We are pleased to
release a Regulatory Alert which summarizes amendments made in the Consolidated
FDI Policy through Press note 10 (2014 series) dated December 03, 2014 issued
by Department of Industrial Policy and Promotion (DIPP) with respect to
relaxations of the policy relating to ‘Construction Development Sector’. The
Press note formalizes the amendments brought in by the Union Cabinet vide its
press release dated October 29, 2014 (the same has been circulated in our
Regulatory Alert dated October 31, 2014).
The amendments to FDI policy in construction development sector through the Press note 10 of 2014 is a welcome step. Relaxation brought in the minimum capital and area requirements should attract more investors in projects of smaller size and tier 2 and tier 3 cities. The revised policy also provides clarity on matters such as date of commencement of project, certification of floor area etc. thereby removing the currently prevailing ambiguity.
The revised FDI policy should increase foreign fund flow thereby replacing current high cost of funding in the sector and reducing the over-all cost for end users.
The amendments to FDI policy in construction development sector through the Press note 10 of 2014 is a welcome step. Relaxation brought in the minimum capital and area requirements should attract more investors in projects of smaller size and tier 2 and tier 3 cities. The revised policy also provides clarity on matters such as date of commencement of project, certification of floor area etc. thereby removing the currently prevailing ambiguity.
The revised FDI policy should increase foreign fund flow thereby replacing current high cost of funding in the sector and reducing the over-all cost for end users.
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