【New Delhi】Finance, Commerce and Urban Development ministers will meet soon to sort out the differences over relaxation of FDI norms for the construction sector.
"FDI in construction is being deliberated upon (by the Cabinet). Three ministers will meet. Myself, Finance Minister (P. Chidambaram) and Urban Development Minister Kamal Nath. That is what the Cabinet has said...The decision will be (taken) soon," Commerce and Industry Minister Anand Sharma told PTI on Tuesday.
Last month, the proposal of the Department of Industrial Policy and Promotion (DIPP) to relax foreign direct investment (FDI) norms in the sector was discussed at the Cabinet meeting but was deferred because of concerns being raised by the Urban Development Ministry on few norms.
DIPP has proposed easy conditions for exit for developers before the three-year lock-in period and a change in the current requirement of having a minimum built-up area of 50,000 sq.m. to 20,000 sq.m. of carpet area for FDI in construction development projects.
Meanwhile after a gap of over a year, the government is set to award a highway project in the build, operate and transfer (BOT) category in what marks its effort to revive the public-private partnership (PPP) model in the sector.
According to sources, the first PPP project of this fiscal in highways will soon be awarded to Mumbai-based IRB Infrastructure Developers for widening a 98.72-km stretch between Solapur and Yedeshi in Maharashtra to four lanes.
The project, estimated to cost R972 crore, would be supported by viability gap funding (VGF) of 19% by the National Highways Authority of India (NHAI).
【News source】
Easing of FDI norms in construction sector to be discussed soon: Sharma
NHAI awards first BOT project in a year, paves way for more
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