| Date: |
08-12-2014
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| Notification No: |
RBI/2014-15/341 A.P.(DIR Series) Circular No.47
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2014-15/341 |
| Subject: |
Foreign Direct Investment (FDI) in India – Review of FDI policy – Sector Specific conditions- Railway Infrastructure
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RBI/2014-15/341
A.P.(DIR Series) Circular No. 47
December 8, 2014
To
All Category – I Authorised Dealer banks
Madam/Sir,
Foreign Direct Investment (FDI) in India – Review of FDI policy – Sector
Specific conditions- Railway Infrastructure
Attention of Authorised Dealer Category – I (AD Category-I) banks is invited to
Annex A and Annex B of Schedule 1 to the Foreign Exchange Management (Transfer
or Issue of Security by a Person Resident outside India) Regulations, 2000
notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended
from time to time. In terms of Annex A of Schedule 1 to the Notification ibid,
Foreign Direct Investment (FDI) is prohibited in activities / sectors not open
to private sector investment e.g. Atomic Energy and Railway Transport (other
than Mass Rapid Transport Systems).
- The extant Foreign Direct Investment (FDI) policy for railways sector has
since been reviewed. Department of Industrial Policy and Promotion (DIPP) has
now permitted 100% FDI in railway Infrastructure sector under automatic route
subject to conditions. Accordingly, it has been decided to permit FDI in the
following activities of the Railway Transport sector:
“Construction, operation and maintenance of the following: (i) Suburban corridor
projects through PPP, (ii) High speed train projects, (iii) Dedicated freight
lines, (iv) Rolling stock including train sets, and locomotives/coaches
manufacturing and maintenance facilities, (v) Railway Electrification, (vi)
Signaling systems, (vii) Freight terminals, (viii) Passenger terminals, (ix)
Infrastructure in industrial park pertaining to railway line/sidings including
electrified railway lines and connectivities to main railway line and (x) Mass
Rapid Transport Systems. Further, FDI beyond 49 of the equity of the investee
company in sensitive areas from security point of view will be brought before
the Cabinet Committee on Security (CCS) for consideration on a case to case
basis.”
- A copy of Press Note No. 8 (2014 Series) dated August 27, 2014 issued in this
regard by DIPP, Ministry of Commerce & Industry, Government of India is
enclosed.
- Reserve Bank has since amended the Principal Regulations through the Foreign
Exchange Management (Transfer or Issue of Security by a Person Resident outside
India) (Fourteenth Amendment) Regulations, 2014 notified vide
Notification No.
FEMA.320/2014-RB dated September 5, 2014, c.f. G.S.R. No. 800(E) dated November
13, 2014.
- Authorised Dealer banks may bring the contents of this circular to the notice
of their constituents and customers concerned.
- The directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(B.P. Kanungo)
Principal Chief General Manager
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