Cabinet Nod to FDI in Defence, Railway Infrastructure
Moving ahead with the economic reforms, the Cabinet tonight cleared the long-delayed proposal for raising FDI limit in defence to 49 per cent and fully opened up the railway infrastructure segment, like high-speed trains, for foreign investment.
The decisions taken at the Cabinet meeting headed by Prime Minister Narendra Modi here came barely two weeks after the one to raise the cap of FDI in insurance sector from 26 per cent to 49 per cent.
FDI ceiling in the sensitive defence sector has been hiked to 49 per cent from current 26 per cent, with the condition that of the control in joint venture manufacturing defence equipment will remain Indian hands.
The move is aimed at boosting domestic industry of a country which imports up to 70 per cent of its military hardware.
The proposal had been pending for several years as it was first mooted by the Commerce Ministry during the previos UPA government. However, the then Defence Minister A K Antony had blocked it, citing national security concerns.
The NDA government has been arguing that the FDI limit needs to be hiked in defence to help expand the domestic industrial base in the sector.
The Cabinet also approved a proposal to open up cash-strapped railways to foreign investment by allowing 100 per cent FDI in areas such as high-speed train systems, suburban corridors and dedicated freight line projects implemented in PPP mode.
The FDI liberalisation in the sector would help in modernisation and expansion of the railway projects. However, FDI will not be allowed in train operations and safety.
According to estimates, the sector is facing a cash crunch of around Rs 29,000 crore and allowing of FDI will help mop up resources.
The FDI liberalisation in the sector is expected to help in modernisation and expansion of the railways.
At present, there is a ban on any kind of FDI in railways sector except mass rapid transport systems. The move will also help in development of its infrastructure for industrial purposes.
With the FDI nod, the proposed Mumbai-Ahmedabad high speed rail corridor is expected to get a push. The construction of exclusive rail corridor for freight movement is also likely to be boosted.
However, FDI is not allowed in train operations and safety.
The FDI proposal for railways was pending for some time with the Home Ministry resisting it, citing concerns with regard to rail infrastructure in border areas.
Finance Minister Arun Jaitley had in his budget speech for 2014-15 announced plans to increase FDI in defence sector while Railways Minister D V Sadananda Gowda had mentioned opening up of cash-starved railways for foreign investment.
The Cabinet also cleared a proposal to set up Mahatma Gandhi Central University in Motihari in Bihar.
FROM OUTLOOKRailwaysLack of funds, poor planning, fare disparity Nitish Kumar wants to rid the Railways of its ills...more from outlook>>>
FROM THE WEBOpinion"Littering says a lot about you" had read billboarmore from WEB>>>
FROM WIRESKolkata, July 23 (PTI) Union Minister of State formore from WIRES>>>
- Indian Origin Punjabi Bus Driver Burnt to Death in Australia
- SC Dismisses Petition, Says Armed Forces Answerable To Government
- Fifteen Pakistan Rangers Killed In BSF's Retaliatory Fire In The Past Week
- Judges Selection: SC Slams Centre for Bringing Courts to a Grinding Halt
- US Charges 61 People in Multi-Million Dollar Indian Call Center Scam
- Pak Violates Ceasefire Along LoC in Jammu, Rajouri, Kathua, Girl Injured
- Daily Curator: While India Plays Spy-Spy With Pakistan, China Issues Gentle Reminder
- Watch: Donald Trump Pulls Out All The Stops With 'Ab Ki Baar, Trump Sarkar'
- Daily Curator: What Happens In Family May Not Stay So
- Neeraj Pandey's Ouch Takes on the Complexities of a Relationship
- Watch: Svetlana Kuznetsova Snips Her Hair And Bosses The Match
- Daily Curator: After Board Says Tata to Cyrus, Bombay HC May Have a Case to Hear
- India Third in Terror Deaths After ISIS-Boko Haram Areas: SC Told
- War No Option, Pak Should Take Initiative for Peace: Mehbooba
- Pak Army Says No Soldiers Killed in Firing at Border
- DND Flyway onnecting Noida to Delhi to Remain Toll Free: SC
- Swamy Asks PM to Form Multi-Agency SIT to Probe Tatas
- Northern Ireland Rejects Brexit Court Challenge
- MOST VIEWED
- MOST COMMENTED