In a statement on Thursday, the EU executive said the scheme complies with EU state aid rules and is designed "to remove technical barriers to rail interoperability and to improve the security and efficiency of rail transport."
The plan will support the installation of the European Rail Traffic Management System (ERTMS) on newly built or modernised railway vehicles in Poland.
ERTMS is a unified European railway management and safety control system intended to replace the various national systems now in use across the continent.
The aid will take the form of direct grants and will benefit railway companies operating in freight and passenger transport, as well as rolling stock leasing firms.
The announcement comes amid protests by Polish railway workers, who argue that government policies disproportionately favour road transport.
Rail unions are calling for increased public investment in state rail freight carrier PKP Cargo, lower infrastructure access costs and a comprehensive national rail development strategy.
(gs)
Source: PAP, ec.europa.eu