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FDI in Railways

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Commuter Rail

Whether or not foreign direct investment (FDI) will be allowed for high speed trains in Indian Railways is still being discussed as the Home Ministry is yet to respond to the Cabinet note sent by the Department of Industrial Policy and Promotion’s (DIPP) to the Home Ministry.

Ever since the government opened FDI in different sectors, it has also been discussing and debating if FDI should be allowed in case of high speed trains and railway infrastructure to make the sector more competitive.

- - - The DIPP has proposed 100 per cent FDI through automatic route in the cash-starved railways sector. However, FDI will not be allowed in areas related to train operations and safety.

At present, there is a complete ban on FDI in the railways sector except the mass rapid transport systems.

According to the proposal, foreign investment would also be allowed in “sub-urban corridor, high-speed train systems and dedicated freight line projects implemented in PPP mode”.

DIPP has also suggested that companies should be allowed to pick up 100 per cent stake in the special purpose vehicle (SPV) that will construct and maintain rail lines connecting ports, mines and industrial hubs with the railways network.

For the full text of the article in the New Indian Express, click here.

Well, is this the route then for Namma Railu?

And, don't understand why "FDI will not be allowed in areas related to train operations and safety", particularly when every second day there is a train going up in flames (check this)?

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