The Government of India has opened up railway infrastructure for domestic as well as foreign investors. Department of Industrial Policy & Promotion (DIPP) press note no. 8 dated 27th August, 2014 has been issued by the government opening up the rail infrastructure for investment by the private sector. The following activities has been opened up for FDI.
Construction, operation, maintenance of
(i) Suburban corridor projects through PPP;
(ii) High speed train projects;
(iii) Dedicated freight lines;
(iv) Rolling stock including train sets, and locomotives/ coaches manufacturing and maintenance facilities
(v) Railway electrification;
(vi) Signalling systems;
(vii) Freight terminals
(viii) Passenger terminals
(ix) Infrastructure in industrial park pertaining to railway line/ sidings including electrified railway lines and connectivities to main railway lines, and
(x) mass rapid transit systems.
100% FDI is allowed automatic basis but FDI beyond 49% of the equity of the investee company in sensitive areas will be put forth to the Cabinet Committee on Security for consideration on a case by case basis.
They have not allowed FDI or private investment in maintenance of railway stations or platforms and that is much needed because the existing infrastructure for maintenance and upkeep of the railway stations and platforms is not at all adequate, especially from the point of view of facilities to the passengers. I thought they should have allowed private investment in online and offline bookings as well because the IRCTC site as we know is totally unreliable.
A copy of the DIPP press note can be found here
Construction, operation, maintenance of
(i) Suburban corridor projects through PPP;
(ii) High speed train projects;
(iii) Dedicated freight lines;
(iv) Rolling stock including train sets, and locomotives/ coaches manufacturing and maintenance facilities
(v) Railway electrification;
(vi) Signalling systems;
(vii) Freight terminals
(viii) Passenger terminals
(ix) Infrastructure in industrial park pertaining to railway line/ sidings including electrified railway lines and connectivities to main railway lines, and
(x) mass rapid transit systems.
100% FDI is allowed automatic basis but FDI beyond 49% of the equity of the investee company in sensitive areas will be put forth to the Cabinet Committee on Security for consideration on a case by case basis.
They have not allowed FDI or private investment in maintenance of railway stations or platforms and that is much needed because the existing infrastructure for maintenance and upkeep of the railway stations and platforms is not at all adequate, especially from the point of view of facilities to the passengers. I thought they should have allowed private investment in online and offline bookings as well because the IRCTC site as we know is totally unreliable.
A copy of the DIPP press note can be found here
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