Govt relaxes FDI rules in construction - TV channels

NEW DELHI (Reuters) - The Indian government has relaxed rules for foreign direct investment in the construction sector, two local television channels said on Wednesday, citing unnamed sources.

The move will facilitate overseas capital to invest in building homes, offices and shopping centres in Asia's third-largest economy, helping Prime Minister Narendra Modi deliver on his promise of creating 100 smart cities in India by 2020.

In its maiden budget in July, Modi's administration had proposed easing built up area and minimum capital requirement for foreign investments.

(Reporting by Aditi Shah; Editing by Rajesh Kumar Singh)