FDI – Construction Development Projects

Construction development: Township, Built-up infrastructure 100% FDI is allowed under the automatic route in the following: Construction-development projects (including but not restricted to) - Housing, -Commercial premises -Resorts -Educational institutions -Recreational facilities -City and regional level infrastructure, and -Townships

Who can invest in India? A non-resident entity A citizen of Pakistan & Bangladesh or an entity incorporated there can invest only under the government route

Who can get investment? An Indian Company Partnership / Proprietorship Firm by NRI/PIO ▫ Repatriation Basis – Approval Route ▫ Non – Repatriation Basis - Automatic Partnership/Proprietorship Firm by NR (Foreigner) ▫Repatriation – Approval Route ▫Non Repatriation Basis – Approval Route

Investment will be subject to following conditions: 1. Minimum area to be developed -In case of development of serviced housing plots, a minimum land area of 10 hectares -In case of construction-development projects, a minimum built-up area of 50,000 sq.mts - In case of combination projects, any one of the above two conditions would suffice 2. Minimum capitalisation - US$ 10 million for a wholly-owned subsidiary -US$ 5 million for a JV with an Indian partner 3. Lock In period Original investment i.e. the entire amount brought in as FDI with a minimum three-year lock-in from the date of receipt of each FDI installment or from the date of completion of minimum capitalisation, whichever is later.

Investment will be subject to following conditions: 4. At least 50% of each projects must be developed within a period of five years from the date of obtaining all statutory clearances. 5.Investor / Investee will be responsible for the necessary approvals from all the Statutory / Government Bodies.

Exemptions to Conditions… Investment by NRIs is not subject to the conditions (1 to 4) as are applicable in the case of construction development projects. Investment in SEZs, hotels, hospitals, industrial parks (satisfying prescribed conditions), the education sector and old-age homes is also exempt from the conditions (1 to4).

Instruments for receiving FDI Foreign investment is reckoned as FDI only if the investment is made in: Equity shares Fully and mandatorily convertible preference shares Fully and mandatorily convertible debentures

Should you require any information and / or clarification, the undersigned will be glad to provide the same on hearing from your offices. Regards CA. Rajesh Gupta Address:1 Link Road, Middle Basement, Jangpura Ext New Delhi