Govt to permit FDI in LLPs in construction sector

The government is all set to clear a proposal to permit foreign direct investment (FDI) in limited liability partnership (LLP) firms engaged in construction development. FDI is permitted under the automatic route in LLPs that are operating in sectors where 100% foreign direct investment is allowed through the automatic route and there are no FDI-linked performance conditions. In the construction development, 100% foreign direct investment is permitted under the automatic route but with certain conditions. LLP firms in this segment are not permitted to receive foreign funds. The Department for Promotion of Industry and Internal Trade (DPIIT) is approaching the Union Cabinet to seek approval on this score. The DPIIT has also worked on a proposal to permit 100% FDI in AVGC (animation, visual effects, gaming and comics) sector. Finance Minister had already proposed that the government will examine suggestions of further opening up of FDI in this sector.