Cabinet defers FDI in construction

NEW DELHI, Feb 17 (UNI): The Union Cabinet today deferred its decision on allowing Foreign Direct Investment (FDI) in the construction sector in view of the ongoing Assembly elections inBihar and Jharkhand.

A decision will be taken before the Union Budget on February 28, offical sources said.

At present, FDI in the construction sector is restricted to the development of integrated townships with a minimum area of 100 acres.

The real estate industry view the present limit as extremely restrictive, and are demanding relaxation of the 100-acre norm, besides FDI in construction of commercial properties such as shopping malls and hotels.