The Himachal Pradesh government has decided to allow foreign direct investment (FDI) in realty for developing new satellite towns near Shimla, Solan, Dharamsala and Mandi, Town and Country Planning and Urban Development Minister Sudhir Sharma said here Monday.
"We have decided to develop new satellite towns near Shimla, Solan, Dharamsala and Mandi towns by allowing foreign direct investment (FDI) in real estate," Sharma told IANS.
He said the townships would be developed by private players in joint venture with HIMUDA (Himachal Pradesh Urban Development Authority).
"The cabinet is yet to give the green signal to FDI in real estate."
The minister said the reason behind developing the new township was to decongest the main towns.
"The towns are almost overpopulated and there is no scope for further expansion. Even they are facing a problem of water shortage, besides traffic chaos," he said.
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Two days ago Food and Civil Supplies Minister G.S. Bali announced that international retail giants Walmart and Metro Cash and Carry would be allowed to open stores in the state.
The opposition BJP has already come out against the decision on FDI in retail.
"Retail chains will not be allowed to enter the state if the interest of small, marginal traders is at stake," state BJP president Satpal Satti has said.