A rail coach refurbishing and rehabilitation factory would be set up in the Industrial Estate of Barhi in Sonepat district at a cost of about Rs 600 crore.
It would provide job opportunities to hundreds of youth, besides kicking off economic development through ancillarisation, Managing Director, HSIIDC, Raja Sekhar Vundru said here today.
With Chief Minister Manohar Lal Khattar having already approved a proposal to this effect, a Memorandum of Understanding would soon be signed between the Ministry of Railways and the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), he said.
Vundru said the Corporation had agreed 'in-principle' to allot 161.48 acres of land on leasehold basis to the Ministry of Railways for setting up the project.
During the 'Happening Haryana Global Investors' Summit' in 2016, the Railways Minister had announced that such unit would be set up in Sonepat district.
"As a follow-up to the announcement, the Ministry of Railways was asked to send a formal communication for initiating action in the matter. Following that a proposal has been received from the Railways for setting up the factory," Vundru said.
The project would refurbish 500 to 700 coaches every year.
The HSIIDC will allott land on long-term lease basis with lease rental to be fixed at the rate of Rs 1,000 per acre per year. The lease period would initially be for 30 years which can be extended by another 30 years based on mutual consent.
"The project is expected to provide stimulus to lot of ancillary units, small and medium enterprises and hence would create a multiplier effect. Research and Development effort would also add tremendous value to the region by creating quality employment," he said.
The project is expected to come up in five years. In case the Ministry of Railways or project entity fails to take concrete steps on ground for commencement of the project within two years of allotment of land, it would be liable for payment of penalty for the default period at the rate of Rs 500 per month per acre, Vundru added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)