Odisha realtors welcome FDI in multi-brand retail

Opening the gates to foreign investors will benefit both real estate sector as well as state economy, say developers

The recent decision by the Union government to allow 51 per cent foreign direct investment(FDI) in retail has been welcomed by Odisha's realty developers.

Even as the state government has kept its cards close to its chest on the move to allow foreign investors in multi-brand to the state, developers feel that such a reform will boost the real estate sector.

"FDI in retail is welcomed, it is a boost for the  real estate sector in the state. Government should act as facilitating agent to accommodate  these retail players," said Tapan Mohanty, Managing Director, Z Engineers Pvt Limited, a city-based realtor.

Mohanty said opening the gates for these retail majors will not only help the real estate sector but it will contribute to the state's economy as well. In addition, opening of retail chains by Walmart, Tesco  will offer people more choices to pick from, he added.

None of the cities in the state figure in the list of 53 cities identified by the Centre for attracting foreign investment in retail, as they do not qualify the enabling the term of having more than one million population as per the official census. However, real estate developers feel that addition of some more villages with the municipality corporation can make the city eligible.

Realtors say inclusion of more villages like Kalarahanga, Hanspal, Sunderpada, Patrapada, which are developed at par those with in city limits will take the population count beyond one million, thus making the city eligible.

The commercial establishments will grow by leaps and bounds with the arrival of the foreign retail chains. It will also make the real estate market more competitive, said DS Tripathy, President, Confederation of real estate developers association of India (Credai),Odisha Chapter.

FDI in retail is envisaged to create nearly 20 million jobs in three years and will bring $700 million investment in the country.