MP Rana
The Government holds plans of exempting the mixed development projects in Real Estate from area development and minimum capitalization rules.
Mixed development project comprises recreational facilities, townships, housing, commercial premises, multiplexes and hotels.
The proposal has been presented by the ministry of commerce and industry. A committee of secretaries has been framed for the purpose of discussing the viability of this proposal.
Presently, 100 percent FDI is allowed in mixed development projects, given some of the conditions are confirmed to. These include capitalization up to $10 million or more than this; possesses a minimum of 25 acres of area with a lower limit for built-up area of about 50,000 square feet.
However, after the changes are implemented, no capitalization limit would exist; requirement of 25,000 acres and built-up area would be curtailed to mere 10,000 acres and 10,000 square feet respectively. Also, a lock-in period of 3 years, form the date of project’s completion would be enforced.
Besides this, the developers will be asked to retain a minimum of 50% area for Hotel and Tourism activities. Also, a check on whether the residential buildings are being used for non-residential purposes would be put.
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