DIPP notified Press Note 8 allowing 100% FDI in Rail infrastructure
Department of Industrial Policy and Promotion (DIPP) under the Union Ministry of Commerce and Industry on 27 August 2014 notified Press Note 8
Department of Industrial Policy and Promotion (DIPP) under the Union Ministry of Commerce and Industry on 27 August 2014 notified Press Note 8. Press Note 8 allows 100 percent Foreign Direct Investment (FDI) through automatic route in rail infrastructure of Indian Railways.
Press Note 8
- FDI is allowed in the construction, operation and maintenance of:
Suburban corridor projects through PPP
Dedicated freight lines
Rolling stock including train sets, locomotives/coaches manufacturing and maintenance facilities
Infrastructure in industrial parks like railway line
Mass Rapid Transport Systems (MRTS)
- FDI will not be allowed in train operations and safety.
- Proposals involving FDI beyond 49 percent in sensitive areas will be placed before the Cabinet Committee on Security for approval by the Railway Ministry on a case-to-case basis.
- Definitions of infrastructure and common facilities have also been widened to include railway line to include railway line/sidings (electrified railway lines and connectiveness to the main railway line).
With the allowance of FDI in Railways, the sectors in which FDI remains prohibited are:
(i) Lottery Business including Government/private lottery, online lotteries, etc
(ii) Gambling and betting including casinos, etc
(iii) Chit funds
(iv) Nidhi company
(v) Trading in Transferable Development Rights (TDRs)
(vi) Real Estate Business or Construction of Farm houses
(vii) Manufacturing of Cigars, cheroots, cigarillos, of tobacco or tobacco substitutes
(viii) Activities sectors not open to private sector investment: (a) Atomic Energy; (b) Railways operation other than in which the FDI is allowed
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