FDI in Railway Sector

Ministry of Railways issued Sectoral guidelines in November, 2014 for Domestic/Foreign Direct Investment (FDI) in rail sector in the following identified areas: (i) Suburban corridors through Public Private Partnership (PPP); (ii) High speed train projects; (iii) Dedicated freight lines; (iv) Rolling stock including trains sets and locomotive/coaches manufacturing 

and maintenance facilities; (v) Railway electrification; (vi) Signaling system; (vii) Freight terminals; (viii) Passenger terminals; (ix) Testing facilities and laboratories; (x) Non- Conventional Sources of Energy; (xi) Railway Technical Training Institutes; (xii) Concessioning of standalone passenger corridors (branch lines, hill railways etc.); (xiii) Mechanized Laundry; (xiv) Rolling stock procurement; (xv) Bio-toilets; (xvi) Technological solutions for manned and unmanned level crossings; (xvii) Technological solutions to improve Safety and reduce accidents. 

(c): The FDI policy aims at benefiting domestic industries through infusion of foreign equity and technology. 

(d): It is not possible to anticipate the extent of FDI inflows. However, agreements have been signed for setting up of two locomotive factories at Madhepura (Electric) and Marhowra (Diesel) costing about ₹ 2600 crore entailing FDI inflow in these activities.