Foreign Direct Investment In Railways Sector

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Till 22nd August, 2014, Foreign Direct Investment (FDI) in Railway Sector was restricted only to “Mass Rapid Transport System”. However, FDI has now been opened up/permitted in the following activities/areas of Railway Infrastructure (100% on automatic route) under the extant FDI Policy of Government since 22 August, 2014 :-

“Construction, Operation and Maintenance of :-

  1. Suburban corridors projects through PPP;
  2. High Speed Train Projects;
  3. Dedicated Freight Lines;
  4. Rolling Stock including train sets and locomotives/coaches manufacturing and maintenance facilities;
  5. Railway Electrification;
  6. Signaling systems;
  7. Freight terminals;
  8. Passenger terminals;
  9. Infrastructure in industrial park pertaining to railway line/ sidings including electrified railway lines and connectivities to main railway line; and
  10. Mass Rapid Transport Systems”

As per the figure compiled by Department of Promotion of Industry and Internal Trade (DPIIT) the total FDI received in Railway sector till December, 2019 is approx. 1071 million US dollars.

Additional capital investment including from FDI for augmentation modernization of Railway’s infrastructure helps to achieve the goal of Railway safety.

A few representations have been received from Railway Unions regarding FDI. It has been clarified that there are inbuilt safeguards to protect interest of the existing employees of Railways.

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