Informative, Innovative and Interactive Site of MP & Chhattisgarh
Un Site Informatif, Innovatif et Interactif de MP & Chhattisgarh

“It is not right in God’s sight to obey men rather than God.”





National
Cabinet approves proposal for 100 per cent FDI in Railways
07-08-2014

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 corridors.

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) model.