Modi effect? China’s top real estate player looks to invest $10 bn in India

Wang Jianlin, Chairman of China’s top real estate player-Dalian Wanda Group-, met Indian Prime Minister Narendra Modi in New Delhi and expressed his desire to explore business opportunities in India.

If everything goes fine, the Group will invest $10 billion in India in the next 10 years to construct industrial townships and retail properties.

The Beijing-headquartered group, which had an annual income of $38.8 billion in 2014, has a presence in commercial property, tourism, e-Commerce and department stores.

Now, it is looking to build five industrial parks, shopping malls and theme parks in India. Wang is ranked by Forbes as the world’s ninth-richest person with a net worth of $40.4 billion.

During his China visit last month, Modi had pitched for Chinese investment in India to bridge a widening trade gap. His visit saw deals worth $22 billion being signed.

“To correct this trade imbalance, it was necessary that Chinese industry invests and manufactures in India instead of exporting its products to India. India needs to look at infrastructure financing from China,” DIPP secretary Amitabh Kant said at a FICCI event.

Economic Times reported that the government relaxed Foreign Direct Investment norms in the construction sector, easing a three-year lock-in period and other stringent conditions related to built-up area and minimum capitalisation to attract funding in the cash-starved sector.

In meetings with officials from the Department of Industrial Policy & Promotion, the Ministry of External Affairs and state governments, Wang was keen to know about incentives offered by states and the land acquisition process. He sought information on policies for commercial development and retail construction in Delhi, Haryana, Andhra Pradesh, Gujarat and Maharashtra.

“His team wanted to know about the availability of land banks in these states for commercial and retail infrastructure construction. They also wanted to know about the specific investible projects available in states,” a government official told ET.

Though the group entered India through a deal with the Reliance Group in December 2012 to develop the Dhirubhai Ambani Knowledge Centre in Navi Mumbai, it is firming up plans to invest heavily here only now.

Wang also met railway minister Suresh Prabhu, Haryana chief minister Manohar Lal Khattar and private developers. According to sources, Wang met officials of real estate developer DLF as well. The government allowed 100% FDI in railway infrastructure last year.

Source: Business Insider

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