Norms allowing 100 percent FDI in railways notified by Govt.

The Government of India on Thursday notified liberalized Foreign Direct Investment (FDI) norms for the railways, permitting 100 percent FDI through automatic route in several areas, including high speed trains.

The other segments in railways where FDI will be allowed are suburban corridor projects through Public Private Partnership (PPP) model, dedicated freight lines, rolling stock including train sets, locomotives/coaches manufacturing and maintenance facilities, railway electrification, signaling systems, freight terminals, passenger terminals and infrastructure in industrial parks like railway line.

"Proposals involving FDI beyond 49 percent in sensitive areas will be placed before the Cabinet Committee on Security for approval by the Railway Ministry on a case-to-case basis," said a release from the Department of Industrial Policy and Promotion.

The railway line will also come under 'infrastructure' and 'common facilities'. The FDI liberalization will help in modernization and expansion of railway projects. However, FDI will not be allowed in train operations and safety.