"I will pay for the 1000 acre of land," Banerjee said on Tata Motors' chairman Ratan Tata's recent statement that the Tatas were prepared to return the land at Singur if government compensated for the investment made.
Banerjee said she had already held talks with Finance Minister Pranab Mukherjee and a railway coach factory would come up on 600 acre and the remaining 400 acre would be returned to farmers who had been unwilling to part with it.
"While the Railways' equity will be the land, the private operator's equity will be funds," Banerjee told a Bengali TV news channel.
She said that land may have to be acquired for laying tracks for new projects like the freight corridor from Ludhiana in Punjab to Dankuni in West Bengal.
"I know they (CPI-M) will create problems, but I will deal with it accordingly," she said.