The proposal, announced by the former urban development minister Ram Jethmalani last year, was referred to a four-member ministerial committee for clearance but the committee has not yet submitted its report for placing of the proposal before the cabinet for approval.

"The proposal was to be considered by a ministerial committee but the same has not met," Jethmalani told PTI but expressed hope that it would soon be placed before the cabinet for clearance.

The proposal envisages 100 per cent direct investment in housing and urban infrastructure sector with a cap of three years on repatriation of profits on the money invested.

The matter was referred to a group of ministers (GoM) headed by external affairs minister Jaswant Singh. Finance minister Yashwant Sinha and human resourcedevelopment minister Murli Manohar Joshi, besides Jethmalani are the other members.

The GoM had a meeting in December last after which Jethmalani circulated a personal note to the panel members giving them a certain timeframe to give their replies, stating that failure to do so was to be construed that they had nothing against the proposal and the same could be sent to the cabinet for its final approval. FDI in the housing sector, which follows the repeal of Ulcra Act aims at boosting housing activities in the country besides removing shortage of dwelling units greatly and also to make houses available at cheaper rates.