New Delhi: The Modi government is planning to allow foreign direct investment (FDI) into railways to finance its ambitious plans to modernise the sector. At present, there is a complete ban on any kind of FDI in railways except mass rapid transport systems.
Railways minister D V Sadananda Gowda said the government is short of resources and some resource mobilisation should be taken as a priority.
“I want to have discussion with commerce minister Nirmala Seethraman, who has asked me to come up with proposals… I think in 3-4 days we will come to a conclusion,” said Gowda.
Modernisation and revamping of railways is the top infrastructure agenda of the government, which wants to build a Diamond Quadrilateral project of high-speed trains and a network of freight corridors over the next few years. These projects require very large capital investments.
Besides high-speed train systems and dedicated freight lines, there is also a proposal to allow foreign investment in sub-urban corridors and freight lines connecting ports, mines and power installations. However, existing passenger and freight network operations will not be opened to foreign investors, the sources said.
The move to liberalise investment in railways comes after a similar decision was taken to allow 100 per cent FDI in the defence sector.
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