Govt May Soon Permit FDI In High-Speed Trains, Other Projects

New Delhi: The government is likely to allow foreign direct investment in high-speed trains and other projects including development of rail lines between project sites and existing network.

"The commerce and industry ministry has sent the Cabinet note on the matter and a decision is likely to be taken this this month only," a government official said.

Besides, proposing 100 per cent FDI through automatic route in the cash-starved railway sector, the Department of Industrial Policy and Promotion (DIPP) has also proposed to de-license and de-reserve few areas of the sector.

However, FDI will not be allowed in train operations and safety.

At present, there is a complete ban on any kind of foreign direct investment (FDI) in the railways sector except mass rapid transport systems.

According to the proposal, foreign investment would also be allowed in "sub-urban corridor, high-speed train systems and dedicated freight line projects implemented in PPP mode " the official said.

It has also suggested widening the definition of 'infrastructure' by including railway line and railway sidings.
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