FDI IN URBAN INFRASTRUCTURE AND REAL
ESTATE DEVELOPMENT
An amount of Rs.
580.64 crore has been invested by NRIs/PIO in the housing and
real estate development sector as on 29.10.2002. Non-Resident
Indians (NRIs), People of Indian Origin (PIO) and overseas corporate
bodies predominantly owned by NRIs/PIO to the extent of at least
60% are permitted to invest in housing and real estate development
sector. This information was given by the Minister of State for
Urban Development & Poverty Alleviation, Shri Pon. Radhakrishnan
in a written reply to a question of Shri C. Ramachandraiah and
Shri K. Kalavenkata Rao in Rajya Sabha today.
It was stated that Foreign Direct
Investment (FDI) in urban infrastructure is permitted through
automatic route. FDI is also permitted in development of integrated
township including housing and building material with prior approval
of Central Government. However, FDI is not permitted in real estate
development.
