Union Cabinet clears Rail Coach Unit at Kolar

Kolar (KQZ): Union Cabinet has approved the proposal of Ministry of Railways to set up a new rail coach manufacturing unit at Kolar, Karnataka.

The rail unit will manufacture 500 coaches per annum at an estimated cost of Rs 1,460.92 crore, excluding the cost of land and Karnataka government is also to actively participate in the project. Land to the extent of about 1118.38 acres shall be provided free of cost by the Government of Karnataka.The proposed plant shall help Indian Railways in ensuring timely availability of passenger coaches to meet the increasing demands of passenger transportation.

According to Union MSME Minister KH Muniyappa, the Ministry of Railways will finance 50 per cent of the cost and Government of Karnataka shall provide required land, free of cost as well as meet balance 50 per cent of the project completion cost, with escalation.