The proposal to relax foreign direct investment (FDI) norms for construction development is silent on land-use rules for the sector.While the Cabinet note being finalised by the Department of Industrial Policy & Promotion includes proposals for reduction in minimum area requirement and minimum capitalisation norms, it is silent on land-use issues including agricultural land. “Norm on land-use is a local issue which will vary from State to State. The FDI policy on construction development has nothing to do with it,” a DIPP official told BusinessLine .The Cabinet note, which has already received inter-ministerial comments and is being readied for internal approval, proposes reducing minimum built-up area requirement for FDI from 50,000 square metres to 20,000 square metres and halving minimum capitalisation norm from $10 million to $ 5 million respectively, the official said.

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