Railway shares surge on hopes of new FDI opportunities
Shares gain on news reports that Indian Railways has formed a panel to identify projects for foreign direct investment
Mumbai: Shares of companies in the railways business rose on Thursday after news reports said the Indian Railways has formed a panel to identify projects for foreign direct investment (FDI).
The panel will submit its report in three weeks, news channel CNBC-TV18 reported.
Titagarh Wagons Ltd rose 2.24% to ₹ 234.75, Texmaco Rail and Engineering Ltd gained 2.01% to ₹ 93.85, Kernex Microsystems India Ltd advanced 4.95% to ₹ 58.25, Stone India Ltd climbed 1.55% to ₹ 1,284.75, Gateway Distriparks Ltd added 1.47% to ₹ 252, Container Corp. of India Ltd surged 1.55% to ₹ 1,284 and Kalindee Rail Nirman (Engineers) Ltd gained 3.30% to ₹ 98.65.
In August, the government notified foreign investment norms in railway infrastructure, allowing 100% investment through automatic route in several areas.
Further, FDI proposals above 49% will have to seek the approval of the cabinet committee on security on “case-to-case basis, wherever it is likely to result in access to modern and state of the art technology in the country," according to the press note released by the department of industrial policy and promotion.
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