He was talking to reporters after his meeting with Finance Minister P Chidambaram and Urban Development Minister Kamal Nath here on the issue.
In November last year, the proposal of the Department of Industrial Policy and Promotion (DIPP) to relax foreign direct investment (FDI) norms in the sector was discussed in the Cabinet meeting but was deferred because of concerns being raised by the Urban Development Ministry on few norms.
Cabinet had directed the ministers to iron out the differences. The DIPP has proposed easy conditions for exit for developers before the three-year lock-in period and a change in the current requirement of having a minimum built-up area of 50,000 sq meters to 20,000 sq meters of carpet area for FDI in construction development projects.
It has also suggested a uniform minimum capitalisation of USD 5 million for both wholly-owned subsidiaries (WOS) and joint ventures with Indian parters. At present, the capitalisation requirement for WOS is USD 10 million.
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