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`FDI in townships less than 100 acres likely'

Our Bureau

NEW DELHI, Dec. 12

THE Government is considering allowing 100 per cent foreign direct investment (FDI) in the development of integrated townships of less than 100 acres, according the Union Minister for Urban Development, Mr Ananth Kumar.

Delivering the inaugural address at Infranet 2001, the international conference on infrastructure development organised by the Confederation of Indian Industry (CII), he said that the proposal has been forwarded to the Finance and Law Ministries, who sho uld be giving their decision by end-December.

At present 100 per cent FDI is allowed in the development of integrated townships of over 100 acres.

The Minister noted that he did not see why there should be any opposition to this proposal since it would lead to more investments in the construction sector, which in turn would give a boost to the economy.

In this context, he noted that the Government was making all efforts to boost construction activity. The Centre had even written to the State Governments to bring about reforms in the housing sector by rationalising the registration and stamp duties.

"We have asked the States to bring down the registration fees from 15 per cent to around three per cent which is more realistic. The States have also been asked to hasten the repeal of ULCRA,'' he said.

The Prime Minister, Mr Atal Bihari Vajpayee, will try to evolve a consensus on the issue during the National Summit on housing, which is to be held in the Capital, he said.

Pic.: The Minister for Urban Development, Mr Anant Kumar, with the Advisor to the Finance Minister, Mr Rakesh Mohan, at the Infranet 2001 4th international conference-cum-exposition on infrastructure in the Capital on Wednesday.