New Delhi, Feb 26 : A new railway coach factory is to be set up in Kerala and a new wagon reconstruction unit at Garkha in Chapra District of Bihar.
The Kerala Government has made available 1000 acres of land for the factory. The decision follows the steady increase in the demand for metro coaches.
Announcing a decision to this effect, Railway Minister Lalu Prasad Yadav said last year the Ministry had decided to set up a new coach factory at Rae Bareilly.
Coach supply orders have been received from Malaysia, Philippines, Vietnam, Sri Lanka, Bangladesh, Tanzania, Mayanmar, Angola, Senegal and Male during last few years.
The reconstruction unit would cost Rs. 40 crore for reconstruction of old wagons. This follows growing need for wagon maintenance and reconstruction.
He also proposed modernisation of Lilluah Workshop in West Bengal, Perambur Loco Workshop and Ajmer Loco Workshop at a cost of about Rs. 200 crore. Jamalpur Workshop would also be modernised at a cost of Rs. 82 crore to enable its development like a production unit.