Government in August, 2014 had permitted 100% Foreign Direct Investment (FDI) in construction, operation and maintenance in certain identified areas in the Rail sectors.

The objectives of FDI policy are: modernisation and strengthening of rail network and development of rail-related industries through infusion of foreign equity and technology leading to growth in manufacturing and enhancing competitiveness.

Areas identified for FDI are not in conflict with management and operations of the existing network of Indian Railways which continues to be with Government of India.

(e): Ministry of Railways issued Sectoral guidelines in November, 2014 for Domestic/Foreign Direct Investment (FDI) in rail sector in certain identified areas.

This Press Release is based on information given by the Minister of State (Independent Charge) of the Ministry of Communications and Minister of State for Railways in a written reply to a question in Lok Sabha on 20.07.2016 (Wednesday).

Foreign direct investment in railways authorised for identified non operational areas to modernise network and attract technology. Foreign direct investment is authorised in specified non-operational segments of the rail sector to support modernisation, technology infusion, manufacturing growth and competitiveness. The policy permits foreign equity participation in construction, operation and maintenance in identified areas that do not affect management or operational control of the national railway network, which remains with the Government, pursuant to sectoral guidelines issued by the Ministry of Railways.