FDI not to be allowed in railway operations sector: Govt

Tags: News
A day after the government gave clearance for fully opening up the railway infrastructure segment to foreign investment, Railway Minister D V Sadananda Gowda today made it clear that FDI will not be allowed in the operations sector of the national transporter.

"As far as the operating portion of the railways is concerned, certainly we are not allowing FDI. (It is) only in infrastructure and other areas," he told reporters outside Parliament House.

He was replying to queries on the criticism by the opposition parties for allowing FDI in the railways.

Gowda said that one has to wait for a few months to guage whether railways would be able to attract foreign investment.

The Cabinet had yesterday approved a proposal to open up cash-strapped railways to foreign investment by allowing 100 per cent FDI in areas such as high-speed train systems, suburban corridors and dedicated freight line projects implemented in PPP mode.

The FDI liberalisation in the sector would help in modernisation and expansion of the railway projects.

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.

On the issue of substandard food served in trains, Gowda said that strict action is being taken against the caterers and fines are being imposed.

"You might have seen some initiatives have been taken. Strict action is being taken against the caterers," he said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • State-owned banks can ride technology surge to penetrate retail segment

    For the first time in recent history, two large private sectors banks, ICICI and Axis have reduced their headcounts.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Amita Sharma

The rabbit hole of outcome budgets

Would you tell me, please, which way I ought to ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture