Committee to identify Railway projects for FDI

Committee to identify Railway projects for FDI

New Delhi:  In a move signalling fast-tracking of Foreign Direct Investment (FDI), the Railways has constituted a committee to “identify potential areas/projects” that need investment.

The committee consists of executive directors of traffic, civil/ infra, finance, mechanical engineering, signalling and electrical engineering departments, for which the railways is likely to get investments. It would be headquartered in New Delhi.

The cabinet allowed 100 per cent FDI in infrastructure projects and has been desperately eyeing investments in bullet trains and high-speed freight corridors. It has signed MoUs with China and Japan for such investments.

The committee will interact with industries and potential investors to explore areas that interest them.

“The committee should interact with industry/Chamber of Commerce and potential investors, if required,” the order from Railway Board said.

“The Public Private Partnership model adopted earlier has not been encouraging as foreign investments were not allowed,” a high level railway official said.

The ministry finds resistance to 100 per cent FDI from All India Railwaymen’s Federation which says the government has allowed investments in all sectors and their decision is “unilateral”.