"The proposal has been deferred due to ongoing elections in Bihar and Jharkhand," Commerce and Industry Minister Kamal Nath told reporters.
The government is keen on allowing FDI in the construction sector as it would not only generate employment but also spur development of urban infrastructure besides bringing in hi-tech construction technology.
The proposal was to relax existing 100 acre norm for FDI inflow and allow it in the office accomodation sector of 50,000 sq ft.
Besides this, the earlier stipulation of FDI in integrated township development is also sought to be relaxed.
The Cabinet Committee in Economic Affairs was expected to consider allowing FDI in construction starting from 25 acres against the current practise of allowing FDI in 100 acres applicable only in integrated towns.