No takers among NRIs for Govt’s FDI invitation

The ministry attributes lack of takers to the fact that the infrastructure industry, like any other investment intensive sector, is in a slump. Since the launch of this scheme, the only feedback the ministry has received is for scaling down plan size and for simplifying the stringent investment guidelines.

Sanjay Verma, executive director of Cushman and Wakefield India, an international property developer, says such response to the scheme goes to show that something’s lacking, not attractive enough for foreign investors.

‘‘Guidelines have to be flexible. For instance, there should be better exit rules for investors in case of a problem. The rules say 50 per cent of project should be finished in five years. If work can’ be finished at the said pace, the investors should be allowed to finish the development in another area,’’ he says. ‘‘The guidelines came much after announcement of opening to FDI. Some investors from Asia and Europe who were interested in the scheme could not even get the guidelines and felt the Government was half-hearted on the issue.’’

UK-based India Property Research Limited (IPRL), together with FICCI, has called for modifications in FDI policy. On criticism about the scheme size and rules, Urban Development Minister Ananth Kumar said: ‘‘We have to give some more time to see result.’’