Noting that the amendments to ease FDI inflows in key sectors like defence, mining, environment and railway infrastructure sectors from 29 per cent to 49 per cent will help attract more investments and create jobs, industry bodies on Thursday said it would create a conducive atmosphere for investment inflows into the country.
BCIC President A N Chandramouli, said, “Some of the recommendations like allowing 100 per cent FDI in operations like freight corridor, high-speed train, port and mining connectivity projects through different modes and new projects like gauge conversion, construction and doubling of new lines and maintenance projects under the public-private partnership model will not only modernise Indian railways but also expand into new railway networks.”
BCIC Senior Vice President Anuj Sharma said that the Cabinet’s move to allow 49 per cent in defence sector is expected to create a more indigenised defence manufacturing ecosystem and new jobs.
“A couple of joint venture formations where tenders are already in the pipeline will get the necessary impetus, which in turn, will push these projects on steam,” Sharma said.
The Federation of Indian Chambers of Commerce and Industry (FICCI) also welcomed the government’s decision to allow 100 per cent foreign direct investment (FDI) in railway infrastructure.
High speed trains
“This overdue measure will help railways in mobilising investments required for introducing high speed trains, suburban corridors and dedicated freight line projects,” FICCI president Sidharth Birla said.
“It has happened at a time when the existing rail network and Indian Railways need funds to modernise and expand capacity to serve fast-growing needs of the economy,” he said. Foreign capital was not allowed into the railways till now.
The Narendra Modi government is keen to build infrastructure projects in the railways.
