of facts and circumstances of a case, permit repatriation of FDI or transfer of stake by one non-resident investor to another non-resident investor, before the completion of project against the existing lock-in period of three-years. These proposals will be considered by FIPB on case to case basis.
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