The government allows 100% FDI under an automatic route for development of townships, housing, built-up infrastructure, and construction-development projects (including commercial premises, hotels, resorts, hospitals, educational institutions, and recreational facilities), subject to the following guidelines:
Project criteria
• Minimum area of 10 hectares in the case of servicing housing plots
• Minimum area of 50,000 sqm in the case of construction development projects
• For combination projects, any one of the above two conditions will suffice
Project development
• 50% of project must be developed within five years, from the date of obtaining all statutory clearances
• Not permitted to sell undeveloped plots Capital requirement
Capital requirement
• Minimum capitalization of US$10m for wholly-owned subsidiaries and US$5m for JVs with Indian partners
• Capital to be brought within six months of the incorporation of JV or subsidiary
• Original investment cannot be repatriated before a period of three years from completion of minimum capitalization
• Repatriation allowed only after prior approval from the government
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