Indian Government gives green signal to FDI Proposals

December 15, 2006	(Be the first to rate this story!)  Loading ...
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The government on Thursday gave a nod to the FDI proposals worth Rs. 4,853 crore, a major portion of which (Rs, 4,080 crore) has been allocated for the use in real estate sector.  It is certainly a merry time for both the NRIs and foreign investors who have been eyeing Indian real estate for long.

Finance Minister P. Chidambaram has approved the two sets of investments by a clutch of overseas investors to invest in commercial as well as residential property, IT parks, and special economic zones.

Urban Infrastructure Ventures Capital Ltd. will provide the first set if investments with an initial investment capital of Rs. 2,484 crore. The company will work as a venture capital fund for the sector thereby providing funds to the companies looking out for investing in the red hot property market in India.

Many foreign construction companies and investors are all set with their collective investment of over Rs. 30,000 crore to park in Indian real estate sector. Mr. Chidambaram has also given his consent regarding set up of a fund called Peninsula Realty Fund (PRF), with an amount of over Rs. 1,596 crore which will be utilized to finance construction projects.

At present, two different schemes A & B have been created by the PRF. Various real estate projects entertaining the interest of domestic investors will fall under the scheme A. Contrary to this, the scheme B will deal with investments in projects that are compliant with FDI related policies of the government.

PRF is launched by Peninsula Land Ltd. which has been looking out for large acreage projects all over India to fund its expansion. The company is also believed to be working on its expansion mode into SEZs and tech parks in Goa and Pune.

News Published Under:   Real Estate India, Foreign Direct Investment in India |

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