New Delhi: The
Indian government has ruled out diluting the norms for
foreign direct investment (FDI) in the real estate sector.
Says Union Minister
for Urban Development Anant Kumar: We want foreign
expertise and capital coming into large projects like
In response to
a demand from some quarters to scale down the size of
the projects where 100-per cent FDI is allowed, he says:
If foreign companies just implement small projects
the country will not benefit, and no new urban infrastructure
will come up.
Adds Kumar: Indian
developers are world class and foreign expertise can be
hired, but we want technology transfer in the urban infrastructure
sector. We want both the country and the companies investing
here to benefit.
He says the townships
that these foreign companies will set up will, to some
extent, solve the growing problem of migration to big
cities. Already one proposal for FDI in the real
estate sector has been cleared and many more are in pipeline.
On its part the government has sanctioned the construction
of 60 lakh houses.
says for the improvement of the infrastructure in cities
across India, Rs 22,000 crore is needed but only Rs 5,000
crore is available. To bridge this gap city councils
have been asked to seek alternative sources.