【New Delhi】The Union Cabinet on the 6th August allowed foreign investment in the Railways for the first time, steps intended to raise funds for expansion of the Railways.
According to the Economic Times' report, hereafter, 100 per cent foreign investment in railway infrastructure projects will be allowed.
Meanwhile according to the Deccan Herald's report, contrary to the assertion of the government that the Railways is opening up only some areas like bullet trains and dedicated freight corridors to domestic and foreign private investment, the national transporter has proposed to open up almost 10 important areas of rail production. These include production of rolling stock, electrification, signalling systems, freight terminals, passenger terminals and Mass Rapid Transport System (MRTS).
The Railways, which has till now been completely insolated from private investment, including FDI since Independence, has been given approval for 100 per cent FDI in infrastructural projects. For this, the government will have to amend Schedule-1 of the Industries (Development and Regulation) Act of 1951. The Act, which has been amended from time to time, has reserved rail transport and atomic energy for the public sector.
【News source】
Cabinet approves raising FDI cap in defence to 49 per cent, opens up railways
Railways opens 10 production areas for FDI infusion
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