Commerce and Industry Minister Anand Sharma today exuded confidence that the Cabinet will soon take a view on liberalising FDI policy in railways sector.

"All the concerned stakeholders including the Railways Ministry are on board. I hope this will happen soon," Sharma told reporters.

The Department of Industrial Policy and Promotion (DIP

) has proposed to allow 100 per cent Foreign Direct Investment (FDI) in high speed train systems, suburban corridors, high speed tracks and freight lines connecting ports and mines.

However, existing passenger and freight network operations will not be opened to foreign investors.

At present, there is a complete ban on any kind of FDI in the railways sector except mass rapid transport systems.

As per the proposal, foreign companies would be allowed to pick up 100 per cent stake in the special purpose vehicle that will construct and maintain rail lines connecting ports, mines and industrial hubs with the existing rail network.

However, the Home Ministry and the Department of Economic Affairs have sounded a note of caution on the proposal, citing security concerns, especially with regard to investments from China in this sensitive sector.

In its comment on the proposal of the DIPP, according to sources, the Home Ministry has said that Chinese investments in such a sensitive sector should be viewed with caution.

Sharma also expressed hope that the Cabinet would soon take up view of relaxing FDI norms in construction sector.
The DIPP has proposed easy conditions for exit for developers before the three-year lock-in period among other changes.

Commerce and Industry Minister Anand Sharma said today the cabinet soon to liberalize FDI policy on railway sector will take a view that confidence yet. "All relevant stakeholders including railways are on board. I hope it will happen soon, "Sharma told reporters. Department of industrial policy and promotion (DIPP) has proposed to allow 100 percent foreign direct investment's high-speed rail system, the high speed tracks and suburban corridors, ports and freight lines linking mines (FDI). However, the current operation of passenger and freight network will be opened to foreign investors. Currently, the mass rapid transport system in railway sector excluding foreign direct investment on any kind of full bans. According to the proposal, foreign companies with existing rail networks, ports, mines and industrial centers to build and maintain rail lines that special purpose vehicle will be allowed to take 100 per cent. However, the Home Office and the Department of Economic Affairs, especially in this sensitive area in China in connection with the investments, citing safety concerns, offer a note of caution. In his comments on the DIPP's proposal, according to sources in the Ministry of Home Affairs in this sensitive area should be viewed with caution that Chinese investment. Sharma cabinet construction soon relaxes FDI norms will take the hoped. DIPP other changes among the three-year lock-in period before developers easy exit conditions.