Ministry of Commerce & Industry releases ‘Policy Note’ on PPP & FDI in Railways

Ministry of Commerce & Industry releases ‘Policy Note’ on PPP & FDI in Railways

New Delhi:  Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India yesterday issued a ‘Policy Note’ for private investments in Rail Infrastructure through Domestic and Foreign Direct Investment.

In the Notification issued vide Ref.No.S.O.2113(E), dated 22nd August, 2014, the Government of India has reviewed its policy for private investment in rail infrastructure and amended the list of industries reserved for public sector under Item No.8 of the Schedule-I of the Notification No.S.O.477(E) dated 25 July 1991 which was enected during the then India’s Prime Minister Mr.P.V.Narasimha Rao, who was considered as the prime decision maker for opening up of Private investments in India during crucial 1990s.

Accordingly, the Policy Note allowed FDI in the following activities of the Railway Transport sector:

Suburban Corridor projects through PPP;

High Speed Train projects;

Dedicated Freight lines;

Rolling Stock including train sets, and Locomotives/Coaches manufacturing and maintenance facilities;

Railway Electrification;

Signalling Systems;

Freight Terminals;

Passenger Terminals;

Infrastructure in Industrial Parks pertaining to Railway line/sidings including Electrified Railway lines and connectivities to main railway line and;

Mass Rapid Transport Systems

FDI beyond 49% of the equity of the investee company in sensitive areas from national security point of view, will be brought before the Cabinet Committee on Security (CCS) for consideration on a case to case basis.

The “Revised Position” stands effective from yesterday i.e. 27th August, 2014.

Read full text of the “Press Note” in the attached signed scan copy of the original release here:Railways FDI Policy Note Original