CCS to clear FDI proposals in railway beyond 49% in sensitive area

Tags: News
Government has imposed certain restrictions on FDI in railways for projects in "sensitive areas" by stipulating that proposals seeking overseas investments beyond 49% will be cleared by the Cabinet Committee on Security.

Earlier this month, the Union Cabinet had cleared the long-delayed proposal for relaxing foreign direct investment (FDI) policy in the cash-starved Indian Railways.

Sources said that the Home Ministry had raised concerns with regard to rail infrastructure in border areas.

To deal with all the security related issues in "sensitive areas" such as border and tribal areas, FDI proposals beyond 49% will be cleared by the Cabinet Committee on Security (CCS), they said.

In all other areas such as high-speed train systems, suburban corridors and dedicated freight line projects, 100% FDI is permitted through automatic route.

The foreign investment liberalisation in the sector is aimed at helping in modernisation and expansion of the rail projects.

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

According to estimates, the sector is facing a cash crunch of around Rs 29,000 crore and allowing of FDI will help mop up resources.

With the FDI nod, the proposed Mumbai-Ahmedabad high speed rail corridor is expected to get a push. The construction of exclusive rail corridor for freight movement is also likely to get a boost.

EDITORIAL OF THE DAY

  • After the stirring poll triumphs, Modi needs to return to the drawing board

    Having bagged the biggest and most populous state, Uttar Pradesh, prime minister Narendra Modi, will now have to get back to the drawing board to rust

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust: A DANGEROUS NEW GREAT GAME

Push the enemy into an unreal world, one where he ...

Ananda Majumdar

Pitfalls of handing a walkover

Congress workers in Lucknow are said to be behind posters, ...

Zehra Naqvi

Creativity springs from being open to experimentation

When Albert Einstein published his first revolutionary paper on the ...