Govt may okay 100% FDI, privatisation for railways | Latest News India - Hindustan Times
close_game
close_game

Govt may okay 100% FDI, privatisation for railways

Hindustan Times | By, New Delhi
Jul 05, 2014 11:13 AM IST

According to a new proposal, 100% FDI will be permissible in all sectors except ‘rail operations’, where partial investment will be allowed in PPP projects of suburban corridors, high-speed networks and freight lines.

A formal announcement is awaited, but plans have been firmed up to permit 100% foreign direct investment (FDI) in railways. The Department of Industrial Policy and Promotion (DIPP) last week moved a cabinet note to bring in structural and institutional changes required to facilitate the process.

Notably, responding to demands for modernising the Jammu train station, the Prime Minister hinted at a role for private sector Friday.

Hindustan Times - your fastest source for breaking news! Read now.

“This is economically viable too, and I have discussed it with my railway friends. In this, the private parties would also be ready to invest because this is a good project economically and will benefit everyone. This would be a win-win situation and we want to move ahead in this direction,” he said in Jammu.

According to the proposal, 100% FDI will be permissible in all sectors except ‘rail operations’, where partial investment will be allowed in PPP projects of suburban corridors, high-speed networks and dedicated freight lines.

This follows recent discussions on the subject between railways minister DV Sadananda Gowda and minister of state (independent charge) for commerce and industry Nirmala Sitharaman.

As a strategy to modernise the creaky infrastructure of the cash-strapped railways and to fund big-ticket projects, the PM is keen to attract foreign and private investment.

Gowda will make a policy statement on the subject in his rail budget speech on July 8, sources said.

The new FDI policy will address existing anomalies, while enabling private/foreign players to bring in investment into projects including locomotive manufacturing and building world-class railway stations, besides big-ticket projects such as the Mumbai elevated rail corridor, officials said.

The railways technically prohibit foreign investment at present, but have been seeking private and foreign funds for specific projects, including the proposed diesel and electric locomotive factories at Madhepura and Marhaura.

In the past, several rail connectivity routes such as Mundra, Pipavav, Kandla and Mangalore have been commissioned through private line/joint venture route. The 12th five year plan provides for generating investment of approximately Rs 1 lakh crore through the Public Private Partnership (PPP) mode.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Srinand Jha covers the Ministry of Railways and writes on politics in the Hindi heartland. Also interested in media and social/cultural issues.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On