No FDI in railway's core areas: D.V. Sadananda Gowda

5 Dariya News

Bangalore 10-Oct-2014

Reassuring the workforce that foreign capital will not be allowed in main business areas of the railways, union minister D.V. Sadananda Gowda said Friday that there are no plans to privatise its core activities."Permitting FDI will facilitate foreign investors to compete for such mega projects, either on their own or by joining hands with domestic investors. This in no way leads to privatization of existing Indian Railways network or its core activities," Gowda said while inaugurating the 59th annual railway national awards function here.

"At the cost of repetition, it is made clear that the existing Indian Railways network, its operations and its core activities will remain with the Indian Railways only and not open for privatisation."On Aug 6, the government approved a proposal to allow 100 percent foreign direct investment (FDI) for building railways infrastructure.

Foreign capital in railways was not allowed till August.The new government led by Prime Minister Narendra Modi has been pushing for it to build infrastructure projects such as high-speed railways and railway lines to and from coal mines and ports.The proposal had sought to allow FDI participation in erecting projects relating to electrification, high-speed tracks and suburban corridors.Last-mile connectivity to boost business activity in and around ports and mines has been proposed through formation of special purpose vehicle (SPV) companies under the public private partnership (PPP) model.