Government is planning to allow foreign direct investment in the construction sector, Commerce and Industry Minister Kamal Nath said on Tuesday.
"We are reviewing FDI provision relating to investment in construction, housing sector. We are examining it with the aim of spurring development and generating employment in the rural sector," he said in New Delhi.
Speaking at National Conference on 'Urban Poverty Alleviation through sustainable livelihood' organised by Confederation of Indian Industry, UNDP and ministry of urban development, he said the aim was to look at FDI in construction and not in real estate as FDI in real estate would only lead to buying and selling of land.
However, he declined to give a time-frame saying that government was currently holding consultations with the various stakeholders.
Nath said FDI in construction would also stimulate steel and cement industry besides generating employment.
Noting that Prime Minister had already stated that at least an amount $150 billion was required for infrastructure sector in the next 5-10 years, he said with this aim, government was reviewing rules and regulations and had done away with Press Note 18.
Currently, FDI is permitted only in township development, that too with various conditions like $10 million investment.