Government likely to permit FDI in Railways soon

New Delhi: 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. To allow FDI in the sector, the government needs to remove it from the list of prohibited sectors under the current policy.

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.

Industrial development and exports have been suffering on account of poor infrastructure which hampers output and raises the cost of production. Railways can play a role in providing a reliable transport facility necessary for promoting industrial growth.
Players setting up sea ports and large mines need efficient railway connectivity. The Railway Ministry’s effort towards attracting funds through public–private partnership for infrastructure projects have failed to gather steam.
Minister of State for Railways Kotla Jaya Surya Prakash Reddy, in a written response to the Rajya Sabha has said that loss incurred by the Railways in the passenger segment is likely to touch Rs 25,000 crore this year.
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