<p>The Home Ministry has raised objections in allowing foreign direct investment in highly- sensitive areas of the Railways sector, saying such a move may compromise security of the country's largest transportation network.<br /><br /></p>.<p>The objection came after the Commerce and Industry Ministry circulated a draft cabinet note for inter-ministerial consultations proposing 100 per cent FDI in areas such as high-speed train systems and dedicated freight lines.<br /><br />"There should not be FDI in highly sensitive parts of the railways," a Home Ministry official told PTI.<br /><br />Managing passenger and freight traffic and operations of trains are considered to be the most sensitive parts of the Indian Railways.<br /><br />The proposal was mooted by the Department of Industrial Policy and Promotion (DIPP) under the Commerce and Industry Ministry.<br /><br />The department believes that permitting foreign investment in the cash-starved Railways would help in growth of the sector.<br /><br />Railway is a critical sector for driving India's economic growth and it has the potential to raise GDP by over one per cent.<br /><br />Besides high-speed train systems and dedicated freight lines, there is also a proposal to allow foreign investment in sub-urban corridors and freight lines connecting ports, mines and power installations.<br /><br />According to sources, an urgent need was felt to modernise, strengthen and expand the Indian railway network which would require very large capital investments. At present, there is a complete ban on any kind of FDI in the Railways sector except mass rapid transport systems.<br /><br />In its election manifesto, the BJP has committed to modernise and upgrade the Railways and launch Diamond Quadrilateral project of high-speed train network.<br /><br />The UPA government had also tried to relax FDI norms in Railways but could not push the proposal because of the general elections.</p>
<p>The Home Ministry has raised objections in allowing foreign direct investment in highly- sensitive areas of the Railways sector, saying such a move may compromise security of the country's largest transportation network.<br /><br /></p>.<p>The objection came after the Commerce and Industry Ministry circulated a draft cabinet note for inter-ministerial consultations proposing 100 per cent FDI in areas such as high-speed train systems and dedicated freight lines.<br /><br />"There should not be FDI in highly sensitive parts of the railways," a Home Ministry official told PTI.<br /><br />Managing passenger and freight traffic and operations of trains are considered to be the most sensitive parts of the Indian Railways.<br /><br />The proposal was mooted by the Department of Industrial Policy and Promotion (DIPP) under the Commerce and Industry Ministry.<br /><br />The department believes that permitting foreign investment in the cash-starved Railways would help in growth of the sector.<br /><br />Railway is a critical sector for driving India's economic growth and it has the potential to raise GDP by over one per cent.<br /><br />Besides high-speed train systems and dedicated freight lines, there is also a proposal to allow foreign investment in sub-urban corridors and freight lines connecting ports, mines and power installations.<br /><br />According to sources, an urgent need was felt to modernise, strengthen and expand the Indian railway network which would require very large capital investments. At present, there is a complete ban on any kind of FDI in the Railways sector except mass rapid transport systems.<br /><br />In its election manifesto, the BJP has committed to modernise and upgrade the Railways and launch Diamond Quadrilateral project of high-speed train network.<br /><br />The UPA government had also tried to relax FDI norms in Railways but could not push the proposal because of the general elections.</p>