(News) In Future Govt Can Permit FDI in Railway
Government May Soon Permit FGI in Railway Sector
The government is likely to allow FDI in the cash-starved railways sector, particularly for development of rail lines between project sites and existing network, a top government official said.
At present, there is a complete ban on any kind of foreign direct investment (FDI) in the railways sector. To allow FDI in the sector, the government needs to remove it from the list of prohibited sectors under the current policy.
As per the proposal of the Department of Industrial Policy and Promotion (DIPP), foreign companies would be allowed to pick up 100 percent stake in the special purpose vehicle (SPV) that will construct and maintain rail lines connecting ports, mines and industrial hubs with the existing rail network.
"It will be first-to-last mile connectivity between ports and things like coal mines to the existing railway freight stations," a top government official said.
First-to-last mile connectivity would mean smooth movement of raw materials from mines to ports.
The DIPP, which deals with FDI-related matters, has completed consultations with the concerned ministries on the proposal.
"The DIPP will soon seek Cabinet nod for the proposal. They have proposed to permit 100 percent FDI under automatic route in such projects," the official said.
Read More..
Courtesy : ZEE News