Investment in Railways is being stepped up by partnership with the private sector. Public Private Partnership (PPP) projects related to rolling stock manufacturing units, modernisation of railway stations, multi-functional complexes, logistics parks, private freight terminal, freight train operations, liberalised wagon investment schemes, and Dedicated Freight Corridors are in the pipeline and offer excellent opportunities for private investment in the 12th Plan.

Apart from attracting private investments from domestic investors in rail sector, a proposal is under consideration of the Government to enable Foreign Direct Investment (FDI) to foster creation of world class rail infrastructure.

Rail Land Development Authority was set a challenging target of raising Rs1,000 crore in the Budget 2013-14 and they are on course and have already raised Rs937 crore so far.

Public private partnership expansion enabling private and foreign investment in railway infrastructure and land monetisation. Public private partnership arrangements are being advanced to mobilise private capital for railway infrastructure development, including rolling stock manufacturing, station modernisation, multi functional complexes, logistics parks, private freight terminals, liberalised wagon investment schemes and Dedicated Freight Corridors. A proposal to permit foreign direct investment in the rail sector is under consideration to supplement domestic funding, and land monetisation through the Rail Land Development Authority is being pursued to raise resources for rail projects.