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Investment allowed only in Railway infrastructure, says Ministry

Written by: Staff
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New Delhi, Oct 25 (UNI) The Railways Ministry today clarified that Indian Railways have so far allowed only infrastructure- related investment in the sector, in keeping with the country's policy.

The fact is that only Railway Transport is reserved for public sector under the Industrial Policy, it said.

Rail Transport is defined as operation of freight and passenger trains, and does not include ownership of track, rolling stock and any other infrastructure related to a railway system.

The Ministry's clarifaction came in reposnse to a news item regarding private investment in the Railways carried by a section of newspapers, which it said contained large factual inaccuracies.

The permitted investment in container business is only to the extent of ownership of rolling stock and provision of container services, as distinct from operation of such trains, which will be carried out by the Railways.

Similarly, the investment proposed in Haridas-Paradeep Railway line is also in the nature of infrastructure investment, expressly permitted under the extant policy.

''In fact, this view has been corroborated by the Ministry of Commerce and Industry, as recently as in October, '' the Ministry said, pointing out that FDI up to 100 per cent is permitted under the automatic route in railway infrastructure as long as trains operations are not involved.

UNI NAZ KD HT1915

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