PUBLISHED BY: SURENDER KUMAR
AUGUST 07, 2014
The Cabinet has cleared a proposal to allow 100 % foreign direct investment (FDI) in Indian Railways. Two American companies GE and EMD have been shortlisted for a proposed diesel locomotive factory in Bihar. Now, except for Railways operations, FDI can be brought into all special purpose vehicles, companies and joint ventures as equity infusion.
With this change, FDI is allowed in high-speed train systems, freight terminals, building of rail links, electrification and signalling systems. It will also be possible to invest FDI in manufacturing, construction and maintenance, spread over 20-30 years. Notably, private investments already exist in rail-based industries such as metro coaches, wagons and wheel manufacturing units.
FDI will also be allowed in suburban corridors and dedicated freight lines to be executed under public-private partnership.