Govt to look at permitting foreign investors to tap the capital market pre-IPO in Indian real estate sector

Mumbai: 21st September, 2006: Inaugurating the FICCI - International Real Estate Summit 2006 , the Union Minister for Urban Development, Mr. S Jaipal Reddy highlighted the importance of the unique Jawahar Lal Nehru Urban Renewal Mission in the backdrop of an inevitable urbanization that is taking place. He said, “Growth rates in the urban sector will keep shooting up for many years, we expect 40% of people in India to move to urban India by 2025.”

He said that the JLNURM is different from all other schemes as about 50,000 crore will be given by way of grant in next 6 years. This will also prompt urban local bodies to create a matching amount of similar size. However, he emphasized that this amount will be released only when certain conditionality are met with by the respective State Governments such as scrapping of the Urban Land Ceiling Act in totality, simplification of rent control laws in the interest of the land owners and tenants, lowering of stamp duties at least to 5%.

The Minister was confident of 8% growth in the overall economy and said it will continue for another 5 years. He furthermore added “We want to encourage states to go for legislation where the buyers can be guaranteed a clear piece of land with clear titles”.

On the issue of permission to foreign players to tap capital market pre-IPO, he informed that the matter will be taken up seriously at the cabinet. On foreign investment he said, “We are absolutely open to foreign investment in urban sector but we in India must deserve foreign investments.” We need to be transparent”. He later released the FICCI- E&Y Report on Real Estate.


By INRnews Correspondent

Next Articles

« Permit FDI in Indian retail: Sushil Ansal | Home | Indian Real Estate sector growing at 30% annually, FICCI President »

Discuss Real Estate at the INRnews Community

Post a Message or News Article. Ask a question. Search for an answer.

Post a comment below the Article

(Comments are moderated and need to be approved by the site owner. Until then, it won't appear on the entry. Thanks for waiting.)