Home Ministry, DEA cite security concerns on rail FDI proposal

Tags: News
With the government considering relaxing the FDI policy for railways, the Home Ministry and the Department of Economic Affairs have sounded a note of caution, citing "security" concerns, especially with regard to investments from China in this sensitive sector.

In its comment on the proposal of the Department of Industrial Policy and Promotion (DIPP), the Home Ministry said Chinese investments in such a sensitive sector should be viewed with caution, sources said.

The Home Ministry, they said, has pointed out that China is India's main rival on the economic and military fronts, with unresolved border disputes between the two nations.

On account of this, sources said, investments from the neighbouring country in this core sector may pose a danger to national security and should be viewed with caution.

The ministry clearly stated that Chinese investments should not be allowed in border areas such as Jammu & Kashmir, the North East and Sikkim.

It suggested the DIPP and the Ministry of Railways set up a core group with technical and security experts to evaluate proposals in the sector.

The Department of Economic Affairs (DEA) has stated that the railway ministry should keep in mind the strategic and security sensitivity of remote locations while framing specific projects in those areas, they added.

The DIPP has circulated a final note for consideration of the Cabinet for allowing foreign direct investment in suburban corridors, high-speed tracks and freight lines connecting ports, mines and power installations. The proposal will be taken up by the Cabinet soon.

However, existing passenger and freight network operations will not be opened to foreign investors.


  • Listing of exchanges, shareholder right will boost market fundamentals

    Capital market regulator Securities and Exchanges Board of India (Sebi) announced a milestone change in the Indian capital market at its Monday board


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Arun Kumar Jain

India in a new age work order

There are three broad categories of people in the world ...

Rajgopal Nidamboor

The balancing act of nature

It’s a fact of modern life that you and I ...

Dharmendra Khandal

For a lark, let's do something serious finally

It’s a sight to behold. As you drive through a ...


William D. Green

Chairman & CEO, Accenture