India is close to inviting foreign companies to invest in its outdated rail network.

Information obtained by Reuters suggests that the move could be worth up to $10 billion  (£6.08 billion) over the next five years and is aimed at correcting years of decline, which have resulted in a slow service and a high rate of accidents. 

Any foreign investment would be confined solely to new developments, meaning all existing passenger and freight operations would remain in the hands of the government. The scheme would however allow for complete ownership of key new areas such as connections to ports, mines and power installations.

An official at the Department of Industrial Policy & Promotion said: “The plan is to allow 100 per cent foreign direct investment in suburban corridors, high-speed train systems, freight line projects implemented through public-private partnership.”

India currently has the world’s fourth longest railway system, which transports around 25 million passengers each day.