FDI relaxation in construction, railways to be decided by new govt
The new government will take decisions on the Commerce and Industry Ministry’s proposal to relax foreign direct investment policy in construction and railways. The nine—phase general elections for the 16th Lok Sabha has started from April 7 and counting will be held on May 16. The new government is scheduled to be formed next month.
The Ministry of Commerce and Industry has requested the approval of the Election Commission to move ahead with its proposal to liberalise FDI policy in railways and the construction activity. The underlying objective is to attract foreign capital and knowhow to improve railways where India is yet to develop the required technology. Moreover, the department has proposed reforms in construction development projects. They propose relaxed norms 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 metres to 20,000 sq metres of carpet area. At present, the capitalisation requirement for Wholly Owned Subsidiaries (WOS) is $10 million. A uniform minimum capitalisation of $5 million for both WOS and joint ventures with Indian partners has been proposed.
Source: The Hindu Business Line
capitalisation, Commerce and Industry Ministry, Construction, Elections, FDI, liberalise, Lok sabha, Railways, regulations, wos
