Govt mulls ease in FDI norms for low-cost housing

A day after the cabinet relaxed norms in foreign direct investment (FDI) across various sectors, the government may soon be liberalising FDI norms in low cost housing, reports CNBC-TV18’s Rituparna Bhuyan.

Also read: Cabinet eases norms for FDI in multi-brand retail There are several conditions on real estate development in India is concerned, which the government is considering to ease. For instance; the built up clause for low cost housing implies that means that only big developers could go in for such housing projects with FDI. However, the government is now thinking to relax the built up area norms which may boost FDI in low cost housing. Sources say that the department of industrial policy and promotion (DIPP) is awaiting a report from the ministry of housing to take this proposal forward. It may also be working on clarifying norms regarding multi-brand retail by Indian owned and controlled companies in the sector. Further clarity on downstream investments in such companies; whether FDI conditions apply or not; will be given. According to officials, there could be more consultations regarding this.