Rail Budget 2014: Rail stocks surge upto 5% as media report suggests govt planning to allow 100% FDI

MUMBAI: Shares of railways related companies gained momentum in trade following reports that the government is considering to allow 100 per cent foreign direct investment in railways to upgrade infrastructure for freight and high-speed trains.

“The commerce and industry ministry has initiated the exercise to allow 100 per cent FDI in several segments of railways, moving beyond its earlier plan to open select sectors such as high-speed train systems, dedicated freight lines built through the public-private partnership route and in certain areas of suburban rail networks,” said TOI report.

Currently, there is a complete ban on any kind of FDI in railways, except mass rapid transport systems.

High-speed trains and dedicated corridors are top agenda items for the BJP government and the intention to upgrade infrastructure was officially announced by president Pranab Mukherjee in his address to the joint sitting of both Houses of Parliament.

The Railway Budget may be presented on July 9, say reports.

At 11:15 a.m.; Titagarh Wagons was up 3.58 per cent, Kalindee Rail Nirman moved 4.69 per cent higher, CEBBCO surged 4.7 per cent, Kernex Microsystems gained 1.25 per cent and Texmaco Rail & Engineering inched up 1.39 per cent.