New Delhi: The Central Government would soon draw norms to relax FDI infusion for the realty sector, including easing the three-year lock-in period rule.

The draft has been finalized and will send for the Cabinet approval, an official said. By relaxing the norms, the Dept of Industrial Policy and Promotion aims to woo more FDI investment and to make houses affordable.

The provisions include easing three-year lock-in period and the minimum capitalization is expected to reduce from $10mn to $ 5 mn for wholly-owned subsidiaries.

The draft also proposed a reduction in the minimum built-up area of 50,000 sq mts to 20,000 sq mts of carpet area in developing projects.

But the current FDI policy, gives an impression of lock-in period of three years by a foreign investor from the date of receipt with the minimum capitalsation.

During April 2000 and July 2013, infra development including townships, and housing, the market received FDI worth $22.43 billion around 11 pc of the total FDI attracted by the country.

The DIPP which deals with FDI related matter, issues provisions in the form Press Notes or consolidated circulars.

Although, the Cabinet had approved 100 pc foreign direct investment in townships, housing and built-up infrastructure and construction developments, the government has imposed conditions on it.