Nod to 100% FDI in Rail­ways

How­ever, pro­pos­als in­volv­ing FDI beyond 49 per cent in sen­si­tive ar­eas, from se­cu­rity point of view, will be placed be­fore the Cab­i­net Com­mit­tee on Se­cu­rity (CCS) for ap­proval by the Rail­way Min­istry on a case-to-case ba­sis, said a press note of the Depar

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The gov­ern­ment no­ti­fied the lib­er­alised FDI norms for the rail­ways, per­mit­ting 100 per cent for­eign di­rect in­vest­ment through au­to­matic route in sev­eral ar­eas, in­clud­ing high speed trains.

Other seg­ments of the Rail­ways in which FDI will be al­lowed in­clude sub­ur­ban cor­ri­dor projects through Pub­lic Pri­vate Part­ner­ship (PPP), ded­i­cated freight lines, rolling stock in­clud­ing train sets, Port and min­ing con­nec­tiv­ity projects through dif­fer­ent modes, lo­co­mo­tives/coaches man­u­fac­tur­ing and main­te­nance fa­cil­i­ties, rail­way elec­tri­fi­ca­tion, sig­nalling sys­tems, freight ter­mi­nals, pas­sen­ger ter­mi­nals and in­fra­struc­ture in in­dus­trial parks like rail­way line/sid­ings. in rail projects like gauge con­ver­sion, con­struc­tion of new lines, dou­bling of new lines and main­te­nance PPP projects.

How­ever, pro­pos­als in­volv­ing FDI beyond 49 per cent in sen­si­tive ar­eas, from se­cu­rity point of view, will be placed be­fore the Cab­i­net Com­mit­tee on Se­cu­rity (CCS) for ap­proval by the Rail­way Min­istry on a case-to-case ba­sis, said a press note of the Depart­ment of In­dus­trial Pol­icy and Pro­mo­tion (DIPP).

Fur­ther, def­i­ni­tions of ‘in­fra­struc­ture’ and ‘common fa­cil­i­ties’ have also been widened to in­clude rail­way line/sid­ings (elec­tri­fied rail­way lines and con­nect­ed­ness to the main rail­way.

The FDI lib­er­al­i­sa­tion in the sec­tor would help in mod­erni­sa­tion and ex­pan­sion of rail­way projects. How­ever, FDI will not be al­lowed in train op­er­a­tions and safety.

Ear­lier, FDI was al­lowed only in Mass Rapid Trans­port (MRT) sys­tems. This move is likely to find favour with coun­tries like Ja­pan and China, what are in­ter­ested in in­vest­ing mega-projects.

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