Cabinet nod for new coach factory at Kolar

The plant will come up at an area of 1118.38 acres land to be provided by the state government.

hidden February 28, 2014 16:29:20 IST
Cabinet nod for new coach factory at Kolar

New Delhi: Catering to the growing demand for modern passenger coaches, the cabinet today gave its approval for setting up a new rail coach manufacturing unit at Kolar in Karnataka to manufacture 500 Linke Holfman Bush (LHB) coaches a year.

The coach factory, expected to foster economic development of the state, will be set up with an estimated cost of Rs 1,460.92 crore with active participation of state government.

Cabinet nod for new coach factory at Kolar

New coach factory coming up in Kolar. Reuters

The factory will be a 50-50 joint venture between the railways and the state, which will bear half of the project cost and also provide land for it free of cost in a first-of-its-kind business participatory model.

The proposal for setting up coach factory at Kolar had been hanging fire for the past three years and finally got a push after Karnataka strongman Mallikarjun Kharge assumed charge of railways last year.

Currently, about 700 LHB coaches are being manufactured in a year and railways have plans to replace all conventional coaches with LHB because of its anti-fire retardant materials and modern design.

All premier trains like Rajdhani, Shatabdi and Duronto are equipped with LHB coaches.

The plant will come up at an area of 1118.38 acres land to be provided by the state government.

PTI

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

Rail Tariff Authority for transparency in fare decision: Kharge
India

Rail Tariff Authority for transparency in fare decision: Kharge

The Authority will not only consider requirements of the Railways but also engage with all stakeholders to usher in a new pricing regime through a transparent process.

Send an SMS to know your train's location
News & Analysis

Send an SMS to know your train's location

Being able to track the location of an oncoming train is every commuter's dream, and a team comprising ...

Railways to introduce surge pricing system for Rajdhani, Duronto and Shatabdi trains
India

Railways to introduce surge pricing system for Rajdhani, Duronto and Shatabdi trains

Passengers travelling by Rajdhani, Shatadbi and Duronto trains will have to shell out between 10 and 50 per cent more under a dynamic surge pricing system to be introduced from 9 September, aimed at raking in Rs 500 crore more during the current financial year.