Con­sol­i­dated fdi Pol­icy

Con­struc­tion de­vel­op­ment: town­ships, hous­ing, BUILT-UP in­fra­struc­ture

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Con­struc­tion-de­vel­op­ment projects in­clude de­vel­op­ment of town­ships, con­struc­tion ofres­i­den­tial/com­mer­cial premises, roads or bridges,ho­tels, re­sorts, hospitals, ed­u­ca­tional in­sti­tu­tions, recre­ational fa­cil­i­ties, city and re­gional level in­fra­struc­ture, town­ships Each phase of the con­struc­tion de­vel­op­ment project would be con­sid­ered as a sep­a­rate pro­ject­for the pur­poses of FDI pol­icy. In­vest­ment will be sub­ject to the fol­low­ing con­di­tions: (A) (i) The in­vestor will be per­mit­ted to exit on com­ple­tion of the project or af­ter de­vel­op­ment oftrunk in­fra­struc­ture i.e. roads, wa­ter sup­ply, street light­ing, drainage and sew­er­age. (ii) Notwith­stand­ing any­thing con­tained at (A) (i) above, a for­eign in­vestor will be per­mit­tedto exit and repa­tri­ate for­eign in­vest­ment be­fore the com­ple­tion of project un­der au­to­mati­croute, pro­vided that a lockin-pe­riod of three years, cal­cu­lated with ref­er­ence to each­tranche of for­eign in­vest­ment that has been com­pleted. Fur­ther, trans­fer of stake from onenon-res­i­dent to an­other non-res­i­dent, with­out repa­tri­a­tion of in­vest­ment will nei­ther be­sub­ject to any lock-in pe­riod nor to any gov­ern­ment ap­proval. (B) The project shall con­form to the norms and stan­dards, in­clud­ing land use re­quire­ments and­pro­vi­sion of com­mu­nity ameni­ties and com­mon fa­cil­i­ties, as laid down in the ap­pli­ca­ble build­ing­con­trol reg­u­la­tions, bye-laws, rules, and other reg­u­la­tions of the Stat­e­gov­ern­ment/mu­nic­i­pal/ Lo­cal Body con­cerned. (C) The In­dian in­vestee com­pany will be per­mit­ted to sell only de­vel­oped plots. For the pur­pos­esof this pol­icy, “de­vel­oped plots” will mean plots where trunk in­fra­struc­ture i.e. roads, wa­ter sup­ply,street light­ing, drainage and sew­er­age, have been made avail­able. (D) The In­dian in­vestee com­pany shall be re­spon­si­ble for ob­tain­ing all nec­es­sary ap­provals, in­clud­ing those of the build­ing/lay­out plans, de­vel­op­ing in­ter­nal and pe­riph­eral ar­eas and other in­fra­struc­ture fa­cil­i­ties, pay­ment of de­vel­op­ment, ex­ter­nal de­vel­op­ment and other charges and­com­ply­ing with all other re­quire­ments as pre­scribed un­der ap­pli­ca­ble rules/bye-laws/ reg­u­la­tion­sof the State Gov­ern­ment/ Mu­nic­i­pal/lo­cal Body con­cerned. (E) The State Gov­ern­ment/mu­nic­i­pal/ Lo­cal Body con­cerned, which ap­proves the­build­ing/de­vel­op­ment plans, will mon­i­tor com­pli­ance of the above con­di­tions by the de­vel­oper.

• FDI is not per­mit­ted in an en­tity which is en­gaged or pro­poses to en­gage in­real es­tate busi­ness, con­struc­tion of farm houses and trad­ing in trans­fer­able de­vel­op­ment rights( TD RS ).

• “Real es­tate busi­ness” means deal­ing in land and im­mov­able prop­erty with a view toearn­ing profit there from and does not in­clude de­vel­op­ment of town­ships, con­struc­tion ofres­i­den­tial/ com­mer­cial premises, roads or bridges, ed­u­ca­tional in­sti­tu­tions, recre­ational fa­cil­i­ties, city and re­gional level in­fra­struc­ture, town­ships. Fur­ther, earn­ing of rent/ in­come on­lease of the prop­erty, not amount­ing to trans­fer, will not amount to real es­tate busi­ness.

• Con­di­tion of lock-in pe­riod at (A) does not ap­ply to Ho­tels &Tourist Re­sorts, Hospitals, spe­cial Eco­nomic Zones (SEZS), Ed­u­ca­tional In­sti­tu­tions, Old Age Homes and in­vest­ment byn­ris.

• Com­ple­tion of the project will be de­ter­mined as per the lo­cal byelaws/rules and other reg­u­la­tions of State Gov­ern­ments.

• Con­se­quent to for­eign in­vest­ment, trans­fer of own­er­ship and/or con­trol of the in­vesteecom­pany from res­i­dents to non-res­i­dents is also per­mit­ted. How­ever, there would be a lockin-pe­ri­odof three years, cal­cu­lated with ref­er­ence to each tranche of FDI, and trans­fer ofim­mov­able prop­erty or part thereof is not per­mit­ted dur­ing this pe­riod.

• Also, 100% FDI un­der au­to­matic route is per­mit­ted in com­pleted projects for op­er­a­tion and man­age­ment of town­ships, malls/ shop­ping com­plexes and busi­ness cen­tres as well as in­dus­trial parks - new and ex­ist­ing.

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