INDIA: Revisions to India foreign direct investment rules on investment in railways

Thursday August 28 2014

The Department of Industrial Policy and Promotion has published revisions to the Consolidated FDI Policy in relation to India foreign investment in railways.

Under the previous rules, foreign investment was not permitted in railways other than in mass rapid transport systems.

Under the revisions, up to 100% foreign direct investment under the automatic route will be permitted in railway infrastructure. This will extend to construction, operation and maintenance of the following:

(i) Suburban corridor projects through PPP;
(ii) High speed train projects;
(iii) Dedicated freight lines;
(iv) Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities;
(v) Railway electrification;
(vi) Signalling systems;
(vii) Freight terminals;
(viii) Passenger terminals;
(ix) Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivities to main railway line; and
(x) Mass rapid transport systems

FDI proposals beyond 49% in sensitive areas from a security perspective will be brought before the Cabinet Committee on Security for consideration on a case-by-case basis.

Click on the above link for the press release.