The Government has exempted foreign direct investment (FDI) in buildings meant for education and old-age homes from the conditions prescribed for the construction sector. It has also amended the policy to provide for companies raising external commercial borrowings to pledge their shares for securing their ECB. The general conditions in the construction sector include a minimum area and built-up area requirement; a minimum capitalisation requirement; and a lock-in period. An official statement on Friday on the changes in the FDI policy said these conditions had constrained investment. Educational institutions and old-age homes have their own special requirements that do not necessarily fit these conditions. The exemption is aimed at bringing up the educational infrastructure to global standards, the statement added.
Source : The Hindu Business Line
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