The Government has notified the liberalized FDI norms for the Railways, permitting 100 per cent Foreign Direct Investment through automatic route in several areas, including high speed trains.

Other segments of the Railways in which FDI will be allowed include suburban corridor projects through Public Private Partnership (PPP), dedicated freight lines, rolling stock including train sets, locomotives/coaches manufacturing and maintenance facilities, railway electrification, signalling systems, freight terminals, passenger terminals and infrastructure in industrial parks like railway line.

A Department of Industrial Policy and Promotion release, however, said that proposals involving FDI beyond 49 per cent in sensitive areas will be placed before the Cabinet Committee on Security for approval by the Railway Ministry on a case-to-case basis.

Definitions of “infrastructure” and “common facilities” have also been widened to include railway line.

The FDI liberalization in the sector will help in modernization and expansion of railway projects.

However, FDI will not be allowed in train operations and safety.