Promising returns of 25%, real estate india and infrastructure can expect further investments from foreign investors in the next few months. Recently, Plaza Centers NV announced a Rs.50 billion investment in India, while Dubai’s Nakheel group committed USD 10 billion to Indian realty in a tie-up with DLF for residential projects in Tier I and II cities.

Close on its heels was a concerted USD 200 million investment from Khaleej Finance and Investment (KFI) from Bahrain, Kuwait Investment Company (KIC) and Kuwait Finance House (KFH) Morgan Stanley extended support to Oberoi Constructions of Mumbai with funds worth Rs.150 million.

The IL&FS promoted real estate fund was selected by California Public Employees'' Retirement System for a USD100 million investment. HDFC raised USD 800 million through the overseas fund to invest in FDI-compliant real estate projects.

Yatra Capital, Ascendas, Westport Capital Partners LLC and individual investor Nicolas Berggruen are some of the financiers bidding for projects in India’s hospitality, residential, warehousing and storage sectors. With official estimates for IT space likely to be 150 million sq. ft by 2010, and a shortage of almost 20 million dwelling units, foreign investors are confident of India as an investment destination.

Meanwhile, a fresh set of FDI proposals met the Finance Ministry’s approval on August 31, based on recommendations by the Foreign Investment Promotion Board. The 17 approvals worth Rs.2.84 billion included the proposal from Sogeparticipations of France for portfolio management services.

The approval will see Diesel International of the Netherlands tying up with Arvind Mills to set up Diesel Retail stores in India.

Another joint venture would also be operational between Japan’s JTEKT Corp and Sono Koyo of India. The Publicis Group has also been accorded approval for purchase of shares in Capital Advertising. Kazstroy Services PLC of the UK would also be allowed to invest in its three Indian subsidiaries.

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