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

As per the proposal, foreign companies would be allowed to pick up 100 per cent stake in the special purpose vehicle (SPV) that will construct and maintain rail lines connecting ports, mines and industrial hubs with the existing rail network.

"It will be first-to-last mile connectivity between ports and things like coal mines to the existing railway freight stations," the official said.

First-to-last mile connectivity would mean smooth movement of raw materials from mines to ports.

The move will help in attracting more and more FDI besides development of infrastructure for industrial purposes. Indian Railways are facing a cash problem.

Industrial development and exports have been suffering on account of poor infrastructure which hampers output and raises the cost of production.

It is felt railways can play a role in providing a reliable transport facility necessary for promoting industrial growth.

Players setting up sea ports and large mines need efficient railway connectivity.

Welcoming the development, experts said the government should come out with clear rules for public-private-partnership (PPP) projects.

"A clarity is required on scope and terms of PPP projects," head of tax department in corporate law firm Amarchand & Mangaldas, Krishan Malhotra said.
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