FICCI welcomes 100 percent FDI in railways

New Delhi, Aug 7 (IANS) The Federation of Indian Chambers of Commerce and Industry (FICCI) on Thursday welcomed the government’s decision to allow 100 percent foreign direct investment (FDI) in railway infrastructure.

"This overdue measure will help railways in mobilizing 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 modernize and expand capacity to serve fast-growing needs of the economy," he said in a statement.

Foreign capital was not allowed into the railways till now.

The Narendra Modi government is keen to build infrastructure projects in the railways.

Officials say this is not possible without private participation. Chinese and Japanese firms are said to be keen to help build rail infrastructure.