Positive response to FDI in construction sector: Selja

Hyderabad, Nov 17 (UNI) The UPA government's decision to allow 100 per cent Foreign Direct Investment (FDI) into the construction industry has evoked 'encouraging response' from investors from abroad, Union Minister of State for Housing K Selja said today.

Talking to mediapersons here she said a number of countries were showing interest to invest in India as the overseas corporate markets had considered it a stable country to invest.

''West Bengal is in the forefront of attracting FDIs in the real estate sector,'' she added.

The Indian government in March 2005 had amended existing norms to allow 100 per cent FDI in the construction business. Till then only NRIs and Persons of Indian Origin (PIOs) were permitted to invest in the housing and the real estate sectors.

Industry sources said the inflow into the real estate sector, which was about 500 million dollars prior to opening up, would rise to a massive seven to eight billion dollars over the next 18-30 months.

Earlier, inaugurating a two-day national conference on 'housing and human settlement' here, she said the Union Cabinet would shortly give its nod for a new urban housing and habitat policy to provide a more enabling environment for promoting sustainable habitat in the country.

The policy proposed to promote further FDI in integrated townships, real estate, public-private partnerships, development of secondary mortgage markets, securitisation and pro-poor partnership where 10 to 15 per cent of land was earmarked for providing dwelling units for economically weaker sections and low income group segments in an inclusive manner.

A Model Act on Urban Street Vending was being finalised to facilitate and regulate street hawking activites, she said adding that the national policy on urban street vendors was being made more effective in consultation with stake holders, including representatives of states, vendors and experts.

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