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FDI – Construction Development Projects

FDI – Construction Development Projects. Construction development: Township, Built-up infrastructure . 100% FDI is allowed under the automatic route in the following: Construction-development projects (including but not restricted to) - Housing, - Commercial premises - Resorts

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FDI – Construction Development Projects

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  1. FDI – Construction Development Projects

  2. Construction development: Township, Built-up infrastructure 100% FDI is allowed under the automatic route in the following: Construction-development projects (including but not restricted to) - Housing, - Commercial premises - Resorts - Educational institutions - Recreational facilities - City and regional level infrastructure, and - Townships

  3. Who can invest in India? • A non-resident entity • A citizen of Pakistan & Bangladesh or an entity incorporated there can invest only under the government route

  4. Who can get investment? • An Indian Company • Partnership / Proprietorship Firm by NRI/PIO • Repatriation Basis – Approval Route • Non – Repatriation Basis - Automatic • Partnership/Proprietorship Firm by NR (Foreigner) • Repatriation – Approval Route • Non Repatriation Basis – Approval Route

  5. Investment will be subject to following conditions: 1. Minimum area to be developed - In case of development of serviced housing plots, a minimum land area of 10 hectares - In case of construction-development projects, a minimum built-up area of 50,000 sq.mts - In case of combination projects, any one of the above two conditions would suffice 2.Minimum capitalisation - US$ 10 million for a wholly-owned subsidiary - US$ 5 million for a JV with an Indian partner 3. Lock In period Original investment i.e. the entire amount brought in as FDI with a minimum three-year lock-in from the date of receipt of each FDI installment or from the date of completion of minimum capitalisation, whichever is later.

  6. Investment will be subject to following conditions: 4. At least 50% of each projects must be developed within a period of five years from the date of obtaining all statutory clearances. 5. Investor / Investee will be responsible for the necessary approvals from all the Statutory / Government Bodies.

  7. Exemptions to Conditions… • Investment by NRIs is not subject to the conditions (1 to 4) as are applicable in the case of construction development projects. • Investment in SEZs, hotels, hospitals, industrial parks (satisfying prescribed conditions), the education sector and old-age homes is also exempt from the conditions (1 to4).

  8. Instruments for receiving FDI Foreign investment is reckoned as FDI only if the investment is made in: • Equity shares • Fully and mandatorily convertible preference shares • Fully and mandatorily convertible debentures

  9. Should you require any information and / or clarification, the undersigned will be glad to provide the same on hearing from your offices. Regards CA. Rajesh Gupta Address : 1 Link Road, Middle Basement, Jangpura Ext New Delhi - 110014

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