Railway related stocks such as Kalindee, Texmaco Rail, Kernex rallied up to 14 per cent in intraday trade on Thursday, after the government notified liberalised 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/sidings.
However, proposals involving FDI beyond 49 per cent in sensitive areas, from security point of view, will be placed before the Cabinet Committee on Security (CCS) for approval by the Railway Ministry on a case-to-case basis, said a press note of the Department of Industrial Policy and Promotion (DIPP).
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