The government on Wednesday allowed over Rs 2,000 crore foreign investment in Orange Realty, which will consequently become a foreign-owned Indian company.
The Cabinet Committee on Economic Affairs (CCEA) approved an investment company 'IRVO-III' to inject investment into Orange Realty Pvt Ltd following which the Indian outfit will be able to make different investments, including Rs 2,051 crore in a Special Economic Zone project.
"The investing company is by the name of IRVO-III...That company has a large of number of well-known investors. That company is now investing in Organge Realty Pvt Ltd," Home Minister P Chidambaram said after the CCEA meeting.
The proposal was earlier cleared by the Foreign Investment Promotion Board, but since the investment exceeded Rs 600 crore, it required the CCEA's approval, Chidambaram said.
India allows 100 per cent FDI in the real estate sector subject to certain norms relating to project details.
The approval comes at a time when funds inflow have slowed to a trickle owing to the global financial meltdown.