The Hindu Business Line : `Pvt investment, FDI allowed in rail-related infrastructure'

The Railways on Wednesday made it clear that the Government policy allows private sector investment and ownership in rail track, rolling stock, container depots and any other infrastructure related to a railway system, which are not train operations. Policy bars private sector entry in train operations only.

Foreign direct investment (FDI) of up to 100 per cent is permitted under the automatic route in railway infrastructure as long as train operations are not involved, according to an official statement issued here today. This view has been corroborated by the Ministry of Commerce and Industry, as recently as in October.

The Railways has so far allowed only infrastructure related investment in rail sector, which is consistent with the Government of India's policy, it said. Only railway transport is reserved for public sector under the Industrial Policy.

Rail transport is defined as operation of freight and passenger trains, and does not include ownership of track, rolling stock and any other infrastructure related to a railway system.

The statement added that investment in container business permitted by the Railways is only to the extent of ownership of rolling stock and provision of container services.

Operation of such trains will be carried out by the Indian Railways. Similarly, 100 per cent FDI is allowed in rail track construction.

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