The new FDI norms will make entry and exit for foreign investors easier. A foreign investor will now be permitted to exit and repatriate foreign investment before the completion of project under automatic route, provided that a lock-in-period of three years, calculated with reference to each tranche of foreign investment has been completed. Further, transfer of stake from one non-resident to another non-resident, without repatriation of investment will neither be subject to any lock-in period nor to any government approval.
The construction delays result not only results in huge cost overruns but also impact the investor sentiments. Thus, still there is a dire need to strengthen approval process to streamline the risk return equation because ultimately, ROI will attract foreign investor to invest in the country in long run.