In the Foreign Direct Investment (FDI) policy effective from 28.08.2017, FDI in following activities of Railway Infrastructure sector has been allowed on automatic route :-

 (i)     Suburban corridor projects through PPP,

 (ii)    High speed train project;

 (iii)   Dedicated freight lines;

 (iv)  Rolling stock including train sets and locomotives/coaches manufacturing and maintenance facilities;

 (v)    Railway Electrification;

 (vi)   Signalling systems;

 (vii)  Passenger terminals;

 (ix) Infrastructure in industrial part pertaining to railway line/sidings including electrified railway lines and connectivities to main railway line; and

 (x)    Mass Rapid Transport Systems.

There is no proposal to privatise any area of operation of Railways. However, Public Private Partnerships and out-sourcing of certain facilities like cleaning, pay and use toilets, retiring rooms, parking etc. is done on need based manner to improve efficiency.

This information was given by the Minister of State of Railways Shri Rajen Gohain in a written reply to a question in Rajya Sabha today.

Foreign Direct Investment in rail infrastructure permitted on automatic route, enabling PPPs and targeted modernization measures. The policy permits Foreign Direct Investment (FDI) on the automatic route in specified railway infrastructure activities: suburban corridor projects via public private partnership, high speed train projects, dedicated freight lines, rolling stock manufacturing and maintenance, railway electrification, signalling systems, passenger terminals, industrial infrastructure connected to rail lines, and mass rapid transit systems; it also states that these permissions do not constitute privatisation and that PPPs and outsourcing for certain non core services are allowed on a need basis to improve efficiency.