Cabinet approves proposal for 100 per cent FDI in Railways
NEW DELHI: Union government on Wednesday approved a
proposal to allow 100 per cent foreign direct investment (FDI) for building
Railways infrastructure. Foreign capital in Railways was not allowed till now.
However, the new government led by Prime Minister
Narendra Modi has been pushing for it to build infrastructure projects such as
high-speed trains and railway lines to and from coal mines and ports.
Currently, the cash-strapped Railways cannot fund
these projects without private participation. Foreign players from Japan and
China are said to be keen to participate in building up of the infrastructure.
The proposal sought to allow FDI participation in
erecting projects relating to electrification, high-speed tracks and suburban
Last-mile connectivity to boost business activity in
and around ports and mines has been proposed through formation of special
purpose vehicle (SPV) companies under the public private partnership (PPP)