Centre, state tie up for coach factory

This is the first time that ministry of railways will be setting up a coach factory on a cost-sharing basis with any state govt

In a bid to meet the growing requirement for coaches by the Indian Railways during the 12th and 13th five-year plan period, the ministry of railways is planning to set up a new rail coach factory in Kolar district of Karnataka. The ministry of railways today signed a memorandum of understanding with the government of Karnataka for setting up the factory at Rs 1460 crore on an equal cost-sharing basis.

This is the first time that ministry of railways will be setting up a coach factory on a cost-sharing basis with any state government. So far, the railways has set up three coach factories on its own at Chennai, Kapurtala and Rae Barreilly. Both the ministry of railways and the state government would spend Rs 1,460 crore to set up the factory with a capacity of 1,000 stainless steel coaches per annum in two phases. The state government will provide 1,118 acres land free of cost to the ministry of railways apart from sharing the expense of setting up the unit.
 

It will also supply free water to the project to be set up in Srinivasapura taluk in Kolar district, said K H Muniyappa, minister for micro, small and medium enterprises, here today. The project was originally conceived when Muniyappa was minister of state for railways two years ago. According to the ministry of railways, the requirement of rail coaches is estimated at 33,000 units during the 12th plan period and 37,000 coaches during the 13th plan period.

Presently, the in-house coach factories of Indian Railways produce 3,300 coaches annually. Apart from this, 600 coaches are made by BEML taking the total coach production to 19,500 coaches. In addition, the upcoming factory at Rae Barreilly (1,000 coaches) and sanctioned units at Kancharapara (500 coaches), Haldia (400 coaches) and Palghat (400 coaches), likely to be completed during the 12th plan period would yield additional 2,300 coaches annually.

The proposed facility in Kolar would manufacture 1,000 coaches annually once the Phase-II is also implemented. Therefore, during the 13th plan period, actual installed capacity would become 36,000 (19,500 existing + 11,500 in the pipeline + 5,000 from Kolar unit).

This is close to the assessed requirement of 37,000 coaches during the 13th plan period, the railways said in a note. As per the MoU signed today, both the Karnataka government and ministry of railways have agreed to share the cost of the project and any further cost escalation. The cost of the project excludes the cost of land, which will be borne by the state government.

The state government already possesses 550 acres and it would acquire the balance land and handover to the railways. The project will be completed in a five years' time frame by March 2019.

The proposed factory will provide employment to about 10,000 persons, once it is fully completed, Muniyappa said.

* Proposed rail coach factory is India's 1st cost-sharing project

* This will be the 4th rail coach factory of the Indian Railways after Chennai, Kapurtala and Rae Barreilly

* Total cost of the project is estimated at Rs 1,460 crore

* Total land required for the factory is 1,118 acres

* The construction of new factory will be completed in five years by March 2019

* To provide employment to 10,000 persons