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E-mail ID will not be published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.

EDITORIAL OF THE DAY

  • India’s festivals teach us to share our wealth and joy

    India is an aporia in its own true sense.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture