Source: The Economic Times

The government will notify in 2-3 days the relaxed norms for foreign direct investment in construction, Amitabh Kant, secretary, Department of Industrial Policy and Promotion, said on Thursday.

“Notification on FDI in construction would be out in 2-3 days,” Kant said on the sidelines of the India Economic Summit.

The Union Cabinet had last week relaxed norms for FDI in construction by reducing minimum built-up area as well as capital requirement and easing the exit norms  to boost investment in the cash-starved real estate sector.

The Cabinet reduced the minimum floor area to 20,000 sq mt from 50,000 sq mt and brought down the minimum capital requirement to $5 million from $10 million. The rules will also give a boost to the 100 smart cities being planned by the government. The sector attracted $1.2 billion of FDI in 2013-14, down 8% from 2012-13.