Rail stocks surge up to 14 per cent as government notifies FDI norms

Mumbai: Rail stocks gained as much as 14.3 per cent after the government notified liberalised FDI norms for the sector, permitting 100 per cent foreign direct investment through automatic route in several areas, including high-speed trains. Shares of Texmaco Rail & Engineering surged 14.26 per cent, while Titagarh Wagons jumped 5 per cent and Container Corporation of India gained 5.8 per cent on the BSE.

Among others, Kalindee Rail Nirman Engineers rose by 4.96 per cent and Stone India was up 4.99 per cent. As per the notification yesterday, segments of the Railways in which FDI will be allowed include suburban corridor projects through Public-Private-Partnership, dedicated freight lines, rolling stock including train sets, locomotives/coaches manufacturing and maintenance facilities, railway electrification, signalling systems, freight terminals, passenger terminals and infrastructure in industrial parks like railway line/sidings.

However, proposals involving FDI beyond 49 per cent in sensitive areas, from security point of view, will be placed before the Cabinet Committee on Security (CCS) for approval by the Railway Ministry on a case-to-case basis, said a press note of the Department of Industrial Policy and Promotion.