Lucknow, Oct 12: The proposed rail coach factory in Rae Bareli, the parliamentary constituency of Congress president Sonia Gandhi, was in doldrums after Uttar Pradesh government denied the acquisition of the land as sought by the Railway Ministry.
Ms Gandhi was supposed to lay the foundation stone of the Rs 1,000 cr rail coach factory under Public Private Partnership (PPP) in Lalganj area of Rae Bareli on October 14.
According to government sources, Railway Ministry had sought 170 hectares of land in Lalganj area for the proposed factory and had even paid the compensation amount in July 2008.
However, the government had to shun the proposal, following protest by the farmers over acquisition of the land.
Meanwhile, Congress state president Rita Bahuguna Joshi criticised the government's move and termed it a mere 'political vendetta'.