The Housing Ministry is all set to relax the norms to attract foreign direct investment (FDI) in affordable housing. CNBC-TV18's Nayantara Rai reports.
The Housing Ministry has informed the Department of Industrial Policy and Promotion (DIPP) that an easier regime will attract FDI in the affordable housing segment. The proposal suggests halving the minimum built up area norm from 50,000 square meters to 20,000 square meters. It is also talking about a new minimum capitalisation norm. Currently, it is USD 10 million for the industry.
The ministry is suggesting USD 2.5 million in case there is a joint venture with an Indian partner and USD 5 million minimum capitalisation in cases of 100 percent FDI. Right now, there is no separate FDI regime for affordable housing. It is only for the realty sector. So, all eyes are now on DIPP's next move.